By Joanne Musa
Foreclosure procedures for tax liens are different in every state. Some states make it easy for you and you only need to petition the county court, or go through an application process to get the deed to the property. In other states you will have to go through a foreclosure process with an attorney and this may take a lot of time and money. If the property has to go through a foreclosure sale, you may not receive the property, as it will go to the highest bidder at the foreclosure sale, but you will get paid on your lien.
One question that I get a lot about investing in tax liens is what percentage of tax lien properties can you actually foreclose on. I can only answer this question for the state that I invest in which is New Jersey. I have gotten e-mails from my subscribers who have heard that in New Jersey only 10% of tax liens actually foreclose, but the reality is that it’s more like 1%. And this is only the percentage of tax liens that you will be able to start foreclosure on. Most properties that you start the process on will redeem at some point during the foreclosure process. What I have experienced and heard from other investors in New Jersey is that it is a very small percentage of tax lien properties that are actually foreclosed on, in some area of New Jersey it is as low as .01%, since 99% of the 1% of properties that go to foreclosure will redeem at some point in the foreclosure process. There are some areas of the state that have a higher percentage rate of tax lien properties that foreclose, and these are the in the larger cities that have a larger percentage of distressed low value properties. If you are going to tax sales in the hopes of obtaining properties for back taxes, you may want to invest in deeds rather than tax lien certificates. What has happen in the North East and many other area of the country is that property has become so valuable that it is not likely that a homeowner will not be able to pay off a tax lien on their property.
Another thing to consider about investing in tax liens in hopes that you will be able to foreclose on the property is that in order to foreclose, you will need to pay all of the subsequent taxes on the property. A tax lien is not an investment that you buy once and forget about like a bond or a CD. It is something that you will have to continually invest in if you want to ensure the profitability of your lien. You must continue to pay the taxes during the redemption period to keep the taxes up to date on the property, so that when it comes time for you to foreclose on the property the taxes will be current. And when the redemption period is over there are more expenses that you will need to pay, like title search fees and lawyer fees.
The first thing that we do when it comes time to foreclose on a tax lien is a title search. Once you find out if there are any other liens on the property, you can send out a pre-foreclosure letter informing the owner and all other lien holders that you intend to foreclose on the property if you are not paid the amount that is due to you. Many liens will redeem after this step, saving you the time and money of hiring an attorney to start foreclosure proceedings for you. You can furnish any title searches that you have ordered to your attorney and your attorney will order updates when they are necessary. They will also send out a legal 30day foreclosure letter that will inform the property owner and all lien holders that the property will be foreclosed if a reply is not received within 30. Thirty days after this letter of notification is sent your attorney can start formal foreclosure procedures.
Joanne Musa works with investors who want to reap the rewards of tax lien and tax deed investing. She is the author of the Tax Lien Lady’s E-books, Tax Lien Investing Secrets and Tax Lien Lady’s State Guide to Tax Lien and Tax Deed Investing. For more about tax lien investing e-mail MoreTips@taxlienconsulting.com.
This article is for informational purposes only and my not be applicable in every state, since each state has different laws regarding tax lien and foreclosure. This article is not intended as legal advice. You are advised to seek out a qualified attorney for legal advise in this matter.
Monday, April 17, 2006
Tuesday, April 11, 2006
Report From the Field
I just came back from the Monroe County Tax Sale. Last year I was able to buy a building lot at this sale for the opening bid which was under $300. By the time I paid the recording fee, realty transfer fee and sale fee, I was up to over $600, but that still wasn’t bad for a building lot that can sell for as much as $25,000 if it can pass a perk test. This year was a different story. I came away empty handed; I only bid on a couple of properties and both of them went up to $5000 or more. Since I would have had to come up with all of the money for any properties that I bid on within an hour after the end of the sale and most of my cash was tied up in another deed and liens, I didn’t have much cash to play with. There were fewer properties in this year’s sale then last year and more bidders. I believe that there were even more first time bidders at this year’s sale than at last year’s sale. More of the properties were sold, and at higher prices than last year. Even the trailers and timeshares were bid up.
What surprised me the most was a 7acre lot that was mostly under water that sold for $15,000! On the tax map it only showed one stream that cut across the property and it looked like there was plenty of room to build. But if you actually did your due diligence and looked at the property you would have seen that there were two streams that took up most of the property with a small strip of land in between them. The lot was also irregularly shaped and there were two easements on the property. You wouldn’t have known about the easements unless you did some checking into the title.
Then there was a pond in a development that sold for $1,000. I came to the conclusion that these newbie tax deed investors liked to fish. I also really can’t explain the 0.02acre lots that actually sold. In past sales, stuff like this would have not gotten any bids and been put on the repository list. It looks like it’s becoming more difficult to buy tax sale properties for “pennies on the dollar” like some real estate gurus claim.
If you plan on going to a tax sale, don’t get carried away by the auction and don’t bid without doing your due diligence first. At the very least you need to look at the property, forget about what you’ve been told about buying through the mail or online unless you have someone who can look at the property for you. For deed sales, you really need to do some type of title search and if you are buying vacant land you must check the zoning on the property. For more information on how to do due diligence for tax deeds and tax liens go to www.taxlienlady.com.
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Joanne Musa works with investors who want to reap the rewards of tax lien and tax deed investing. She is the author of the Tax Lien Lady’s E-books, Tax Lien Investing Secrets and Tax Lien Lady’s State Guide to Tax Lien and Tax Deed Investing. For more about tax lien investing e-mail MoreTips@taxlienconsulting.com.
What surprised me the most was a 7acre lot that was mostly under water that sold for $15,000! On the tax map it only showed one stream that cut across the property and it looked like there was plenty of room to build. But if you actually did your due diligence and looked at the property you would have seen that there were two streams that took up most of the property with a small strip of land in between them. The lot was also irregularly shaped and there were two easements on the property. You wouldn’t have known about the easements unless you did some checking into the title.
Then there was a pond in a development that sold for $1,000. I came to the conclusion that these newbie tax deed investors liked to fish. I also really can’t explain the 0.02acre lots that actually sold. In past sales, stuff like this would have not gotten any bids and been put on the repository list. It looks like it’s becoming more difficult to buy tax sale properties for “pennies on the dollar” like some real estate gurus claim.
If you plan on going to a tax sale, don’t get carried away by the auction and don’t bid without doing your due diligence first. At the very least you need to look at the property, forget about what you’ve been told about buying through the mail or online unless you have someone who can look at the property for you. For deed sales, you really need to do some type of title search and if you are buying vacant land you must check the zoning on the property. For more information on how to do due diligence for tax deeds and tax liens go to www.taxlienlady.com.
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Joanne Musa works with investors who want to reap the rewards of tax lien and tax deed investing. She is the author of the Tax Lien Lady’s E-books, Tax Lien Investing Secrets and Tax Lien Lady’s State Guide to Tax Lien and Tax Deed Investing. For more about tax lien investing e-mail MoreTips@taxlienconsulting.com.
Thursday, March 23, 2006
Three Ways to Profit From Investing in Tax Lien Certificates
When you purchase a tax deed there is really only one way that you can make a profit on your investment and that is to sell or rent the property. But when you purchase a tax lien certificate, there are three ways that you can profit from your investment. The three ways that you can profit from a tax lien are summarized in this article. Read on to find out more about them.
The first and most obvious way that you make a profit on your tax lien certificate is by redemption of the lien. The property owner redeems the lien and you as the lien holder will be paid the certificate amount of your lien plus any interest and penalties. Because in most states the rate of interest is an annual rate, the longer the lien is held the more money you will make when it is redeemed.
If the lien is not redeemed, once the redemption period is over, you may start foreclosure proceedings on the property in order to be paid what you are owed on the lien. This process can be complicated or easy depending on what state your tax lien certificate is issued in. In some states you only need to petition the county court, or go through an application process, to get the deed to the property. In other states you will have to go through a foreclosure process with an attorney, and this may take a lot of time and money. If the property has to go through a foreclosure sale, you may not receive the property, as it will go to the highest bidder at the foreclosure sale, but you will get paid on your lien.
In some states there is a third way that you can profit from your tax lien investment without foreclosing or redemption, and that is assignment of your lien to another investor. Some states allow for the “assignment” or sale of a tax lien certificate from one investor to another. This is a way that you can realize profit on your lien without waiting to go through the foreclosure process. Of course you are giving up the opportunity of possibly coming away with the property, but you are collecting your profit sooner rather than later.
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Joanne Musa works with investors who want to reap the rewards of tax lien and tax deed investing. She is the author of the Tax Lien Lady’s E-books, Tax Lien Investing Secrets and Tax Lien Lady’s State Guide to Tax Lien and Tax Deed Investing. For more about tax lien investing e-mail MoreTips@taxlienconsulting.com.
The first and most obvious way that you make a profit on your tax lien certificate is by redemption of the lien. The property owner redeems the lien and you as the lien holder will be paid the certificate amount of your lien plus any interest and penalties. Because in most states the rate of interest is an annual rate, the longer the lien is held the more money you will make when it is redeemed.
If the lien is not redeemed, once the redemption period is over, you may start foreclosure proceedings on the property in order to be paid what you are owed on the lien. This process can be complicated or easy depending on what state your tax lien certificate is issued in. In some states you only need to petition the county court, or go through an application process, to get the deed to the property. In other states you will have to go through a foreclosure process with an attorney, and this may take a lot of time and money. If the property has to go through a foreclosure sale, you may not receive the property, as it will go to the highest bidder at the foreclosure sale, but you will get paid on your lien.
In some states there is a third way that you can profit from your tax lien investment without foreclosing or redemption, and that is assignment of your lien to another investor. Some states allow for the “assignment” or sale of a tax lien certificate from one investor to another. This is a way that you can realize profit on your lien without waiting to go through the foreclosure process. Of course you are giving up the opportunity of possibly coming away with the property, but you are collecting your profit sooner rather than later.
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Joanne Musa works with investors who want to reap the rewards of tax lien and tax deed investing. She is the author of the Tax Lien Lady’s E-books, Tax Lien Investing Secrets and Tax Lien Lady’s State Guide to Tax Lien and Tax Deed Investing. For more about tax lien investing e-mail MoreTips@taxlienconsulting.com.
Wednesday, March 22, 2006
Protecting Your Investment in Tax Deeds and Tax Lien Certificates
by Joanne Musa, The Tax Lien Lady
So you learned about how to buy a tax lien certificate or tax deed. You did your due diligence, prepared yourself to bid at the sale and you bought a tax lien certificate or tax deed. Now what do you do? Read on for information about the first step you need to take to ensure that your investment is profitable.
First of all, your lien or deed must be recorded in the county records, or it is worthless. In some states this is done for you and you pay a recording fee when you purchase your lien or deed at the sale. In most states, though, this is something that you will be responsible for and I suggest that you do it right away. You’ll have to wait until you have the deed or tax lien certificate, then you will have to send the original document, along with the recording fee, in to the proper office to be recorded with the county records. The required fee will vary depending on the state and county. You will need to call the recording office (usually the county clerk, or county recorder) and find out what the fee is so that you can send the exact amount in with the document. If you do not send the right payment your lien or deed may be returned to you without being recorded.
I suggest that you make a copy of the tax lien certificate or deed before you send it in to be recorded and that you send it via certified mail, with a return receipt. This way if your document is lost, you have proof that you sent it in to be recorded and you may be able to get it replaced. Also, the recording process can take some time, and if anything happens with the property in the meantime, you’ll have a copy of your document.
Once your document is recorded with the county, it will be sent back to you. Put it in a safe place. You will not be able to receive redemption of your tax lien certificate without providing the signed document to the tax collector. Do not sign it and turn it over to the tax collector until you are sure that the redemption amount is the amount that is due to you. To ensure that your tax payments, recording fees and other reimbursable expenses are accounted for, you will have to provide the tax collector with and affidavit for any payments that you make on your tax lien.
Joanne Musa works with investors who want to reap the rewards of tax lien and tax deed investing. She is the author of the Tax Lien Lady’s E-books, Tax Lien Investing Secrets and Tax Lien Lady’s State Guide to Tax Lien and Tax Deed Investing. For more about tax lien investing e-mail MoreTips@taxlienconsulting.com.
So you learned about how to buy a tax lien certificate or tax deed. You did your due diligence, prepared yourself to bid at the sale and you bought a tax lien certificate or tax deed. Now what do you do? Read on for information about the first step you need to take to ensure that your investment is profitable.
First of all, your lien or deed must be recorded in the county records, or it is worthless. In some states this is done for you and you pay a recording fee when you purchase your lien or deed at the sale. In most states, though, this is something that you will be responsible for and I suggest that you do it right away. You’ll have to wait until you have the deed or tax lien certificate, then you will have to send the original document, along with the recording fee, in to the proper office to be recorded with the county records. The required fee will vary depending on the state and county. You will need to call the recording office (usually the county clerk, or county recorder) and find out what the fee is so that you can send the exact amount in with the document. If you do not send the right payment your lien or deed may be returned to you without being recorded.
I suggest that you make a copy of the tax lien certificate or deed before you send it in to be recorded and that you send it via certified mail, with a return receipt. This way if your document is lost, you have proof that you sent it in to be recorded and you may be able to get it replaced. Also, the recording process can take some time, and if anything happens with the property in the meantime, you’ll have a copy of your document.
Once your document is recorded with the county, it will be sent back to you. Put it in a safe place. You will not be able to receive redemption of your tax lien certificate without providing the signed document to the tax collector. Do not sign it and turn it over to the tax collector until you are sure that the redemption amount is the amount that is due to you. To ensure that your tax payments, recording fees and other reimbursable expenses are accounted for, you will have to provide the tax collector with and affidavit for any payments that you make on your tax lien.
Joanne Musa works with investors who want to reap the rewards of tax lien and tax deed investing. She is the author of the Tax Lien Lady’s E-books, Tax Lien Investing Secrets and Tax Lien Lady’s State Guide to Tax Lien and Tax Deed Investing. For more about tax lien investing e-mail MoreTips@taxlienconsulting.com.
Sunday, February 19, 2006
Is Tax Lien Investing For You?
Tax lien investing used to be something that only the wealthy knew about and took advantage of. For decades it was a little known, high yielding investment vehicle. All of this has changed in the past few years as more and more people become aware of the high yields and minimal risk of investing in tax lien certificates. A lot of people have heard about investing in tax lien certificates but they’re not sure if it’s really something that they can do. Read on to find out if this is an investment vehicle for you.
Tax lien certificates are an attractive investment for the small investor because you don’t need thousands of dollars to start and you don’t have to pay any brokerage fees. There are drawbacks, however. You almost have to become an expert in tax lien investing to invest profitably. This is an investment that you have to be able to devote some time to. It’s not like you can call your broker and tell him to buy some tax liens for your portfolio. Tax lien certificates are sold at tax sales conducted by a county or municipal official. These sales are usually auctions that are held at least once a year. Counties with very large populations may hold tax sales quarterly or even once a month. You have to find out when and where these tax sales are held, do due diligence on the properties in the sale and attend the tax sale to bid on properties. When you are the successful bidder, you are issued a tax lien certificate and must record this certificate with the county clerk. You are then responsible for maintaining accurate records and submitting the proper documents to safeguard your investment.
If you have the time to spend investigating properties and you enjoy the challenge of learning something new, then perhaps investing in tax lien certificates could be a good way for you to increase your bottom line. If, however, you don’t have the time to spend researching properties and finding out about tax sales, then this is probably not the right investment vehicle for you. Another thing you want to consider is where do you live. Some states do not sell tax liens, and if you do not live in a state that has tax lien sales, you may have to spend a considerable amount of money traveling to tax sales in order to buy tax lien certificates. Although some counties have online auctions or sell tax lien through the mail, you would still have to do due diligence on properties before you place a bid. If you don’t, you may wind up loosing money by buying a tax lien certificate on a worthless piece of property.
Tax lien certificates are an attractive investment for the small investor because you don’t need thousands of dollars to start and you don’t have to pay any brokerage fees. There are drawbacks, however. You almost have to become an expert in tax lien investing to invest profitably. This is an investment that you have to be able to devote some time to. It’s not like you can call your broker and tell him to buy some tax liens for your portfolio. Tax lien certificates are sold at tax sales conducted by a county or municipal official. These sales are usually auctions that are held at least once a year. Counties with very large populations may hold tax sales quarterly or even once a month. You have to find out when and where these tax sales are held, do due diligence on the properties in the sale and attend the tax sale to bid on properties. When you are the successful bidder, you are issued a tax lien certificate and must record this certificate with the county clerk. You are then responsible for maintaining accurate records and submitting the proper documents to safeguard your investment.
If you have the time to spend investigating properties and you enjoy the challenge of learning something new, then perhaps investing in tax lien certificates could be a good way for you to increase your bottom line. If, however, you don’t have the time to spend researching properties and finding out about tax sales, then this is probably not the right investment vehicle for you. Another thing you want to consider is where do you live. Some states do not sell tax liens, and if you do not live in a state that has tax lien sales, you may have to spend a considerable amount of money traveling to tax sales in order to buy tax lien certificates. Although some counties have online auctions or sell tax lien through the mail, you would still have to do due diligence on properties before you place a bid. If you don’t, you may wind up loosing money by buying a tax lien certificate on a worthless piece of property.
Wednesday, February 08, 2006
Teleseminar Outline
How to Invest in PROFITABLE Tax Lien Certificates and Tax Deeds
TELE-SEMINAR
Starting Saturday February 25, 2006
Lesson One – February 25
Introduction to Tax Lien and Tax Deed Investing
You will learn:
- The difference between tax liens and tax deeds and redeemable tax deeds
- What you need to be aware of when buying tax lien certificates
- What you need to be aware of when buying tax deeds and redeemable tax deeds
- What is the difference from the investors stand point between tax liens and tax deeds
- Which are best for you to invest in, tax liens, tax deeds, or redeemable tax deeds
Lesson Two – March 4
Finding Tax Sales and Doing Due Diligence
You will learn: - How to find out about tax sales
- Resources for finding out about tax sales and getting sale property lists
- How to do due diligence for tax deeds and redeemable tax deeds
- How to do due diligence for tax liens
Lesson Three – March 18
Preparing for Your First Tax Sale
You will learn:
- Bidding procedures
- How to register for the sale
- What you need to bring with you to the sale
- How much you should pay for a lien or deed
Lesson Four – March 25
How to Profit from Your Investment
You will learn:
- What you need to do immediately after you buy a tax lien certificate
- What you need to do immediately after you buy a tax deed or redeemable tax deed
- Ways to profit from tax lien certificates; redemption, foreclosure and assignment
- What paperwork and tracking is necessary to keep your lien profitable
All classes will take place 11:00 am to 12:00 pm. This seminar is provided free from taxlienlady.com. To register go to www.taxlienlady.com/teleseminar.htm and click on the link to join.
Teleseminar Survey Results
I’d like to thank everyone who signed up for Tax Lien Lady's teleseminar series, How to Invest in Profitable Tax Lien Certificates and Tax Deeds. The results of the survey are in and the most popular day for the teleseminar is Saturday. The most wanted time was 10am - 11am, followed by 1-2 pm EST. In order to accommodate the large number of participants from California, I will be conducting the seminar at 11am - 12pm EST. Seven o'clock in the morning is too early to ask anybody to be up and attentive on a Saturday! The teleseminar will kick off on February 25th. The second class will be held on March 4th. Because I will be away the following week, the third and forth classes will be held on March 18th and 25th. See the teleseminar outline also posted today on this blog for an outline of what we will cover. This is just a general outline; I'm planning some surprises for you to really make giving up an hour of your free time on Saturday morning worth your while. You won’t want to miss it!
Those of you who signed up for the teleclass, keep your eye on your inbox for more e-mails from taxlienlady.com about how to call into the teleseminar. If you didn’t sign up yet, it’s not too late, just go to www.taxlienlady.com/teleseminar.htm and click on the link to join.
Happy and Prosperous Investing,
Joanne Musa,
The Tax Lien LadyAnswering Your Questions about Tax Lien Investing
Those of you who signed up for the teleclass, keep your eye on your inbox for more e-mails from taxlienlady.com about how to call into the teleseminar. If you didn’t sign up yet, it’s not too late, just go to www.taxlienlady.com/teleseminar.htm and click on the link to join.
Happy and Prosperous Investing,
Joanne Musa,
The Tax Lien LadyAnswering Your Questions about Tax Lien Investing
Monday, January 30, 2006
The Nassau County Tax Sale
New York is a mixed state where most counties have deed sales. Very few Counties have lien sales. The five boroughs of NYC do sell liens, but not to individual investors. Their lien sales are only open to a couple of fund companies. Nassau County has a huge tax lien sale once a year. This year’s sale will start on Tuesday February 21, 2006 and will run through Friday February 24th. You can find information on the tax sale on the county treasurer’s web site at
http://www.nassaucountyny.gov/agencies/Treasurer/Annual_Tax_Lien_Sale/ann_tax_lien_sale.html.
There are some important things to keep in mind if you intend to bid at the Nassau County sale. First of all you have to register in advance and there is a $100.00 fee for each day that you intend to bid. You can register at 9:00am before the sale, or you can pre-register online or by calling the tax sale department at 516-571-5023. You can purchase the updated sale list from Nassau County for $150.00. This list does not give the address of the properties only the tax ID numbers, you will have to cross-reference this list with county assessment information, which is
available on the county assessor’s web site at http://www.nassaucountyny.gov/mynassauproperty/. If you don’t have time for this part of your due diligence, you can buy a detailed property list from LienSource for $500.00 at http://www.liensource.net/.
Here are some other important tidbits of information that I have gleaned from the County web site and from subscribers in the NY area:
- You have to pay 10% of the amount due at the sale and the balance is due in 30 days.
- Even though the interest is bid down (it can be bid down to zero). The maximum interest rate (10% for each 6 month period up to 24 months) is still collected by the county. The difference between the interest bid and the maximum interest is known as the “differential lien” and must be paid to the county by the property owner upon redemption
or by the lien-holder upon application for a deed. - The lien holder may pay subsequent taxes, and will get interest on the subs, but only at the rate that was bid at auction.
- Liens are sold for school or county taxes but the individual municipalities
may have their own tax sales, so check with them to make sure that no
municipal taxes are due on a property that you bid on.
Note: Every effort is made to give you accurate and useful information regarding tax sales.
This information, however, is constantly changing and is only intended to be a guide
for educational purposes. It is no substitute for legal or financial advice, and no
guarantees are implied.
Happy and Prosperous Investing,
Joanne M. Musa,
The Tax Lien Lady
Answering your questions about tax lien investing
Tax Lien Consulting, LLC
mailto:joannemusa@taxlienlady.com
http://www.taxlienlady.com/
Friday, January 13, 2006
Update for Subscribers to Tax Lien Tips Newsletter
Hi, Joanne Musa, The Tax Lien Lady here with an update for subscribers to my Tax Lien Tips newsletter. I have recently changed my newsletter delivery service from Relevant Tools to 1ShoppingCart. As a result of this change you have been asked to confirm your subscription to my Tax Lien Tips newsletter. All you need to do to continue receiving Tax Lien Tips along with other news from taxlienlady.com about how to invest in tax lien certificates and tax deeds, is click on the link in the confirmation e-mail that was sent to you. You do not need to reply to the e-mail or fill in the form on the confirmation page that you are sent to when you click on the link. I apologize; I didn’t realize that the confirmation page had this form on it. Don’t worry if you did fill out the form, you won’t get duplicates of my newsletter. You will, however, receive my 5-week tax lien investing e-course over again. If you do not want the course again you can simply unsubscribe to it. There is a place to unsubscribe at the bottom of each lesson and it will not affect the delivery of your newsletters.
Keep your eyes open for the next issue of Tax Lien Tips. In the next issue I will feature an article by Texas attorney Darius Barazandeh about tax deed investing in Texas. His article will soon be available on the article page of taxlienlady.com. His course in Texas tax deed investing, Texas Houses for Pennies, is the only deed program that I use to help me with my deed investing. Texas Houses for Pennies is a complete course on how to invest in tax deeds. Although the program is written for Texas tax deeds (which are redeemable deeds) it can be applied to most tax deed states. I have found the information in this course to be very helpful for buying deeds in Pennsylvania. If you are interested in investing in tax deeds or redeemable tax deeds, this program is a must have along with my State Guide.
In my e-book, Tax Lien Lady’s State Guide to Tax Lien and Tax Deed Investing, you’ll find out which states sell liens, deeds, and redeemable tax deeds, and you’ll learn about the differences between them. You’ll learn about the bidding process in each state and who to contact for information about tax sales. You’ll also get valuable links to state and county web sites that will save you a lot time in your due diligence and in searching for tax sale information.
Joanne Musa is a Tax Lien Investing Coach and Consultant who works with investors who want to learn how to buy profitable tax lien certificates and tax deeds. She is the president of Tax Lien Consulting LLC, a consulting firm for tax lien investors.
For more information about Texas Houses for Pennies go to www.taxlienlady.com/texastaxdeed.htm.
For more information about Tax Lien Lady’s E-books go to www.taxlienlady.com/store2/sales.html.
Keep your eyes open for the next issue of Tax Lien Tips. In the next issue I will feature an article by Texas attorney Darius Barazandeh about tax deed investing in Texas. His article will soon be available on the article page of taxlienlady.com. His course in Texas tax deed investing, Texas Houses for Pennies, is the only deed program that I use to help me with my deed investing. Texas Houses for Pennies is a complete course on how to invest in tax deeds. Although the program is written for Texas tax deeds (which are redeemable deeds) it can be applied to most tax deed states. I have found the information in this course to be very helpful for buying deeds in Pennsylvania. If you are interested in investing in tax deeds or redeemable tax deeds, this program is a must have along with my State Guide.
In my e-book, Tax Lien Lady’s State Guide to Tax Lien and Tax Deed Investing, you’ll find out which states sell liens, deeds, and redeemable tax deeds, and you’ll learn about the differences between them. You’ll learn about the bidding process in each state and who to contact for information about tax sales. You’ll also get valuable links to state and county web sites that will save you a lot time in your due diligence and in searching for tax sale information.
Joanne Musa is a Tax Lien Investing Coach and Consultant who works with investors who want to learn how to buy profitable tax lien certificates and tax deeds. She is the president of Tax Lien Consulting LLC, a consulting firm for tax lien investors.
For more information about Texas Houses for Pennies go to www.taxlienlady.com/texastaxdeed.htm.
For more information about Tax Lien Lady’s E-books go to www.taxlienlady.com/store2/sales.html.
Thursday, January 05, 2006
Who's On Your Team?
By Joanne Musa,
The Tax Lien Lady
Have you been wanted to start investing in tax lien certificates or tax deeds but don't know where to start? Every successful endeavor requires a support team. Tax lien investing gurus make it sound so easy, you just go to the tax sales and buy a lien or a deed. But it's a lot more complex than what you hear about in those tax lien seminars. In fact, it takes a TEAM to be successful at tax lien or tax deed investing. So who is on your tax lien investing team?
You, the investor, are an important part of your investment team. You are the person who does the due diligence and purchases the tax lien certificates or tax deeds. You may be doing this all by yourself or you may hire someone to do the due diligence and bid at the tax sales for you. But you are making the decisions of what tax lien certificates or tax deeds to buy.
Your Title Searcher. This can be a title search company or an individual who does your title searches for you. Their job, in the case of tax lien certificates is to check on the title of the property before you start foreclosure proceedings. In the case of tax deeds, since you are actually buying the property, you may want to have a title search done before you bid on a property at the tax sale. You definitely need someone who can research property titles for you regardless of whether you are investing in tax lien certificates or tax deeds.
If you are using a title search company, there are different levels of title searches that you can get. For tax liens, you may only need the simplest and cheapest search. If more detailed searches are needed during the foreclosure process, your lawyer can order them from the same title company. Sometimes you may want to use different title companies to do different types of searches on the same property.
Your Lawyer. Most tax deed states do not issue a "warranty deed." This means that you will have to clear the title of the property before you can sell it to someone else. I recommend that you have a lawyer for this purpose. Although it can be done without a lawyer, if you miss any deadline or notification, you could lose your right to the property. The same goes for the foreclosure process on tax deeds. Although there are a few states that make this process easy for you, in most states this is something that you'll want to have a lawyer take care of for you. It's best to get a lawyer that specializes in tax lien foreclosures, otherwise the process could take longer and cost you more money that it should.
Your Rehabber. Properties bought at tax sales are often neglected. Typically if a property owner is not paying the taxes on their property they are not keeping up any maintenance on the property either and it may be in bad condition. If you acquire a property through a tax lien it could have been neglected for a long time since you have to wait out the redemption period before you can foreclose. Unless you know how to do the fix up yourself, and you have the time to do it, you'll need to have someone who can do this for you.
Your Realtor. Once you've acquired a property, whether it be from a lien or a deed, and you've done the rehab, you'll need to sell it or rent it to make a profit on your investment. If you don't have many properties and you have the time, you may want to do this yourself. However, if you are busy buying more tax liens and/or deeds, you may want to hire a realtor to do this for you. This will free up your time to spend on buying more profitable investments.
Other members of your successful tax lien/deed investing team may be your office manager - someone who can take care of all of your paperwork, such as recording liens or deeds with the county and paying subsequent taxes, your bookkeeper, and your accountant. These are things that you may want to do yourself or hire a professional to do, depending on how many liens or deeds you purchase each year.
Regardless of whether or not you've ever outlined all of the activities that are involved in creating and maintaining a profitable tax lien or tax deed portfolio, they do all exist. And if you've been wondering why your investments are not as profitable as you'd like them to be - it could be you've left out an important function and/or member of your tax lien investing team.
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Joanne Musa is a tax lien investing coach who works with independent investors who want to learn how to make profitable investments in tax lien certificates and tax deeds. Ms. Musa is the author of Tax Lien Lady's e-books.
The Tax Lien Lady
Have you been wanted to start investing in tax lien certificates or tax deeds but don't know where to start? Every successful endeavor requires a support team. Tax lien investing gurus make it sound so easy, you just go to the tax sales and buy a lien or a deed. But it's a lot more complex than what you hear about in those tax lien seminars. In fact, it takes a TEAM to be successful at tax lien or tax deed investing. So who is on your tax lien investing team?
You, the investor, are an important part of your investment team. You are the person who does the due diligence and purchases the tax lien certificates or tax deeds. You may be doing this all by yourself or you may hire someone to do the due diligence and bid at the tax sales for you. But you are making the decisions of what tax lien certificates or tax deeds to buy.
Your Title Searcher. This can be a title search company or an individual who does your title searches for you. Their job, in the case of tax lien certificates is to check on the title of the property before you start foreclosure proceedings. In the case of tax deeds, since you are actually buying the property, you may want to have a title search done before you bid on a property at the tax sale. You definitely need someone who can research property titles for you regardless of whether you are investing in tax lien certificates or tax deeds.
If you are using a title search company, there are different levels of title searches that you can get. For tax liens, you may only need the simplest and cheapest search. If more detailed searches are needed during the foreclosure process, your lawyer can order them from the same title company. Sometimes you may want to use different title companies to do different types of searches on the same property.
Your Lawyer. Most tax deed states do not issue a "warranty deed." This means that you will have to clear the title of the property before you can sell it to someone else. I recommend that you have a lawyer for this purpose. Although it can be done without a lawyer, if you miss any deadline or notification, you could lose your right to the property. The same goes for the foreclosure process on tax deeds. Although there are a few states that make this process easy for you, in most states this is something that you'll want to have a lawyer take care of for you. It's best to get a lawyer that specializes in tax lien foreclosures, otherwise the process could take longer and cost you more money that it should.
Your Rehabber. Properties bought at tax sales are often neglected. Typically if a property owner is not paying the taxes on their property they are not keeping up any maintenance on the property either and it may be in bad condition. If you acquire a property through a tax lien it could have been neglected for a long time since you have to wait out the redemption period before you can foreclose. Unless you know how to do the fix up yourself, and you have the time to do it, you'll need to have someone who can do this for you.
Your Realtor. Once you've acquired a property, whether it be from a lien or a deed, and you've done the rehab, you'll need to sell it or rent it to make a profit on your investment. If you don't have many properties and you have the time, you may want to do this yourself. However, if you are busy buying more tax liens and/or deeds, you may want to hire a realtor to do this for you. This will free up your time to spend on buying more profitable investments.
Other members of your successful tax lien/deed investing team may be your office manager - someone who can take care of all of your paperwork, such as recording liens or deeds with the county and paying subsequent taxes, your bookkeeper, and your accountant. These are things that you may want to do yourself or hire a professional to do, depending on how many liens or deeds you purchase each year.
Regardless of whether or not you've ever outlined all of the activities that are involved in creating and maintaining a profitable tax lien or tax deed portfolio, they do all exist. And if you've been wondering why your investments are not as profitable as you'd like them to be - it could be you've left out an important function and/or member of your tax lien investing team.
---------------------
Joanne Musa is a tax lien investing coach who works with independent investors who want to learn how to make profitable investments in tax lien certificates and tax deeds. Ms. Musa is the author of Tax Lien Lady's e-books.
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