Occupied Property Strategies & IRS Liens | ustaxlienassociation.com

Occupied Property Strategies & IRS Liens

Our 3-day intensive workshops are gold mines for article ideas. By the time you read this article, I will have just finished speaking at a workshop in Cleveland, OH. To take my mind off of the cold weather, I took a moment to write this article about our solutions to a couple of helpful questions.

Question #1: It didn’t take long for a student to ask, “what do I do if I acquire a tax deed, and the property is occupied?” While this rarely happens it is possible. Approach this scenario by opening a dialogue with the occupants. One way to do this is to send them an eviction notice that simply states the ownership of the property has changed, that you intend to evict them, and your contact information. This notice will prompt them to contact you. Once a dialogue has been opened you can determine what plan of action is in your best interest. What I mean by this is that evicting them is not your only option. In fact, having someone already living in your new property could be very beneficial.

One option to consider is renting to them (it is likely they were renting before you acquired the property). Inquire about their old lease terms if relevant, and if it is something that you would change or continue with. If they want to buy the property, consider owner financing. If you do decide to sell the home on the open market then ask them about what needs repairs. They would know best! Making the repairs will make for happy renters, improve the properties value, and save you from later headaches.

Question #2: This next question is probably something even you have wondered about. “Should I stay away from properties that have IRS liens?” To begin, when an IRS lien is on a property it means that the owner did not pay their federal income taxes. The IRS is very powerful and has many ways to get the money they are owed. This includes putting a lien on everything someone owns. An IRS lien is of no consequence to you as an investor. If you are buying a tax lien on a property and it redeems, you will receive your money back with interest. The IRS lien does not affect this process.

Now, let’s consider the possibility of an IRS lien on a tax deed property you want to buy. If the property is for sale then the county has already notified the IRS of their opportunity to claim it. The IRS now has 120 days to act. If they do and you have already purchased the property then the IRS must reimburse you. There is no way you could possibly lose in either of these IRS lien situations.

Thank you for taking the time to read my articles, please comment below if you have any additional questions. If you are interested in attending one of our workshops, do not hesitate to call our office today for more details.

is the Co-Founder and Co-Chairman of the United States Tax Lien Association, which is an organization that is committed and dedicated to helping others achieve total financial freedom through the power of investing in Tax Lien Certificates.  With over 20 years of expert experience, Tony is the worlds #1 authority on the subject of creating enduring wealth through the little know strategy of investing in Tax Lien Certificates, which gives anyone the opportunity to earn guaranteed fixed rates of returns of 18% – 36% interest per year, and acquire valuable real estate for approximately 10% of market value.

Leave a Comment