picEver heard of the term tax liensTax Liens are actually a guaranteed investment that anybody can very well do. So what are tax liens? Tax liens are actually rights imposed by the law to liquidate an individuals property until the debt has been paid completely. By having the property restricted by limiting the ability to use it as collateral or having the title transferred, an investor can be fully assured that he will be paid for a debt.

Now tax liens can be placed on a personal real estate property and by that, the most common would be mortgage. Other kinds of liens include attorneys liens and mechanics liens and every single one of these tax liens have different deadlines and rules. Take note though that counties and states also have different tax lien rules.

Most tax liens are divided into either legal liens or federal liens and equity liens. While federal liens are law enforced, equity liens are only valid in a court of equity.

In order to have a valid lien, always make sure that the person or lender who was able to acquire it holds complete ownership of the property. The person also needs to have the right to claim the lien and that the lien is placed in a mode of payment agreement by the two parties.

So what are the reasons of why tax liens are attached to real estate or personal property? First, in order to pay a tax debt. Second, in order to pay for the labor services, and third, for mortgages. However, you must remember that placement by third property is forbidden.

Furthermore, when liens are paid in full or through agreement of two parties, it is then when liens are waived. But when the liens are unpaid, the holder may then take the property in possession in reference to the local lien rules and laws. Whats good about it is that tax liens can be sold in auctions to investors.

Benefits from Investing in Tax Liens

It is no doubt more and more people are getting on their way to learn more about acquiring tax lien certificates. Why not? Experts usually agree that the most secured and most profitable investment would be the real estate business. It is rather important to understand how things work around in purchasing homes at low prices and then have them sold at much higher rates. But did you know that that you can actually invest without having to buy the property itself? Thanks to tax lien certificates.

Real estate owners have responsibilities of paying their properties real estate taxes and if somehow they are not able to pay within a time frame, the county will then place a tax lien on that unpaid property. Now, in order for the county to be able to fund services for the community, the county then sells the tax lien certificates at auctions. And this is where you come in.

If you want to earn something from these sales, make sure to win at one of the counties auctions. When you win, you have to pay for the amount that is owed by the property owner to the county thus providing the government the fund it needs to serve the community. With this, you will get a document that will entitle you to claim the money paid by the property owner along with an interest.

Now there are circumstances wherein the owner will not be able to pay for what he or she owes so the tax lien certificate will give you the ability to foreclose the property and thus providing you the benefit of reselling it. It is indeed a win-win situation as it doesn’t require you to have a huge capital unlike investing in other properties. So if you want to get into real estate investments, learn and understand more about tax lien certificates.

All You Need To Know About Tax Liens

Ever heard of the term tax liens? Tax Liens are actually a guaranteed investment that anybody can very well do. So what are tax liens? Tax liens are actually rights imposed by the law to liquidate an individuals property until the debt has been paid completely. By having the property restricted by limiting the ability to use it as collateral or having the title transferred, an investor can be fully assured that he will be paid for a debt.

Now tax liens can be placed on a personal real estate property and by that, the most common would be mortgage. Other kinds of liens include attorneys liens and mechanics liens and every single one of these tax liens have different deadlines and rules. Take note though that counties and states also have different tax lien rules.

Most tax liens are divided into either legal liens or federal liens and equity liens. While federal liens are law enforced, equity liens are only valid in a court of equity.

In order to have a valid lien, always make sure that the person or lender who was able to acquire it holds complete ownership of the property. The person also needs to have the right to claim the lien and that the lien is placed in a mode of payment agreement by the two parties.

So what are the reasons of why tax liens are attached to real estate or personal property? First, in order to pay a tax debt. Second, in order to pay for the labor services, and third, for mortgages. However, you must remember that placement by third property is forbidden.

Furthermore, when liens are paid in full or through agreement of two parties, it is then when liens are waived. But when the liens are unpaid, the holder may then take the property in possession in reference to the local lien rules and laws. Whats good about it is that tax liens can be sold in auctions to investors.

Start Your Way towards Tax Lien Investing

Issued by counties all over the country for the unpaid property taxes every year, tax lien certificates are then sold to investors once or twice a year. In order to acquire a tax lien certificate in most states, you must have a Tax ID or an Employee ID and a Social Security Number.

Though there may have been a couple of talks for the past year about this lifetime opportunity, not many people are able to fully gain something from investing in tax liens. Therefore, it is deemed important to learn much about it before moving on to the next step.

It is a well-known fact that tax lien certificates are indeed wonderful investments for an individual who thoroughly realizes the rewards and risks of acquiring tax liens. Aside from the fact that you are already getting a lot from the 18% interest rate being paid consistently, you also have the rare luck to be rewarded with a Pennies on the dollar real estate which comes in the form of a tax deed. Just make sure to spend time to research more about tax lien certificates and learn more about investing in properties so as to make the most out of everything.

Informational DVDs and audios, helpful blogs and websites, self-help books, guides to investing, and even asking experts will truly help you on your way to tax lien investing. As you gain more knowledge and confidence, everything will then become easier for you as you are able to concentrate more on living life just the way you want it.

Tax Lien: An Opportunity You Wouldn’t Want to Miss

Are you currently stuck with a job that is low-paying and stressful? If given the chance, would you want things to have gone differently? If you say yes to these questions then you might as well take time to realize other opportunities that will provide you the growth and satisfaction that you so well deserve.

Think tax lien investments. Individuals who think ahead of their game not only find this lifetime opportunity secure and safe but fast and simple as well. It is your one sure shot of earning more than you are expecting, way more than what you are currently earning at your 9 to 5 job. Sounds interesting? Read on.

If you think tax lien investments are just the same with house flipping wherein you have worry about remodeling and initial purchasing and getting stressed whenever the market’s going down each time, well, you’re definitely wrong. With tax liens, you are assuring yourself a risk-free investment and definitely giving you the ultimate freedom to enjoy your life more.

Different from purchasing a property outright, tax lien investing involves having the individual paying the property owner’s tax bill while at auction with the guarantee of being paid back in a timely manner along with interest.

Now if the owner of the property somehow fails to pay the certificate owner within a schedule, the tax lien certificate owner can then take ownership of the property and can then opt to have it auctioned or have it sold to an investor or to the real estate market (and even have the ability to do some upgrades and repairs).

Before heading directly to your local county’s tax lien auction, you might want to read on some tips:

  • Make sure the property is worth more than the owed taxes.
  • When attending tax lien auctions, bring cash on hand.
  • Know the rules and regulations of acquiring tax lien certificates in your area.