The government must collect taxes to be able to do its business day to day. If a property owner does not pay their taxes the government will offer publicly, tax lien sales.
Current research shows there are 30 states that offer tax lien sales. In these states there are 1000s of certificates for sale and in order to purchase them you need to know which ones are for sale, where are they located and when the sale is taking place. Most times with due diligence you can get this information easy enough. That is the easy part if you are not skilled in investing.
Tax lien investing is a two headed monster that really is not that difficult to grasp, becoming an expert takes time, becoming educated enough to know right from wrong depends on you and the information you receive.
Certificate sales are not the same as deed sales.
Certificates are purchased through the government at specific stated times giving you the investor the opportunity to buy the collection rights to a property owner that has not paid his taxes, a certificate does not give you the investor any property rights it gives you the right to collect back your money invested plus a high interest fee. This scenario will make it easy for you to understand. A property owner does not pay his taxes; the government wants that money so they allow you the investor to pay the bill due for the property owner that has not paid them, this way the government will get their money. You get a certificate proving you paid the property owners bill for him. Now you wait and when the owner pays his taxes (over 98% do) the government collects not only the total amount due but also collects a penalty fee from the delinquent non-payer for his late payment fee and sends all monies to you. This penalty is interest due on taxes owed and is set by the government and is a stiff rate. The rate depending on what state the property is in could be anywhere from 8% to 14%. Can you think of another type of investment that will show returns like that with almost no risk? Occasionally you can even see returns of 25% - 30%!!
This way of investing is one of the if not the best opportunities to make big returns on your initial investment with very very little risk on your part.
Your mind may be asking questions like:
- Is it true you can receive astronomically high annual yields by investing in certificates?
-If there are leftover liens from the county after a tax sale can I purchase them right there and then?
-How will you know what the interest rate on the certificate will be?
-When and where is the next sale? Some states hold sales once a year, while other states hold sales 4 times a year or even monthly.
All valid questions, here are a few more you should know the answers to before you invest:
*Is there a situation when you should NEVER call the County?
*Obtain Tax Sale Listings From a variety of sources the "right way"
*The correct Documentation you must have to bid on certificates for sale.
If you have a solid plan of action to follow, if you know where to look, what to look for, how to look and if you take action you will find rewards and returns through this way of investing you did not believe were possible.
Do not believe you can snap your fingers and make it happen, do it right from the start by getting answers to all your questions in an honest easy way which will arm you with the proper information to make an informed decision.
Stuart J Miller is enamored with tax lien investing. If what you have just read grabbed your attention on the possibilities of investing, go to Tax Lien Sales Information for more information and a complete 'System' to show you how to invest in profitable certificates and tax deeds. Plus receive these 3 bonuses FREE- 1) Exclusive private invitation to attend a one-of-a-kind Q & A teleseminar with the tax lien lady, 2) How to use a Self-directed IRA to invest in tax lien certificates and deeds, 3) State guide to tax lien and deed investing in every state. Tax Lien Sales Information |
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