If you are familiar with tax lien investing, then you probably know about the occasional opportunities to buy property for the price of back taxes. Imagine getting a $200,000 piece of property for a few thousand dollars. To take advantage of this investment, you need to know How to Foreclose on Liens.

When you win the bid on a lien, the property owner is allotted a certain amount of time to pay back the debt, along with some healthy interest and penalties. Most of the time, they do just that. Once in awhile however, they do not. When they don’t, that piece of property becomes yours, free and clear – after you foreclose.

There are two types of foreclosure systems. You’ll need to know which kind is used by the state you’re foreclosing in.

The How-To of How to Foreclose on Liens

Regardless of which system is being used, the first step is to notify the county of your intention to foreclose.

Next, you will either need to publish your own legal notice of eminent foreclosure and send notice to the owner, or the county will handle it. It depends on what the state mandates. Once this is done, either the owner or the bank holding the mortgage will have the chance to make good on the debt. If the money is paid, the interest and penalties that the government applied to the debt becomes your profit. Those monies are added to the original principal of the lien.

If no one comes forward to cover the bill, one of two things will happen. The property goes up for sale at auction, or you own the property outright. It’s the governing law that determines which way it goes. Some states do it one way, some another.

If you happen to be in an area where the property is forced into a sale, you may still get yourself that real estate, but only if no one bids higher than the total amount due.

The two systems dealing with foreclosures are explained pretty clearly in the book titled, Tax Lien Riches available at www.taxlieninvestingguide.com. The author uses layman’s terms and spells out all the smaller details to help you get through it. The book is an easy yet incredibly informative read. If you truly want to know How to Foreclose on Liens correctly, I highly recommend that you read it before your next auction. Not only will you know how to deal with problems, you’ll know how to prevent them from happening most of the time.

You may not have heard of Hybrid Tax Investing before. It’s not available in all states, but in the places where it is permissible, you have a golden opportunity to make some serious cash. Before you begin though, you need to learn the ropes to ensure you make the best investments.

Hybrid Tax Investing is Win/Win

As with Tax Deed Investing and Tax Lien Investing, the first thing to do is find a decent property that is selling due to tax default. You also want to make yourself aware of which type of investment is allowed in the state that the home or lot is in.

When you purchase the deed to a property that is being sold for back taxes, that property belongs to you, just as it would normally. With a Hybrid transaction, the former owner still has the opportunity to pay off his debt with added interest and penalty fees.

If the previous owner manages to settle the bill, the ownership of the property reverts back to the person you bought it from. If that happens, then you receive your original investment plus a profit of all the interest and penalties. There is nothing for you to do but wait for your cheque and cash it. The government takes care of all the billing, collecting of monies and delivering the funds to you. That’s easy profit.

Should the previous property owner fail to raise the necessary funds to clear the debt, then you are the owner free and clear. You will have bought a piece of property for a fraction of what you can now sell it for. To keep your capital working for you, you will probably want to resell as soon as possible. After that, you keep repeating the process, making money over and over again.

Something to keep in mind with Hybrid Tax Investing, is that it can be a lengthy process. The government allots the previous owner a specified time frame in which to come up with what he owes. It may be a couple of months or a couple of years. It’s probably best to think of it as a long term investment, but one that will pay off handsomely.

You really need to be knowledgeable about tax investing methods and various state regulations before going into this type of endeavor. Andrew Kestler has written an easy to follow book that explains everything in straightforward layman’s terms. You can pick up a copy of Tax Lien Riches at www.taxlieninvestingguide.com. Happy investing!

Property Liens of the Rich and Famous

When you think of the type of person who might have a lien on their property, what sort of image comes to mind? Perhaps you envision someone who is poverty stricken or down on their luck. Maybe you figure their property is rundown and ramshackled. If this bears any resemblance to what you were envisioning, you need to revise your mental picture. While folks like the ones you thought of do sometimes get liens put on their land, there are plenty of Property Liens of the Rich and Famous, too.

If you’re involved in tax lien investing, you already know that all types of properties are put on the auction block. It’s not just slum or low income homes on the bill. If you watch, you will sometimes come across property liens of the rich and famous, and guess what! You can bid on those liens.

You may still be finding this all a little hard to believe, but it is all true. We who are not rich and famous think that anyone who is can afford to pay for almost anything, and never has financial worries. Truth is, that’s not always so. On occasion a celebrity may purchase a very expensive home and find the property taxes too much to handle. That’s not always the reason though.

Sometimes when you find Property Liens of the Rich and Famous, they appear on the bidding list because the owner or their employees failed to pay the tax bill. This may be due to a busy schedule and forgetful mind or any number of other things. None of that matters to the tax lien investor. What’s important is that you have a crack shot at a golden opportunity.

Naturally, as you can imagine, the property liens of the rich and famous tend to be far more expensive than that of many other properties. That fact does not negate the value of investment, of course – quite the contrary, but you’ll want to make sure that you’re prepared to bid on a lien of this nature before heading off to the auction.

An author by the name of Andrew Kestler has written a book entitled, Tax Lien Riches. This is a publication that can be of immeasurable help in the tax lien investment area. Andrew writes in easy to understand format and puts in all the details that help people bid successfully. Considering how much money even one celebrity tax lien can make you, you are well advised to check the publication out at www.taxlieninvestingguide.com.

The bottom line is that tax lien investing is an amazing way to work your money. It’s guaranteed by the government, and is typically high-yielding. The best part of it is that you too can purchase Property Liens of the Rich and Famous. Good luck, happy bidding!

It happens very rarely, but it does happen. You won your tax lien bid and all that’s left is to wait out the redemption period and collect your money. It’s all humming along good and as it should. At least, it is until you find out that the property owner has filed for bankruptcy. Thoughts of lost money may have you feeling distressed, but don’t panic yet. When it comes to tax liens, there are 3 things you should know about bankruptcy.

Keep in mind, that when a property owner files for bankruptcy during the redemption period of a lien, it is a federal judge that decides how all outstanding debts are to be handled.

The 3 Things You Should Know

1. You Are Secured. The first thing that happens is that a court issued stay is put on all claims against the person filing for bankruptcy. Creditors are labelled either secured or unsecured. As you have a first position lien, you are deemed a secured creditor, and you have a place in line ahead of the bank that holds the mortgage on the property.

1. You Might Be Secured. Usually what happens is that the judge will allow things to remain as they were. You will be eligible to collect your original investment plus interest. There is no guarantee, however. It is within the judge’s rights to mandate that the property be sold, with the resulting funds being used to partially pay all the secured creditors. In this case, you may not receive all of your money. This is not a typical treatment of these matters, but you should know that it can happen.

1. An Ounce of Prevention. Once you are in this type of situation, you are at the mercy of the court. The time to take measures of protection is before you purchase. Your risk of buying a lien that could end in bankruptcy court is higher on properties from run down areas. Look for more expensive liens on pricier properties. The higher end properties seldom go into bankruptcy.

No matter where you purchase liens, the chance of having your tax lien investment end up in bankruptcy court is remote, probably no more than one in 250 properties that you by liens on. Still, you need to know about this risk. As with everything else in life, the more you know, the better your decisions are likely to be. Being better informed will also help keep panic at bay if something like bankruptcy does arise.

Get a copy of Tax Lien Riches and read that cover to cover. You should do that things right now, before you even think about going to another tax lien auction. By the time you’ve read and digested it, you will be a very well informed tax lien investor and well on your way to making a lot of money.

You may already know that Tax Lien Auctions are terrific for picking up your next guaranteed high yield investment. Are you aware though, that if you fail to do your homework that you could have a problem? One missed formality can get you disqualified from bidding.

“Tax lien auctions are fairly simple. However, there are some key details you should know before you attend your first auction.”

Andrew Kestler, author of Tax Lien Riches

What You Need to Know About Tax Lien Auctions

The required forms and information varies from state to state. You really need to learn as much as you can in order to take advantage of tax lien investing, but it pays off so well, that you’ll be very happy that you did your due diligence.

In some states, you must pay for the tax liens immediately upon winning the bid, while others ask for a 10% deposit right away, with the balance due at the end of the day or sale. You have to know before you go what the payment policy is, and how it needs to be implemented.

You’ll also need to check with the county that you’re planning to bid in as to whether or not they charge an entry fee for the auction. Many are free, but not all of them. For example, one county in Iowa charges $100.00. If there is an entry fee, find out when it must be submitted by. Typically, it is due with your registration.

Before you are allowed to bid on a tax lien, you must present a fully completed W-9 tax form. This is important enough that if you forget it, you may as well stay home. It is best for you to find out if there are any other papers that you need to file, as well.

Another thing to check with the applicable county is their registration deadline. Some accept registrations a couple of days prior to the auction, others require it a week ahead of time. If you miss the due date, you won’t be allowed to attend the auction or bid. Tax lien investing is profitable and safe, so you are not going to want to miss out.

Preparing for Tax Lien Auctions is a fact-finding mission and forms gathering exercise. Every state has its own set of rules and policies that you should know prior to attending your first auction. Find out everything you can about how the process works, and you will have a distinct advantage and smooth transaction. If you would like an easy to understand manual that explains in detail, pick up a copy of Mr. Kestler’s book at www.taxlieninvestingguide.com.

Happy bidding!

If you’re looking for a wound investment with a high, guaranteed return, you may want to consider Tax Deed Investing. It’s an excellent way to acquire property for just the price of back taxes. One of the nice things about this type of investment is that almost anyone can do it.

What Tax Deed Investing Is

In some states, when a homeowner has neglected to pay their property taxes, you can pay that tax bill and take over the deed to that property. You own it right then and there – on the spot, and at a heck of a low price.

As an added bonus, if you’re in a state that allows it, all existing liens on the property are officially erased. It’s all legal too. It’s the government that does the erasing.

What To Do With Your Tax Deed Property

It’s up to you what you decide to do with the property. You have all the usual options:

• Resell it as it • Live in it • Give it away

• Flip it • Rent it out • Let your mother-in-law live in it

Okay, that last one was a joke. To keep your investment going and growing, naturally you’re going to want a fast resale. Then you can turn around and repeat the process. Considering you paid so little for the property, you are going to make a huge, healthy profit. And if you do decide to let your mother-in-law live in it, it’ll be inexpensive compared to paying the full normal price.

Caution

Not all states allow Tax Deed Investing. Some only have Lien Tax Investing, while others offer Hybrid Tax Investing. You do have to put in some homework in order to run these types of investments successfully.

If you are new to the buying of properties that have defaulted on their taxes, you need to learn as much as possible before making your first purchase. Not all deeds are good to buy or bid on. That stands true with any piece of land, and you have to be careful if you want to avoid making a poor investment. There are do’s and don’ts and things to look for. You also need to know which states allow each kind of investment.

Your best bet for a fast learning curve is to find a mentor, or some information that goes right to the point and lays things out in layman’s terms. One highly regarded book on the topic is Andrew Kestler’s, Tax Lien Riches. It can be accessed through his site at www.taxlieninvestingguide.com, if you’re interested in fast and easy learning. It’s great if you’re eager to get started.

Enjoy your new investment strategy, and whatever you decide to do with your acquisitions from Tax Deed Investing, don’t forget to pay your property taxes!

What type of investing are you doing? Is it safe? Does it offer a staggeringly high rate of return – guaranteed? No? Well, perhaps you should consider Tax Lien Investing and start making your money work for you.

Tax Lien Investing 101

For those not familiar with tax liens, don’t worry. It’s not as scary as it may sound. You know what property taxes are, so you’re halfway there already.

The government expects homeowners to pay their property taxes every year, in full and on time, like all other creditors do. For a variety of reasons, sometimes people don’t. When that happens, an investment opportunity arises. As far as the government is concerned, a person’s home is their collateral if they fail to pay their tax bill. The smart investor (you) pays that outstanding bill, which means that investor (you) has purchased a first position lien on the property in question.

After that, there’s a bit of a wait. The governing body involved will notify the homeowner that they have a specified period of time in which to pay up their arrears. It could be months or it may be a couple of years. It’s like a ‘one last chance’ before they lose their property. Obviously, there’s two ways this can go – they pay up or they don’t.

What Each Option Means In Tax Lien Investing

1. If the person in default pays their tax bill within the specified period of time, the government cuts you a cheque. The amount they give you will be the original principal (your investment) plus interest and penalties (your profit) that they’ve collected from the consumer on your behalf. You don’t even have to do anything except cash the cheque.

1. When the person in question does not pay the bill within the allotted time period, you can then foreclose on that property. As you will have the first position lien, you have first dibbs. Not even the bank holding the mortgage can get in there ahead of you.

As you can see, Tax Lien Investing is a pretty sure of making some good money. You win regardless of how the situation plays out.

A Caution

Not all states allow Tax Lien Investing. Some only allow for Tax Deed Investing, and still others offer Hybrid Tax Investing. You need to know which one is legal in the state you are looking to invest this way in.

Your best chance of success in any type of investing is to be as fully informed as possible. Learn as much as you can about each type of investment, including which states allow what.

If you can find a mentor, great. If not, or you prefer a faster and easier way, try the highly recommended book by Andrew Kestler entitled, Tax Lien Riches. It explains everything in layman’s terms and gets straight to the point. It’s available through www.taxlieninvestingguide.com.

Best of luck with your new investments, and don’t forget to pay your property taxes or someone will be doing some Tax Lien Investing on your property!