OfflineWhen a property owner is late on paying real property taxes, the taxing entity (county or municipality) issues a tax lien on that property, while assessing an interest accrual penalty. The government could wait for the lien to be paid by the property owner, but in order to meet budget needs, would rather get the money now. In 32 states, a tax lien becomes a first lien on the property, and a certificate representing this can be sold at auction. Investors can then buy the lien (cash only) and receives the following in order:
1. Guaranteed yield from the lien, which the delinquent property owner must
pay in order the release the lien
2. Title to the property after an amount of time set by the local jurisdiction if the
property owner fails to pay (redemption period).
Tax liens are a very attractive investment for people who know how to find them and how to buy them right. The offer guaranteed income mandated by a government agency, and may lead to the title to real property at a substantial discount.
However, tax liens are not without their risks.
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 are some ways to locate properties that are dilenquent on their property taxes. Also, What information should I know about my state regarding tax liens?
Wayne
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