OfflineRedemption periods vary from state to state as do actual interest rates, yields and penalties. In some states the property owner has two years in which to redeem the certificate for the property. In other states, the property owner is not required to pay it off for a five to seven year redemption period. Using the redemption period to your advantage can significantly increase the yield you earn.
During a redemption period the property owner must repay the tax, plus interest, to the county tax or treasurer’s office. Upon redemption, the county tax office will then make payment to you by check for the amount you paid for the certificate, plus interest or any penalties.
Before buying in a particular state or county, find out what the yield is. Determine if there is a penalty for early or late redemption. Contact the county tax office to verify the details of the sale. A combination of yield, penalty, and terms of the redemption period can help you find the best returns on your tax certificate.
In addition to being able to increase yield, redemption periods are significant for another reason. If a property owner doesn’t pay off or redeem the certificate within the redemption period. You can foreclose out the right of redemption. You could end up with the property free and clear!
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
Can you pay tax liens any day if the week/month?
There may be more to the question that I am missing.
If you are the person that owes the taxes you can pay your tax lien anytime. Well...minus the days the government does not work. Then again do they work? You can call your assessors office and set up the payment. The assessors may direct you to another division that handles the payment.
If you are buying the lien the state will set up an auction date for the liens. These liens are often sold yearly and sometimes monthly such as in the state of Texas.
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
Here are the 10 steps:
1. Research – Consists of identifying areas where tax sales exist and the specifics of each sale.
2. Outreach – Process of determining how to reach the county agencies that hold tax certificate sales in which you want to participate.
3. Contact – Process of contacting the county agencies that hold tax certificate sales.
4. Preliminary information – Consists of gathering data about the tax sale and properties ibn which you are interested.
5. Determining yield – Where you calculate the factors that will affect your return on investment.
6. Evaluating redemption periods – Process of analyzing how the investment is affected if the tax certificate is paid off early or how long before foreclosure can occur.
7. Estimating property value – Where you identify the properties that will produce the highest return.
8. Methods – Process of identifying the impact that the various methods for selling tax certificates will have on the outcome of your return.
9. Application/commitment – Involves making the sale, following through on the paperwork, and closing the deal.
10. Payment – This is when you pick up the check at the county tax office, sell the tax certificate on the open market to another investor, or sell a property after obtaining the deed.
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