How To Get Started With Tax Lien Certificates

how to get tax lien certificates

Kathy Sanders Services for Real Estate Pros Jeffersonville, IN (502) 957-9079 Contact Profile

How do you acquire the information and skills you need to make money? While the process is not difficult, it does take a consistent and focused effort.

Start by learning everything you can about investing in either Tax Lien Certificates or Tax Deeds. There are over 3,000 counties in the United States, and each one of them has something a little different about the way they do things.

If you have very limited capital or are strictly looking for a guaranteed rate of return on your savings or investment portfolio, you may wish to concentrate on Tax Lien Certificates. If your ultimate goal is to buy and sell real estate or to build a portfolio of investment properties, then you may wish to concentrate on attending Tax Deed Sales.

Some of the questions you should ask:

  • What are real estate tax liens certificates and tax deed sales?
  • What are the risks versus the returns of tax lien certificate and tax deed investing?
  • Why should I buy tax lien certificates or tax deed sales?
  • How, when, and where can I buy tax lien certificates or tax deed sales?
  • Will I have to foreclose on properties?
  • Does my state offer tax lien certificates and tax deed sales?
  • How do investors redeem tax lien certificates?
  • Will I end up owning

    property?

When the county places a lien on any property with delinquent property taxes and sells the tax debt to investors it creates a win-win situation for everyone: the county gets their money, delinquent property tax owners get a little extra time to pay their overdue property taxes, and investors get a low risk, high return investment.

The annual returns you can make buying tax lien certificates are unbelievable.

  • Indiana tax lien certificates pay an annual return of 15 percent per year
  • Kentucky tax lien certificates pay an annual return of 12 percent per year

If the delinquent property owners pay their tax bill, you, the investor, make an extremely high rate of return on your money. If the property owners do not pay their tax bill, you, the investor, get to keep the entire property for the taxes and penalties owed, often pennies on the dollar. Of course, regulation can vary by State.

By Kathy Sanders Services for Real Estate Pros with Coldwell Banker

Posted on May 14, 2008 08:34 AM

Comments

5 Comments

i have a short-cut for buying liens and deeds. if you buy them from other liens holders you don't necessarily need to wait the entire redemption period. i bought a lien from a guy in Florida and was able to start foreclosure 5 months after buying it w/o waiting 2 years, 3 years, etc.

Source: activerain.com

Category: Insurance

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