Tax lien certificate investing – 16 percent return on your money or more

tax lien investment guides

Posted by Jim | Posted in tax lien investment guides | Posted on 18-06-2010-05-2008

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Are you absolutely clueless about tax liens, real estate notes, or paper mortgage notes in general? I can help you!

Real estate is a hard business. Long delays, waiting, patience of the gods, huge capital requirements (ie. money down and upfront), and severe maintanence upkeep make managing and thriving in real estate one of the most challenging businesses to succeed in. It’s a miracle anyone makes income from it and doesn’t go insane. One way to get around the above problems is to deal in paper real estate, which includes tax liens, real estate notes, or any similiar mortgage instrument. You own a certificate not unlike a stock certificate or CD from a bank except that you are paid a lot more money and are secured by actual real estate property (homes, malls, shopping centers, land, etc.). If this is much easier and cheaper to do, why don’t more do it? Simple, because there is one problem with it, and that is it takes time to do (patience). Real estate naturally has a long turnover rate, even for foreclosures or delinquencies. The easiest of the bunch, and hence the fastest, is still real estate paper. There are many guides, free and paid, out there that teach you the process but most leave you gaps to fill out for yourself (bad) and yet others tell you this can be done online (true) but don’t tell you what websites do the listing and buying/selling for you (the real secret, which is what you paid for!).

One little known guide I know of that teaches you everything and then tells you the websites to log on and check (government websites of state, federal, and county) for cheap property online is the “Tax Liens Made Easy” ebook and ecourse. It’s got it’s share of pro’s and con’s which I explain below.

The Pro’s of this guide are:

1. Easy and simple to read with organized chapters, charts, examples, and pictures.

2. Includes websites (free and paid) that catelogue’s the entire United States databases of delinquent and foreclosed properties, which are pulled directly from state, local, and federal websites and data centers.

3. It actually is as cheap as it claims to be (meaning you really do only spend $100-$3000 per property lien).

4. The price of the ebook is fairly cheap (which becomes a problem later, see cons below).

5. Success turnaround can be as fast as 1 week or 30 days depending on your luck.

6. You’ll be helping the IRS and local + state governments earn income (may be a bad thing).

7. Anyone can do this. Requires only a basic laptop and internet connection.

The Cons Of This Guide Are…

1. The price should be $1,000. I think it’s dangerous that too many people have the ability to buy this course for cheap and hence raise competition. Luckily most people do not buy the guide so competition is always minimal, but I like staying safe.

2. Helping the IRS make money. The US government will love you because you’re helping them get badly needed cash dollars to run services like the post office, roads, or courts. Also you will be helping to provide affordable housing to people (which is the U.S. government’s primary motivation besides taxes) by getting these unused homes into use as fast as possible. If you despise the American government this may be a turn off. On the other hand, getting on the government’s good side grants you tax credits and favorable treatment. Providing housing can also alleviate any conscious problems.

3. Too much money to be made. With more money comes more taxes. Even though there are many legal tax loopholes, credits, and deferrals, paying taxes is always a pain. You’ll be paying more with the millions of dollars you will make from this course.

4. I hate waiting. Often, you will be dealing with the government, and the government is SLOW. It can take a while before deeds or property is transferred to you.

5. Many homeowners pay back the taxes with interest. Instead of taking over the homes for cheap, the homeowners pay their back taxes with 16-50% interest. So many times you will get your money back plus 16%-50% interest (return) on investment. Not too bad but I still rather have the big house.

6. Could fix some of the spelling typos here and there, which is a common problem amongst successful real estate investors. I bet Donald Trump & Robert Kiyosaki has a team of proofreaders to fix all their little grammar and spelling mistakes.

The Overall Verdict…

It’s a great money making course in real estate paper and tax liens. With 2 million homes in foreclosure at any given time, this means the government needs 2 million tax lien purchases from investors like you to keep things going. You need to help lower taxes and provide affordable housing for people by buying and using this course right now. You won’t regret it.

Posted by Jim | Posted in tax lien investign | Posted on 18-06-2010-05-2008

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My third mistake was in paying the subsequent taxes for almost 2 years before I checked the zoning. Begin by examining the different counties in the country using naco. The best way to deal with a tax lien is to fill out a tax form called a W-8BEN form. This can, again, be located by talking to the local tax collector (treasurer). How To Care For The Elderly You can also print a pre-foreclosure letter with tax lien manager. I was happy to sell him the lien and get the interest and he was happy to have a tax lien certificate that was ready to foreclose on a property that he thought he would eventually be able to get a variance on and build on. I got a lot of good questions and I won’t be able to answer them all in this article, but I want to try to answer those that were asked most often and that weren’t answered in my new free video course.00 the interest rate is 18%, for anything under $1500. How To Take Care Of Old People The IRS’s lien now attaches to the house.

For amounts owed over $1500.00 at the end of the year the homeowner will have to pay you back at 24%, should he redeem the lien, plus you will get the redemption penalty on the certificate amount of your lien.. Nursing Home For Dad This must include notice of the right to request a hearing within 30 days from the sixth day after the lien filing. The IRS must record a release within 30 days of full payment, but often the agency doesn’t follow through. If no-body else wanted it maybe there is something wrong with it! Check the property out before you buy. Each state also has different penalties that may be applied in addition to the interest amount on the lien. Nursing Home Seniors Nursing Home The officer should telephone you, so list your work and home telephone numbers in your letter. Now instead of bidding against every interested party who can come to the sale, you’re competing with every interested party with a computer.

It will be the simplest cash you will get from most real estate investing strategies.The amount of return on investment is very small considering you have no control over the amount of tax liens available or if the owner will ever pay the taxes. Senior Care The Acquisition/Redemption/Foreclosure tab lets you track redemptions, title searches and the foreclosure process. The straight line is better, and quicker. A lot of these properties are junk properties. A Simplified Example Let’s look at a somewhat simplified example: Let’s say you go to a sale and purchase and a $5,000 lien on a property with annual taxes of $10,000. Nursing Home For Dad Even if property owners pay up and get their property released, the lien purchaser still gets a good amount of money as an assured sum without any hiccups through buying tax liens. The IRS will issue a Certificate of Release if you fully pay the tax owed, discharge it in bankruptcy, or pay it through an Offer in Compromise, or (d) having the time limit for collections run. The only problem is that as tax lien and tax deed investing become more popular, there are less and less good properties left-over after the tax sale.

A few states do have online auctions, but not all counties in these states conduct their auctions online. How To Care For The Elderly I don’t, however, recommend investing in tax lien certificates by mail or online unless you can look at the properties or have someone.

Posted by Jim | Posted in tax liens gets you a house once in a while | Posted on 18-06-2010-05-2008

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Many counties in Florida, California, and Arizona have online tax sales. We should now have a list of future tax liens, where and when they will be sold. In my courses I have 2 audios from different experts from 2 different self-directed IRA companies that explain how to do this. You can even choose between several title search companies. What about purchasing tax lien certificates through the mail does not have all the problems that I described for online tax sales, especially if you are able to do your due diligence on the properties before placing your bid. How To Care For The Elderly All you have to do in order to purchase a tax lien is to fill out a tax form called a W-8BEN form. If you have tax lien certificates that are ready to foreclose, and you don’t want to go through the trouble of foreclosing on them, you may want to consider assigning them to another investor. That’s really not true, what they mean by “government Guaranteed” is that there are laws that protect the investor but you not guaranteed to get paid. This can, again, be located by talking to the local tax collector (treasurer). It may effectively prevent you from selling or refinancing real estate. Nursing Home Seniors Nursing Home There are a couple of states that you have to be a resident of the state to invest, but these are not the most popular tax lien states and they don’t have online sales.

. Tax liens in auctions are normally issued in lot numbers due to which bidders have absolutely no idea whether they are bidding for a residential house, plot of land or other type of property. Even if you don’t own property now, you might later and the IRS gets first dibs on the proceeds from its sale or financing. So, if you are a lien holder and you’ve paid over 10,000. Notice of Federal Tax Lien If the IRS sends you a valid tax bill and you don’t pay it, you may receive a written demand to pay.99, 4% for certificate amounts from $5,000. Here is one that I recommend: Contact the local tax collector (or treasurer) and find out when the next tax sale will be. If you tried but failed to convince the IRS to forgo recording a tax lien, here are your options after the lien notice has been filed: - Appeal the lien filing. Your initial investment was 25,000. Elderly Care This paper is officially called a Notice of Federal Tax Lien. You can track bankruptcies and DEP issues with the with the Bankruptcy/DEP issue tab.

(Internal Revenue Code § 6321. Q7: Can you invest in tax liens and tax deeds in your IRA? A: We all want to keep more of those profits for ourselves and not give half of it away to Uncle Sam.4%. Nursing Home For Mom And Dad Once you have obtained all of this information, you can then get the answer to the juiciest question of them all. Why don’t they show $10,000 in checks paid out to them? Why buy tax liens, when owning the property for less than $500 will give you ultimate leverage? Tax lien is a long, expensive roundabout way of try to acquire property. We need to find the rules of the sale for the tax liens. You can use this to set a price for your lien or to compare with the redemption amount that the tax collector gives you. The IRS will not reduce the original amount shown on a tax lien as you make payments. Seniors I did not want to start foreclosure because I didn’t think that there was anything I could do with the property, and did not know if I would be able to sell it.25% in some sates. This penalty only applies to the subsequent taxes.

I got a lot of good questions and I won’t be able to answer them all in this article, but I want to try to answer those that.