Tax Lien Investing

Tax Liens

2009-02-13T12:10:00.000-08:00

Tax lien sales are a great way to get started in real estate. Tax lien sales or investing in tax lien certificates are not a secret and can be seen nowadays on the infomercials you see every day on television.

The purpose of this site is to try and give some of what I’ve learned back to others who are interested in a better life for themselves and their families. My name is Tom Jackson and I am former real estate agent in Orlando Florida who has been fortunate enough to have some success in a few different areas of the real estate market.

Now I hear a lot of people saying that all that stuff you see about tax lien sales on TV is all hype. They say that they’re all scams. And do you want to know the truth? A lot of them are. But there are a few exceptions.

Although I have had success in sales as a licensed realtor, I’ve also made money investing in real estate and have helped others make money investing in real estate as well. As a matter of fact I’ve probably made some of my investor clients more money then I’ve made investing myself. Go figure.

In my experience in real estate I can say this, you can make money in real estate by investing in flipping properties. You can make money investing in rental properties. You can get cash back at closing. You can make money in real estate by investing in tax lien sales. You can create wealth by investing in real estate. Period. However you have to know what to invest in. More importantly than knowing what to invest in, you have to know how to invest the right way.

Disclaimer

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The information on taxlienblog.blogspot.com should not be considered, used, or substituted as legal or investment advice. For specific details on the processes, laws, guidelines and state requirements regarding tax lien certificates, tax liens investing, and tax deed processes be sure to check to local tax collector’s office or Official for the state county or region of the country you are interested in investing in and or seek the advice of a competent attorney regarding tax lien certificates, tax deeds, property taxes, investing, real estate investing or any practicing of real estate in general. You are solely responsible for any investment decisions that you make on your own. Please do prudent research in your investments and financial decisions. Buyer Beware.

The Truth About Tax Liens

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Tax liens are harder to invest in than you think. You don’t want to lose your hard earned money. For example Lets say you found a hot property but failed to do your research. You end up buying the tax lean certificate or deed, but you later find out that the property tax lien you just bought is sitting on a land mine field or contaminated grounds. Do your own research and due diligence or you may end up losing your investment is the property is deemed unsellable.

Although Tax liens may be difficult to invest in at first, it get’s easier with time as you become more familiar with the process. Additionally the rewards can be quite profitable in the end. In Florida I’ve purchased several tax liens. I haven’t been lucky enough to result in a property yet, but have obtained interest rates of 12 % - 16 % on average. I Invest in tax liens for interest rates for now, however I will eventually get into investing in tax liens and tax deeds for properties.

To learn how to get started in tax liens check out the Recommended Reading section or FAQ’s

Tax Lien Myths

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It’s as easy as you see on TV.

The reality is that most people that invest in tax liens ever end up owning the property. Only a small percentage of tax lien sales will result in property ownership, however this is great for people who are only planning on investing in interest. Tax deed investing may be a better strategy ownership.

It’s not worth your time to tie up your money in an investment.

Tax lien redemption periods can vary from a few months to a few years. The truth is that many of the tax lien certificates are often redeemed early. In some states due to early redemptions you may be able to realize investment returns from 50% and up to 200% or more.

Tax Lien Investing is too risky.

Just like any investment you make there are always risks involved. If you don’t do your research an buy a property that is not sellable and do not sell the certificate then you can lose your investment. However the fact is that tax liens certificates are one of the safest vehicles for investing in real estate. The investments are backed by the government and in many cases there is guaranteed interest returns on your investment.

FAQ's

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How to get started in Tax Liens?

The best way to get started in tax liens is to start researching in the area that you live in now. Go to your local county tax collectors site or court house research the process for your county. It’s easier to start local because you can easily do research on the property of interest because you are familiar with your area.

Additionally you can drive by the property and inspect the outside (usually you are not able to go inside these properties because they may be abandoned or occupied) and check out it's condition.

After you understand the process more you can start to branch out to other states. To get started I’d suggest you check out the Recommended Readings section.

What are Tax Deeds?

Tax Deeds are different then tax lien certificates in that you are bidding for ownership of the property as opposed to tax lien certificates where you are competing for the interest on the certificate when it is redeemed and a chance to foreclose on the property.

How do Tax Lien Certificates Work?

Tax lien certificates are issued to help pay for delinquent property taxes. The government uses this money to for police, schools, and other government departments and activities. When you purchase tax lien certificates you benefit from interest being charged on the lien once it is paid back.

Can I really buy properties for pennies on the dollar?

Yes. If you purchase a Tax Deed or Tax Lien Certificate and it is not paid by the redemption period you can foreclose on the property or obtain ownership.

Contact Us

2009-02-12T11:27:00.000-08:00

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