Posts Tagged ‘Property’

Delinquent Tax Properties – Why They Are the Best Source of Property

February 11th, 2021

Are you looking to make money from delinquent tax properties? There are several ways. The first question to ask yourself is, what do you want to accomplish by getting involved with delinquent tax properties?

Basically there are two ways to make money by getting attending tax sales: return, in the form of interest, on tax liens that you can purchase, and which wind up paying you off, or by acquiring the properties themselves at a bargain price.

If you’re interested on earning an above-market rate on your money, consider investing in tax liens. About half the states in the country sell tax liens against delinquent tax properties. Once you buy a tax lien, the owner and other interested parties will have a certain time period to pay off the lien, with interest and reimbursement of your legal costs. This is called the redemption period. If you don’t really want to acquire delinquent tax properties but are interested in a solid return only, buy liens on nicer properties in good areas. Most of the time the lien will be bid up by other people attending the auction to about 75% or more of the property’s value. But usually you earn the stated interest rate on the entire amount you invest.

By investing in nicer properties, you almost guarantee that you will be paid off and earn your interest. Over 95% of properties in the upper range of condition and value wind up paying off. Just don’t overpay for the lien in the event the lien doesn’t pay off. In that case you will apply for a deed after the redemption period and receive the property for what you invested in the lien.

The second way to make money is to try to acquire delinquent tax properties. I’ve found that most people want to get involved with delinquent tax properties in order to acquire bargain property. This is a lot trickier.

If you attend a tax deed sale, where a deed (and immediate ownership) is offered, you will be bidding against several others and the price will often reach retail value. If you buy tax liens to try to get property, you will have to wait out the redemption period, and will also often have to bid the prices of the liens up to near retail value. You may have to bid on low-end properties to have any chance of acquiring one with a lien. Also, you must hire an attorney to handle all of the legal work that goes along with acquiring delinquent tax properties through a lien.

So does this mean that it’s difficult to get cheap tax delinquent properties? Not at all. You just have to approach it from the right angle: buying the tax delinquent properties right from the owners before they lose them!

Now you don’t have to wait to get your property and do all the research needed to buy tax liens or tax deeds. Just see who is about to lose their property to tax sale, and contact them right beforehand! You’ll be amazed, many of the delinquent tax properties are free and clear, and the owners simply don’t want them anymore or can’t afford to keep them up. Then you can resell immediately for nice profits, or keep them for rentals.

Profit Through Tax Property Auctions and County Tax Lien Property Investments

January 11th, 2021

During these times of global financial uncertainty, some investment strategies that had been out of favor during the boom years are now making a re-appearance. One investment opportunity that has been around for years, but are now becoming highly profitable investments are government tax liens.

Simply, a tax lien is a claim against a house for unpaid local property taxes. The governing authority that is seeking payment of outstanding taxes places a lien on the property. This lien remains until the owner of the property pays their tax obligation. The lien ensures that the property cannot be transferred to anyone else unless the outstanding taxes are paid.

Tax Lien Certificates are sold by the governing authority at tax property auctions. This is where you, the investor, can make a great return. If you purchase one of these Liens the property owner must pay you the tax debt. They cannot sell the property and are in debt to you. If after a certain period of time (depending on the municipality of the property) the property owner has not paid you back, then the property passes to you.

Investing in a property that is under government lien tax foreclosure is profitable, because you can get it cheap and sell it later at a good price and make a good profit from it. This kind of investment is often seen as safe as the homeowner may pay up the value of the tax lien or lose the title to the property to the investor holding the lien papers. The downside is that it is possible that other creditors are owed money by the property owner, and if they declare bankruptcy, these creditors may have a prior claim to yours.

If you would like to invest in a government tax lien certificate, it is important that you have the correct information to understand what your investment is. With a bit of focused work on your part, you could make excellent returns on your investment. If the property associated with the lien certificate has good underlying value and is in good condition then it will be worthwhile investing in it.

You have to be confident that this tax foreclosure property is currently in a excellent state of repair to retain it’s value. It’s a positive outcome and a simple investment if the property owner pays his outstanding taxes to you as the owner of the lien. If the property owner cannot pay his outstanding taxes to you and you find that the property requires significant repairs, you could lose money. To avoid this outcome, you must see the property and be confident that it is a good investment before purchasing a lien certificate.

Tax foreclosure sales are cash only transactions at tax property auctions, so if you want to be successful and fast moving, you’ll need to have liquid cash funds available to you. If you have other ways of producing the cash, you only have 1 – 3 days to settle the deal.

Be aware of the risk that the property owner may file for Bankruptcy. If your end game was to secure the title of the house then this may be jeopardized as the judge may only compensate you with the value of the government tax lien certificate only.

The upside of county tax lien investments [http://taxforeclosures.lifeandmoneyonline.com/county-tax-lien.php] is the significant return that can be made. Tax liens are reasonably scarce so if you pick up a good one it can be considered a very valuable investment. You need to be able to demonstrate a good profit in the first place before taking the plunge into properties that are under tax foreclosure.

Make sure that you have all of the information you require and a carefully considered investment blueprint that will allow you to succeed in a government lien tax business. Remember that with any investment comes risk, and the larger the potential profits, the larger the potential losses if the strategy has not been considered fully.

Good luck with your future investing.