OfflineTax lien certificates can be assigned to another party. Let's say you have a buyers list of people that want a great rate of return or want to get certain types of properties. If you have these people on your buyers list, you now have a group of people that you could potentially assign a tax lien certificate to.
Obviously you would want to make sure these people are interested in the county you are buying these in, the collateral for the tax lien, and that you know what rate of return they want for their investment.
There are no guarantees that when you buy a tax lien certificate that you are going to get the property. Infact the higher the quality the property the less likely you are going to get the property. It will most likely be redeemed by the tax payer or other lien holder recorded on title. (Current market conditions are a bit more unique, but still no guarantee). So you want to make sure you let them know there are no guarantees that property possession will result, but if nothing else at least a great return.
Okay, so back to the assignment of these. There would need to be some due diligence on your part, but you will want to ask the county if they allow assignments and if there is a grace period to do so. Also, you will want to make sure you know the process to execute this too.
In most cases, I have seen a grace period of 6 mos to a year before you can assign them. I have seen there be a fee charged to do this and documentation required by the county on the party the tax lien certifcate is being assigned to. In most cases the county is going to make sure the party it is being assigned to does not have any outstanding taxes or other fees due to the county.
You can then sell the tax lien certificate to the new investor who is on your buyers list for a fee that makes sense to you and them.
All in all, it is a great way to get out of a tax lien certificate before the redemption period ends with your money and some profit. It is a great way to get properties to investors who do not understand this niche and might be looking for properties to pursue that are in some sort of distress.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
What exactly are tax lien certificates and what are the benefits of pursuing them ?
Thank you,
-Gabriel Do Carmo
"You deserve to be successful"
Gabriel Do Carmo
www.gdc.usapropertywholesale.com
A tax lien ceertificate is when the home owner has not paid the taxes that are due yearly. The county will then aution off all the unpaid property taxes, creating a tax lien against the property. Tax liens will get the priority over any other liens except for IRS liens.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
If you choose to pay off the tax lien, do you take possesion of the property just by doing so? Im guessing not ?
-Gabriel Do Carmo
"You deserve to be successful"
Gabriel Do Carmo
www.gdc.usapropertywholesale.com
Hi Gabriel, tax lien certificates do not give you possession of a property. You have a claim on the property if you purchase the tax lien. States vary on the method the tax lien holder uses to enforce their lien. This is called the redemption period. It can be as short as ninety days to over three years. State statutes set the redemption period. Tax lien certificates do require cash. You must pay the county to acquire the original lien, usually the amount of the delinquent property tax on the property. The tax lien certificate holder is compensated by receiving their purchase amount back plus interest if the property owner redeems or getting ownership of the property if the owners don't redeem the property.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Thank you! Sure cleared up my mind. So, if you were to purchase a tax lien certificate, you wouldn't get the benefits until the time comes ? Basically this is a long term commitment, in order to be worth it ?
Thanks alot,
-Gabriel Do Carmo
"You deserve to be successful"
Gabriel Do Carmo
www.gdc.usapropertywholesale.com
Your benefit would be the interest earned on the initial tax lien investment. Some states do allow you to protect your interest by fixing situations that could damage the property but you need to be cautious about investing much in doing it. If the owner redeems, you would not be entitled to recover your expenses or labor. A story from a client: The client bought a tax lien on a property, the owner had supposedly moved out of state. The roof was in horrible condition so the tax lien holder replaced the roof. He did all the labor himself so he was only out the cost of materials. The owner returned two days before the redemption period ended, paid the back taxes and moved into the property. The client was pretty philosophical about the deal. He said if he hadn't fixed the roof, the house would have been ruined and have no value. The intrest he earned covered a portion of his costs and he moved on. I would note that he never bought another tax lien. The moral of the story: be careful doing any repairs on property you don't own.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Wow, great story and definitely means alot. Thanks for sharing that info with me.
-Gabriel Do Carmo
"You deserve to be successful"
Gabriel Do Carmo
www.gdc.usapropertywholesale.com
What is the difference between Leins/Deeds? My state is a Deed state now. What to know how to move forward.
Erika, REI
Brownstone Investment Group
405.748.0734
www.facebook.com/Erika.Coleman
www.twitter.com/brownstoneREIgr
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