"STOP Living Paycheck to Paycheck and START Generating Safe, Certain, & Predictable Returns With High Yielding, Real Estate Secured Tax Lien Certificates."
No! You're not reading the National Enquirer. That headline is for real. In this special report you're going to learn how to enjoy safe, secure, high-yielding returns of 16%, 18%, 24% up to 50% with tax lien certificates. In addition, you'll discover a New and Exciting way to purchase real estate for just pennies on the dollar.
Those in the know, mainly the wealthy, have been investing in tax lien certificates for years. Furthermore, they've done their very best to keep it under wraps.
That is, until now!
That's right, I'm going to explain exactly how and where you can earn 16%, 18%, 20% up to 50% returns with government issued, real estate secured, tax lien certificates. Unlike other investments, investing in tax lien certificates doesn't require a college degree, big bank account or excellent credit to get involved. In fact, with a little insight and some action on your part - you'll be well on your way in no time at all.
In thousands of counties across the United States local tax counties have millions of dollars in outstanding property taxes.
The collection of real estate property taxes is a major priority in every county across the United States. If the county is unable to collect property taxes, it is also unable to provide important government services like police, fire, and schooling. Without the revenue generated from real estate property taxes the county would literally go bankrupt.
To solve this cash flow problem, county governments create and sell tax lien certificates. Investors purchase these certificates from the county. In return, the investor is granted all the rights that come with being the owner of the real estate tax lien. Including, the right to collect sky-high, statute mandated, interest rates.
Tax sale investors are realizing annual returns of..
In my opinion, government issued tax lien certificates are the ideal investment for your money. Where else can you get safe, secure, high-yielding returns of 16%, 18% up to 50%?
Unlike the stock market, when you invest in tax lien certificates your money is safe and secure. I'll explain. You see the rise and fall of interest rates has no effect on tax lien certificates. Interest rates on tax lien certificates are mandated by state law. In addition, tax liens are secured by real estate. In the event the investor isn't returned what they paid to purchase the lien, plus interest and penalties, he or she can take the property (typically through foreclosure). Generally speaking, foreclosure will wipe out the mortgage since it's junior to the tax lien. Because real estate property taxes only represent 1.5% to 6% of the property's true market value investors can end up with real estate for just pennies on the dollar.
For "risk-adverse" investors like you and me, government issued tax lien certificates are the ideal investment. Just imagine receiving predictable, high rate returns from the government. Basically, you invest your money with the government and when the government collects the past due taxes, the government sends you a check, returning what you paid to purchase the tax lien certificate plus high interest.
In Arizona it's fixed at an annualized rate of 16%. Specifically, "...all taxes bear interest from the time of delinquency at the rate of sixteen percent per year simple until paid. A fraction of a month is counted as a whole month. (Sec. 42-18053)."
In the state of Florida it's 18%. More specifically, The maximum rate of interest on a tax certificate shall be 18 percent per year; (Sec. 197.172 (2))."
In the state of Georgia it's 20%. More specifically, "The amount required to be paid for redemption of property from any sale for taxes as provided in this chapter, or the redemption price, shall with respect to any sale made after July 1, 2002, be the amount paid for the property at the tax sale, as shown by the recitals in the tax deed, plus any taxes paid on the property by the purchaser after the sale for taxes, plus any special assessments on the property, plus a premium of 20 percent of the amount for the first year or fraction of a year which has elapsed between the date of the sale and the date on which the redemption payment is made and 10 percent for each year or fraction of a year thereafter (Sec 48-4-42)."
You can get tax liens in almost any amount, ranging from $6 at the low end to several million at the high end. The best part is that these rates are fixed to stay high, regardless of what happens in the stock market, real estate prices, or interest rates.
When you invest in tax lien certificates, the right way, you'll either get high interest returns or real estate for just pennies on the dollar.
With that said, you should know that not all states offer tax lien certificates. Instead, they offer tax deeds. Don't be confused. Just think of tax deeds like real estate foreclosure sales. The county forecloses and sells tax delinquent real estate at a public tax sale. Winning tax sale investors are issued a tax deed.
Tax Deeds Could Be Your Secret Wealth Creation Vehicle -Allowing You To Purchase Real Estate for A Fraction of its True Market Value.
The tax deed procedure begins when real estate property owners let the taxes on their real estate go unpaid. After numerous warnings, notifications and public advertisement of the impending sale, the county auctions the property to the winning bidder (state laws differ).
Not all state's administer tax deed auctions the same. In fact, there are two possible tax deed scenarios.
Scenario 1: The county auctions the deed to the property, the sale of the property is final and the winning bidder receives a Treasurer's Deed or similar deed to the real estate property.
Scenario 2: The county auctions the deed to the property to the winning bidder, the deed is encumbered or restricted by a "right of redemption" or "waiting period" meaning the property owner can pay the delinquent tax and penalty and still maintain ownership. Penalties can be as high as 20% in Georgia and 25% every six months in the state of Texas.
After the redemption or "waiting period" has passed, i.e. 12 months in Georgia and 180 days in Texas, the winning bidder forecloses out the "right of redemption" and becomes the new owner of the real estate.
or
The property owner pays the delinquent taxes and penalties within the statute mandated "redemption period" and maintains ownership of the real estate.
At tax deed auctions, the county sells the property to the winning bidder. Typically, the opening bid at a tax deed sale is just the back taxes and administrative fees which, is usually only a fraction of the properties true market value. And in many cases the property is FREE and CLEAR of all junior liens and mortgages. It's not too uncommon to pick up the real estate for 10%, 20%, 50% up to 95% below market value.
It's No Secret That The Ultra Rich Have Been Consistently Realizing 16%, 18%, 24% Up To - 50% Returns Investing In Tax Lien's & Tax Deed's, Now It's Your Turn!
Like anything new, investing in tax liens and tax deeds might seem a little foreign at first. In addition, you may have a lot of fears holding you back. So I've put together a few steps to guide you through the process of investing in tax lien certificates.
Step 01: Review your goals, budget and circumstances.
Before you start a new project or task you need to seriously evaluate your resources to make sure you have what it takes to finish the task. So it is with tax lien and tax deed investing, you need to take personal inventory of the time and money you are willing to devote to this business. Just like the famous fable of the tortoise and the hare, slow and steady wins the race. This is a marathon, not a sprint, don't run faster than you have strength, pace yourself toward your goal. In addition, if you don't taken time to identify your goal how will you know when you have arrived?
Step 02: Formulate Your Investment Strategy
Your ultimate success, as a tax lien investor, is a function of setting honest, realistic goals with respect to the time and money you can dedicate to this investment opportunity.
For example, if you have identified that you are only able/willing to invest $200 per month, then, as you are browsing the list's of tax lien certificates you will eliminate any and all tax lien certificates that are more than your available investment capital. Likewise, if your target rate of return is 16% or greater you can eliminate the states with interest rates less than the desired rate of return.
As you become familiar with the investing process and procedures you can progressively move on to bigger deals with confidence.
Step 03: Select the Right State
Where do you begin? With so many states to choose from the task can seem outright daunting. Then you throw the 3000 plus counties into the mix and its downright overwhelming. Don't worry. I've simplified the process to make it "Quick" and "Easy". Plus, you've already taken the time to identify your goals making it a "Snap".
Over the years I've learned that there's a little more to selecting the right state than choosing the one that offers the highest rate of return. Visit my website, I've detailed each state's tax lien certificate process and procedure including interest rates, redemption periods and classifications. I created this valuable resource to save you a lot of time and grief.
Step 04: Select the Right County
Once you've selected the "Right State", you're ready to select the "Right County/ Counties". At the outset it can seem overwhelming, especially if you've selected a state with a lot of counties. Georgia, for example, has over 159 counties while Texas, has over 254 counties. Don't be discouraged.
Step 05: Request A Current Tax Sale List
By now you should have identified your investment goals and selected the right state and county/counties to commence your investing. You are now ready to obtain a current and correct tax sale list from the county. You can do this by contacting the tax collector of the county you're interested in. Typically, you can dowload the tax sale list from the county website. They may charge a small shipping fee to send it to you. Warning! There are website's that make a killing selling these lists. Don't be fooled into buying something you could get free from the county.
Step 06: Perform Your Due Diligence
Are you ready? Okay. Let's get started. First you should have several tax sale lists. As you review them, some may be small and others as big as the empire state building. Don't worry. Like Goliath, the bigger they are the harder they fall.
So, maybe you're wondering "What does all this mean?" That's a good question. But before we move forward, let me emphasis the importance of performing extensive, and thorough risk reducing research. If you purchase a tax lien on raw, useless, and/or otherwise contaminated property, chances are you'll lose your shirt and a whole lot more. Honestly, what value does a useless property have? None. Furthermore, there's no incentive for the delinquent tax payer to pay off the tax lien and interest. You'll never recoup your money. The strength of your investment is based on the strength of the real estate from which the lien is generated. Crummy property equals crummy investment.
Step 07: Make the Purchase
At this point you should've completed your research and selected the tax liens/tax deeds that you'd like to purchase. You should know that there are several ways of purchasing a tax lien or tax deed;
The method you choose will be a function of your goals, budget and the rules of the county you've selected. For example, lets say that you only plan on investing $1,000. It doesn't make sense, really, for you to travel a great distance to participate in the physical auction. Let's really think about it, you would eat up all of your potential profits in travel expenses. Therefore, left-overs via mail, or a live Internet auction make much more sense.
Whatever method you choose, you'll want to make sure that you have a firm understanding of the registration, auction, bidding, payment and redemption process/procedures.
Step 08: Manage Your Investment
What next? After full and timely payment for the tax lien certificate has been made, all you can do is wait, wait, and wait some more. Utilize this time to your advantage. I recommend that you be familiar with the foreclosure requirements well before the expiration of the redemption period. It would be an unfortunate thing if you couldn't foreclose because you failed to follow the laws governing foreclosure.
Step 09: Getting The Interest
As the owner of a tax lien certificate, you have two potential outcomes. If the delinquent tax payer steps forward and pays their tax bill within the statute mandated redemption period, they will have to pay what you paid to aquire the tax lien certificate, plus pay a penalty interest fee. Once full payment is received, you will be contacted by the taxing district and ordered to return the tax lien certificate. In return, the county will issue you a check in the amount you paid to purchase the tax lien certificate plus penalties and interest.
Step 10: Getting The Property
If the delinquent tax payer neglects to pay their outstanding tax bill, and interest, within the statute mandated redemption period, as the owner of the tax lien you can foreclose the subject's right to redeem. This effectively wipes out all junior liens and claims to the subject property. At that point it becomes your property.
Typically, the couny will issue a treasurer's, sheriff's or tax deed to the property. However, generally speaking, it does not convey good title. This is because the county does not want to take on the risks associated with a warranty deed. Mainly, that the grantor (i.e. the county) will protect the grantee (i.e. the investor) against any and all claims to the property.
To get a "Good Title" you'll want to have your lawyer initiate an action to quiet title. This is a legal action that establish your title to the real property against anyone and everyone, and consequently "quiet" any challenges or claims to the title.
Once you have foreclosed, filed a quiet title action and the court is convinced the title is yours, a quiet title judgment will be granted which can be recorded and thus provide legal "good title." Then you'll want to apply for title insurance. In it's simplest form, it guarantees that the owner has title to a property and can legally transfer title to someone else. Should a problem arise, the title insurer (title company) pays any legal damages.
Now that you are the owner of the property you can either sell it or rent it.
I don't know about you, but for me, this is exciting stuff. I mean think about it. As a tax sale investor you'll either receive sky-high interest rate returns or real estate for just pennies on the dollar.
There you go. I've given you a brief but detailed overview of the tax sale process. You've literally nothing to lose and a world of profits to gain! There simply isn't a reason why you shouldn't supercharge your investment portfolio with safe, certain, real estate secured tax lien certificates.
This article is designed to provide accurate and authoritative information in regard to the subject matter covered. It is read with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, seek the services of a competent professional.
Copyright 2005, Instant Income, Inc. - All Rights Reserved Worldwide.
Steven Waters is a licensed real estate agent, investor and popular author. He owns and operates a popular bimonthly tax lien certificate newsletter. When you join the newsletter, you'll receive a current list of the states offering tax lien certificates and tax deeds. In addition, it details the current statute mandated interest rates and redemption periods. This valuable report retails for $9.95 but is FREE when you visit http://www.ProfessorProfits.com and join the tax lien certificate investing newsletter.