James Klobasa, once broke with no job and $20,000 in debt made a choice that changed his life forever. That choice was investing in Real Estate. With the founder of, The Little Building Co. you too, can learn at Real-Real Estate Investing
Posts Tagged ‘Certificates’
What Interest Rate Are Nj Tax Lien Certificates Generally Closing At In Your Township?
Sunday, January 17th, 2010What Do Suze Orman And Dave Ramsey Say About Investing In Tax Lien Certificates?
Friday, January 15th, 2010There’s a huge book I want to look for at the library that supposedly covers every aspect of this type of investment. Someone told me these two gurus oppose this form of investment. Why?
Are Purchasing Tax Lien Certificates In Florida A Good And Safe Investment?
Sunday, January 10th, 2010Real Estate Investing In Tax lien Certificates
Friday, January 8th, 2010It is, in fact, the certificate of purchase you as a purchaser get at tax sale. In this certificate, your ownership in the tax lien is documented. In fact, what makes investing in tax lien certificate such an attractive investment is the powerful bundle of rights that it provides to the investor.
The ultimate profit potentiality.
Being a professional and prudent investor, you can benefit from the ultimate profit potentiality of the Real estate Investing in tax lien certificates. If you stick to the basics, and work on a proper strategy, nobody can stop you from earning a huge profit. Since you just invest a small fraction of the propertys market value, you will earn a guaranteed profit on the transaction. Again, if the property owner has paid off the lien through investment, it can earn you a huge return on the original investment. If the circumstances go wrong further, the least you can get the full ownership of the property by foreclosing on the certificate. Overall, Real estate Investing in tax lien certificate is quite safe. You do not lose anything but you can gain much.
Headache-free investment.
Some investors take it in a negative sense that they do not get the ownership right over the property when they invest in tax lien certificates. However, if I show you the true picture, not having the ownership of the property in fact works in your favor. Since you do not get the ownership right of the property by purchasing a tax lien certificate, it gives a freedom from the liability of a landowner. You do not need to worry about the maintenance of the Real estate Investing property, or any other thing that is the headache of a landowner. Simply consider the rising lawsuits against property owners and you will understand the potentiality of this advantage.
Getting the ownership
At the time of the foreclosure of the property, you not only get the full ownership of the title but it also clears all other subordinate liens and debts related to the property.
Earn massive passive income
When you go for Real estate Investing in a tax lien certificate, you do not need to worry about anything. You just have to enjoy the benefits, and others will do everything else for you. It sounds funny, but this is what the ultimate passive nature of the investment in tax lien certificates is. You do not need to handle enforcement of the lien until foreclosure. The county will do it for you. In some states, they even handle the foreclosure process as well.
Purchase later year tax liens
If you act a little smarter, you can also purchase later year tax liens without any competition. If the delinquent property owner defaults on next years taxes, you do not need to participate in an action to purchase those tax liens. You can privately acquire the same. Spend some time and do your research thoroughly, and you can easily maximize the profit potentiality of your Real estate Investing.
Hence, when it comes to Real estate Investing in a tax lien certificate, the end result for an investor is always a profitable return, no matter what the outcome.
Tax Lien Certificates and Subsequent Tax Procedures
Thursday, January 7th, 2010Tax lien auctions have gotten more and more competitive in recent years. Some factors that have led to this trend include: more awareness among small investors because of new courses on the market, more Wall Street money entering the market and the new trend of internet tax sales.
If you have been to the tax lien sale lately you may have noticed something interesting. The big dog investors are bidding the properties down to next to nothing. In Florida, it’s very common to see properties bid down to one quarter of one percent. Has your banker gone insane? Or do they know something that you don’t?
It’s probably a little of both, or they are probably playing the sub tax game. What’s the sub tax game? It’s very simple, really. In many states, the regulations allow tax lien investors to pay the taxes for the following years, also called subsequent taxes. In other states, the investor is actually even required to pay the sub taxes. Even more interesting, many states also have minimum penalty statues on the books that make investing there very attractive.
For example, in Florida, it is very common for the tax liens to be bid down all the way to one quarter of one percent. However, Florida also has a 5% penalty clause and an 18% normal interest rate. So, in Florida, the investor will often buy the lien at the quarter percent bid. If the lien redeems in three months, then he has made a 20% return. Worst case, the lien does not get paid for the whole year and the investor still makes 5%, which is a lot better than bank cd’s.
Then, the investor has the sub tax rule to make up the difference. He simply pays the following year’s taxes and is at the full 18% for the sub lien without any competition. Not only that, he is secured by high quality real estate. The two liens together will average well over 10%. So, the investor either gets a nice high rate of return, or he gets a nice Florida house.
Of course, that’s assuming that a hurricane doesn’t blow the house down. Heck, he is even covered there, because the tax lien investor gets first dibs on the insurance money, ahead of the homeowner and even the mortgage company. What a deal!
So, as you can see, subsequent taxes are an area of tax lien investing where you need to know the rules and learn to play the game. If you do it properly, then you can make some huge profits!
Carlos Scarpero is an experienced real estate investor who specializes in land. On his blog at http://www.scarpero.com/real_estate, he discusses innovative and creative real estate strategies to make your real estate investing more profitable.
Avoid the Pitfalls of Investing in Tax Lien Certificates
Tuesday, January 5th, 2010Today bank accounts may not be safe, the stock market is volatile, and investing in real estate may not be a good choice. Buyers beware of new exciting ways to invest your hard earned dollars. Many companies are standing by to take your money by convincing you that what they have is a secret, or difficult to accomplish, or even worse, guaranteed by the government. Buying a home for pennies on the dollar is by far the most misleading advertisement on the market today.
Typically, you will be watching an infomercial, where a sexy lady is half undressed standing next to a supposed successful real estate investor.
Can Anyone Give Me More Info On Michigan Tax Lien Certificates?
Monday, January 4th, 2010My husband and I are looking for another way to make money we realize buying this type of a house would require us to do some major home repair but we are looking to do rentals and flips. Any help would be appriciated.
Can I Investin Tax Lien Certificates As An International Investor .do I Have To Be A Citizen ?
Sunday, January 3rd, 2010am not a citizen of america or canada and i want to invest in the tax lien certificate if it is possible ? and if so what requirements do i need and please be specific on which county you are talking about
Can I Really Make Money Purchasing Tax Lien Certificates?
Friday, January 1st, 2010What are the benefits of purchasing tax liens. Can a make a home business out of it?