I know that alot of people when you hear of a tax sale you think of bidding on houses and lots! But there is another way to make money at a tax sale.When a property is sold over the amount owed where do you think that money Goes? Yea I know you think the state gets it ! Wrong!The state gets it if nobody says anything.BUT Do You Know What? YOU and I get paid for giving those people that money over the starting bid amount!For Example: Todd lost his house at a tax sale, the starting bid is the back taxes of $700. But it goes for $20,000. 20,000-700=19,300. 19,300 is what the property owner is suppose to get back.19,300x20%=$3860 would be my fees!And the property owner would get $15440. Money they didn't know they were getting!Well If this sounds like something you are interested in drop me a line and maybe we could get started!sOMETHING FOR OUR GROUP TO THINK ABOUT!
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Great Idea!
I'm sure if the property was occupied or owned by someone local the state is probably required to attempt payment? Maybe not...
But I am sure there are plenty of things like this were the owner was deceased or moved (state lost track of them) and is just waiting.
People love found money!
tax lien properties
Hi:
I found a website the other day that is listing the properties on which taxes are owed. It gives the exact $ amount.
Is there a way to buy these properties?
Thanks.
Brigitte
Would you share?
I would love to obtain the address of that website. I would like to begin building a contact list of investors in several different areas but I am not sure how to do it on this website. You can't put your contact info in an open forum and to contact an individual through a PM to exchange contact info, the individual must be on online. Could you tell me the most expedient way to accomplish this task?
Thank you,
MDL
Now that you have the property,what?
Once you acquire a property, you have the options of: A) rent the property; B) sell the property; C) sell the property with a broker; or D) simply hold it for investment purposes. If you decide to use a broker to resell the property and do not know of anyone in the area, you can probably get a referral from your local title company. Another way is to just use one of the national brokerage firms like Centry 21 or Watson.
However, if you decide to sell the property "by owner", you will eliminate any broker commissions. This may be less practical where the prperty is not vacant land. For example, if you live out-of-state, how will you show the property? If the property is local or is vacant land, the sale by owner also has an additional benefit. Since you own the property outright, you can sell it with owner financing. For example, you could get10% down, and finance the balance at, 8% for 5, 10, or 30 years. If you don't want to wait this long, you can put in a balloon where the balance will be due in say, three, four, or five years. One thing is certain, that if you finance the property, you will sell it faster and can ask a higher price. You may use the lease option approach to entice renters/owners.
Now, if you choose the seller financing option and take back a mortgage and promissory note from the buyer, you have another option. You can sell that note for cash. You can even do a simultaneous close, where the sale of the property and the sale of the note occur at the same time. In actuality, the note is sold a few minutes after the property, but the seller leaves with a check in hand for the note.
How do you find these?
At the end of the year, our local newspaper prints out a list of homes that still owe taxes. How exactly would I find out if some of these homes were being sold because of unpaid taxes? At income tax return time, we have some money that we may be able to use to purchase one if not more of these homes. I just need help in how to obtain them.
terina32
terina32 this is how... you call your county tax assessor's office and ask them when do they normally have a tax sale? They normally have it about the same time ever year!And these people are super nice and they act like they want to help you! Hope this helps in some small way!
Legal Investment
Some are concerned about the legality of tax lien certificates. Have no fear, for every state has laws permitting this type of investment. For example if an owner does not pay the property taxes, the remedies are set forth in state law. Also, the statutory remedies almost never require any kind of formal legal action, but usually just involve legal notices and county-assisted procedures.
With excellent rates of return, strong collateral as security, no volatility, and these other benefits, tax liens compare favorably against the stock market and other traditionsl investments. With thes benefits, why is it that most people know very little about investing in tax lein certificates?
For one thing, this type of investment does not involve brokers. As such, you will not find advertisements in financial magazines touting the nice returns or other benefits of tax lien investing. In addition,the element of competition works to keep this investment secret. All tax lien sales are conducted with some sort of auction bidding process, so that the fewer investors at the event, the better returns or more liens one can buy. Therefore, every new person who arrives at the lien sale is a potential competitor.
Question on Darrellf334 example
Darrell, your example stated: "Todd lost his house at a tax sale, the starting bid is the back taxes of $700. But it goes for $20,000. 20,000-700=19,300. 19,300 is what the property owner is suppose to get back.19,300x20%=$3860 would be my fees!And the property owner would get $15440."
This sounds great but I don't understand how it works. Let's say that Mr. X is the buyer of the tax lien for $20,000. Am I correct in assuming that the full amount goes to the state and they pay off the $700 lien. Then the remainder of $19,300 goes back to whom? Mr. X or Todd. I guess I don't understand why there is an auction at all if most of the money get's returned.
I am very interested in this type of deal, and especially helping someone stay in their home.
More information please....and thanks!
hey holly
Holly it is suppose to go to Todd! And you get a % of the funds you recover!But the people here are giving it back to the Mr. X Making the rich richer! That makes me mad! I am going to put a stop to it here anyway!And the LAW clearly states it goes to the property owners!
darellf334
i would like more info on this strategy
2010
Hi
Is anyone buying tax liens at present?
Not yet but would like more information
I don't know if this reply is going to be public or private. When I attempted to answer your request, the reply took me to this page but I am not familiar with the process. I would like to communicate and build a contact list of investors but I am having great dificulty navigating this web site. Please PM me or send a private email.
Thanks,
MDL
yes
yes all the time!Still have to look them up!
Tax Sales In NJ ??
Tax sales in NJ are done by town not county. Does anyone know of a website that shows the dates of each towns tax sale dates? My county alone has 44 towns(Morris).Each holds their sale at different dates and advertises them in different publications.To my knowledge you have to show up at the date of sale or else it reverts back to the town.
If ANYONE has some information on this it would be much appreciated.
Check the Morris county,NJ website
It is may understanding in NJ things vary by
Municipalities you may find updated info on
www.co.Morris.nj.us/generalHTML/municipalities.asp
Good Luck!
Rosemary
Property World