Tax Lien Investing made Easy!

Tax liens and tax deeds have always been an exciting way to profit from real estate without actually purchasing property.

In recent years, their popularity has increased, primarily due to high interest rates.

Purchase the tax lien certificates then wait till the property is sold.

Unless you have an Investor willing to buy your certificates for comparable returns of what you expect at the sale of the property.

Tax Liens are a very solid investment with a guarantee or return.

For example, if the original owner tries to sell the property, the buyer will require that all back taxes and tax liens -- as well as interest due any lien holders -- be paid in full.

When it appears that the lien might not be satisfied, either because the owner cannot be located or cannot or will not sell the property, the law gives the lien holder the right to foreclose after holding the lien for at least two years.

It's possible to earn 18 percent every six months on a tax lien and in Texas, you can earn a 25 percent every six months in the form of penalties on a tax deed and have the potential of redemption on investment properties.

These attractive yields have caused an increase in attendance at the auctions.

Oddly though, the number of active bidders has not risen proportionately.

It's common to see 40-60 people at a sale, generally only a fourth or fewer will ever bid.

A Tax Collector recently held a mini-class on the tax lien sale process in his county prior to an actual tax lien sale.

The class was attended by about 25 people, and was informative, but the tax collector's presentation scared most of the prospective investors out of bidding.

If you attend such a class, (which I recommend you do) you're unlikely to get the degree of education you need to be a savvy, confident tax lien investor.

Most tax sales require a deposit equal to 10 percent of maximumbidding in cash.

If you place a $1,500 deposit, you’re assigned a number, and have the potential to win up to $15,000 in tax liens.

The bidding is usually fierce and competitive.

The top five tax lien investing companies always send four or five people to bid.

So the yields are usually driven down a bit.

Use strategies so you’re able to make money.

Rather than bidding against the big guys and driving down the interest rates, Wait for the properties that were bid on by local investors.

Tax collectors usually make sure that local investors get at least a few liens each at a strong rate of return; this is a common approach at live sales.

Advice to be successful in Tax Lien Investing

Buying Tax Liens in the Virtual World

It's a little different-but still potentially very profitable-when the tax lien sale is online.

It's not always easy to figure out how the tax liens are awarded in an online sale; you just have to place your bids and see what happens.

It is becoming increasingly common for tax liens to be soldthrough online auctions, people who want to actively invest in tax liens but find it impractical to travel to different states for sales are now able to take advantage of some great investing opportunities.

Single parents, stay-at-home mothers, caregivers to the elderly or infirm, or people who for whatever reason are unable to attend tax lien sales are now able participate in this lucrative investment opportunity.

You can check out the properties and place your bids online any time of the day or night.

You can wire the deposit the tax collector as required, and end up with tax liens which usually have an average interest rate of 17.25 percent-not a bad return for a couple of hours at a computer.

Anyone can make money with tax liens and tax deeds if you understand the process and have confidence in your ability.

It's reasonable to expect returns of 18 percent or better if you follow the proven techniques that allow you to successfully compete against the large corporate investors.

Study the market and understand what type of deed it is and then bid. The money will start rolling in. Val's FREE E-Book