What is a Tax Lien?
How long have Tax Liens been in effect?
If property Tax Liens are so valuable why doesn’t
everyone invest in them?
How much money is needed to begin investing?
When I invest in a Tax Lien and the property owner pays
their taxes, what happens?
When I invest in a Tax Lien and the property owner doesn’t
pay within the redemption period, what happens?
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What is a Tax Lien?
A property tax lien is a lien against real estate,
which is created as an operation of law or by statute
to ensure collection of property tax. A real property
tax lien is a first position lien on real property.
Generally speaking, the property tax lien is superior
to all other liens and encumbrances on the property,
except liens or encumbrances held by the state and/or
liens held by the U.S. Government.
How long have Tax Liens been in effect?
This question, which we get a lot of, is very simple
to answer: Tax Liens have been available before the
United States was even a country. We’ll let you
do the math there. The point is that the wealthy and
knowledgeable have been using this investment strategy
to obtain and maintain their status for over 200 years.
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If property Tax Liens are so valuable why doesn’t
everyone invest in them?
The information you will gain from our product will
most likely be new to you, as it is to most of the people
who join our program. Although Tax Lien Certificates
are clearly the best and safest investment vehicle in
America today, there is no formal education about the
process. Realtors are not taught about them throughout
there training, stock brokers do not offer them, and
you don’t read about them in your daily paper.
Traditional investors, like the banks and insurance
companies have no incentive to “let you in”
on their investment strategies. In general, we “give”
our hard earned money to the banks for 3%, 4%, or 5%
returns while they use it to invest in Tax Liens in
bulk, all the while earning 16% to 50% interest.
How much money is needed to begin investing?
This is another very common question. This is one of
the better aspects of Tax Lien investments, they come
in everyone’s price range, so there is no excuse
not to start investing. On the low end, we have seen
individual Tax Liens for as low as $12.00. On the high
side, there are Tax Liens out there for up to $1,000,000.
Tax Deeds, on the other hand, tend to be a more expensive
with more competition. This is due, in general, to Tax
Deeds representing property ownership opposed to a lien
upon property taxes.
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When I invest in a Tax Lien and the property owner
pays their taxes, what happens?
When the property owner pays the county the taxes,
the county will then send a check to the Tax Lien holder
that will include principle plus interest and/or penalties
due. Remember, the property owner has a specific period
(redemption period, usually 1-3 years) to complete payment
to the county.
When I invest in a Tax Lien and the property owner
doesn’t pay within the redemption period, what
happens?
If the property owner does not pay the back taxes to
the county, the holder of the Tax Lien then has the
right to foreclose on the property. This does not mean
that you must initiate foreclosure as you may choose
to leave your original investment in to keep gaining
interest.
How many Tax Liens are available?
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