OfflineThere are different ways to invest in real estate. Some people prefer to invest in single family homes, while some prefer multi-family homes or apartment buildings and some may even prefer commercial buildings.
However there is a type of real estate investment that has the best bargains and yet
remains the least known and understood in the industry. It is tax lien investing. There are some investors who have made millions by specialising on only tax lien investment.
A tax lien is made possible when a real estate owner had not been paying taxes on his real estate. This could be due to several reasons.
Abandoned properties
The owner had passed away
There are several years of unpaid taxes
When this happen, the local government or county will put a lien on the real estate for unpaid taxes and put it up for public bidding. This is when investors can seize the opportunity to invest in the real estate and start collecting the unpaid taxes with interest from the real estate owner. And if the lien is not paid after a certain period of time, the investor can take the opportunity to foreclose and take over the property for just the price of the unpaid taxes which is usually at a fraction of the total construction cost. As a new owner, the investor can now choose to sell the property in the market and profit from the sale or choose to refinance the property to purchase more properties.
Risks of Tax Lien
Despite being a very lucrative investment, there are however several points to note with regards to investing in tax lien because foreclosures can be very difficult or cumbersome in the following scenarios:
If the property owner files for bankruptcy
If the property owner is a military personnel
If the property owner lives overseas
If the property is a minor
If the property is mentally challenged
Therefore due diligence must be done prior to any investment in tax lien to prevent falling into any of the above awkward situations and other owner problems because lots of public information about the owner of the property is available at the county assessors' office. Additional information like bankruptcy filing or other outstanding liens is readily available at the bankruptcy court or country treasurer.
Bear in mind that real estate investment is not a race. Always take time to do your due diligence. dbrown
Thanks Randy, I've wanted to learn more about them..
Dan in Seattle..
Thanks for this post. This is an area that I studied long before I got involved with DG. Gives me some ideas to pursue.
Karen
"You're never too old to be what you were meant to be!"
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"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
Tax Lien Investing if my memory serves me right..... Was a product available at the seminars Dean once had when he went to different cities, will this product come back Randy Bailiff?
Watch your thoughts, for they become words.
Watch your words, for they become actions.
Watch your actions, for they become habits.
Watch your habits, for they become character.
Watch your character, for it becomes your destiny.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Our Heart's Desire must be nurtured by our mind,to give birth to common sense, that will enable us to seek out the path less traveled, with the greatest Personal Growth. -J.R.-
Are there any programs/products that you know of that assist someone trying to start tax lien investing or tax deed investing? Seem like it could be a money maker. However, where does one begin with this field? Especially interested in doing so at a far distance (states away from the property).
Has anyone tried such and what was your experience? Thanks.
When Dean has seminars in different cities that is the time to capitalize on the products offered I saw one of these tax liens just before hurricane sandy oncurred in NY so stay vigilant
Watch your thoughts, for they become words.
Watch your words, for they become actions.
Watch your actions, for they become habits.
Watch your habits, for they become character.
Watch your character, for it becomes your destiny.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Our Heart's Desire must be nurtured by our mind,to give birth to common sense, that will enable us to seek out the path less traveled, with the greatest Personal Growth. -J.R.-
Thanks for that info., but anyone have a quicker answer?
http://www.deangraziosi.com/forum/37
Remember to click on the "Real Estate Forums", (upper left)or use the search box
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools