Investing in tax lien and tax deeds is not free from risk. Some tax lien scam artists might make you think this, but here at the US Tax Lien Association we educate our students about the kinds of risks and how to avoid them
Some of you may have sworn off renting your properties, I mean, we have all
had bad experiences with renters. But realistically
, some house purchases warrant renting.
It always surprises me when I speak to people about their reasons for investing in tax liens and tax deeds, and they say they began doing so because they can work from home without having to speak with people.
It is becoming more commonplace for landlords or management companies to report rent payments to the credit bureaus. This is actually very advantageous for those who rent and are looking to buy in the next few years...
What often attracts people to investing in tax liens and tax deeds is the opportunity to be self-
employed. Yes, you can simply invest retirement funds within your qualified retirement plan and
not worry about tax implications, but for those who want to make a living in real estate it is
important to understand there are very different tax obligations for self-employed individuals.
While tax deed investing is a viable business, there are many myths
floating around regarding how to go about it, as well as what types of returns to expect. Many industry gurus with little to no experience scam people by touting the extreme profits
one can make off of a single property instantly.
Due to Saen Higgins’ and my encouragement to think outside of the box
when it comes to real estate investing, I’ve been hearing a lot of short-term rental talk in the USTLA community. Some of the more popular pitches are renting through Airbnb
, and Homelidays
Few people know how great Michigan is as a tax deed state. It’s just so accessible to investors not only locally but those across the country as well.
Most auctions are held simultaneously both live and online through Tax-Sale.Info.
When asked, many of our students say there are advantages to working with their partner
. In fact, if you’ve attended one of our events you may have seen us support business partnerships between couples. Why is this?
Well, for one thing you absolutely have to have your partner’s support with any new business venture. And
There is nothing quite like summer. It is the perfect time to explore opportunities, reach new heights, and enjoy those sought after destinations
. Possibly fueled by the warm weather, this is the time we seem to push oursleves a little harder to achieve our dreams
. Now is no better time to put your tax lien...
The season of giving is upon us! We walk with an air of cheer, we allow ourselves some time off, and the stresses of everyday life are put aside. As you go about your business during the holidays, consider being generous to yourself. You know as well as anybody how hard you have worked this...
The internet is a vast space
that can be difficult to navigate. Despite the challenges and learning curve for some
, it is necessary for you to familiarize yourself with it if you want to participate in online auctions.
Many of our students begin their tax lien and/or tax deed businesses by investing in properties auctioned online
With the holidays approaching fast, now more than ever we see our students make excuses
. Levels of tardiness or cancellations of mentor sessions increase and less research is completed. It’s almost as if our students think it is time to hibernate! Stop making excuses and instead remind yourself of why you are seeking financial freedom
It’s that time of year! As soon as summer turns to fall, you should be thinking about Colorado’s annual tax lien sales
. They typically take place in the months of November or December each year
. What may come as a surprise to you is that Colorado tax lien certificate interest rates can vary from year to year.
Long-term mental acuity training is important because today the world is changing faster than ever
. Not only is work more demanding, but personal relationships are as well
. We need to be flexible and adaptable in order to stay sharp and relevant. No matter your age, now is the time to begin conditioning your mind for long-term acuity
I wish every county in every state used the same terminology when referring to tax liens and tax deeds. It would also be helpful if all of the rules governing the sales were the same. This is not the case however
, so learning those unique languages and rules is a critical step to mastering any region
No matter how far away your retirement date may seem, you need to start thinking about it now
. Actually, don’t just start thinking about it, plan for it
. I know many of you are thinking, ‘that’s why I’m here isn’t it?
Every week I see students decide to go into the tax lien and deed business with their life partners. This is a really big step and can be highly rewarding
. Tony and I know that jumping into a new endeavor can be stressful, and there is nothing like having the support and help of the
For those who don’t want to spend the time or money to rehab a tax deed property…maybe wholesaling the property for a quick turn around is the exit strategy for you
. Wholesaling is when you sell the property below market value to another real estate investor for a quick profit
. The advantages of wholesaling are
There are always obstacles along the way to success. In every endeavor, there are hiccups that need to be handled professionally with the will to never give up. Follow the path of resistance
, as the alternative is to continue to be unsatisfied with your current situation. Whether it is a job you want to leave
At the 2016 VIP success party I shared many personal stories and methods for success. One of which was my journey to achieving a better state of health
. While I did not outwardly appear unhealthy, I was in fact experiencing low levels of energy, and I was tiring easily…simply playing with my children was taking
One of the many appealing things about building a business in tax liens or tax deeds is that you can work autonomously as your own boss
. You can work the hours you prefer, take what time off you want…and enjoy financial freedom
. Real success in this business, as in any business
, requires that you build
It’s a common misconception
that all counties within a state operate by the same uniform laws and regulations. Yes, state law governs the county tax auctions, but how those laws are interpreted is not uniform. This is especially noticeable when it comes to how the auctions are conducted
. This is not to mention that the
If you have ever felt writers block, then you know there is nothing worse!
The same can go for picking a county to begin researching for tax lien certificate or tax deed investment opportunities.
We should always be looking for ways to lower our costs
. Improperly managing home expenses can reduce funds available for other investments, including tax liens or deeds and a higher education. Taking a moment to think about where you can not only cut funds, but also prevent expenditures
, is an important
One goal for today’s article is to introduce you to a state
you may not have considered investing in before. It’s important to always keep an eye out for potential new markets
, or states you can master and build a team in.
One aspect of the business that is most often overlooked is that of organization
. Tony and I always speak about blocking time at our workshops, just about all three days of the event!
Yet in general, students still struggle with making time for research, auctions, networking, and other tax lien and tax deed investing responsibilities.
A few months back I wrote an article on how to build relationships with realtors, and what to expect from them. While the feedback for that article was positive and proved helpful to many students, I wanted to address a strongly related subject today.
How do you find a realtor to call in the first place?
In my articles I often share key practices. Today is no exception
. Correct me if I’m wrong, but do you ever feel bogged down by the sheer amount of tax lien and tax deed lists there are to research?
As well as the endless amount of properties found on those lists?
Saen and I have been in business for over 20 years now. After all that time I am very aware that while we may be experts in the field, and we have highly trained students reading our blog articles
, it never hurts to talk about the basics. This is not to mention of course that we have new members joining us daily, so if we were to assume everyone has the same level of knowledge regarding tax liens and tax deeds then we would be providing a disservice. And that we will not do!
Every county that holds a tax lien or tax deed auction has a set of rules to guide buyers
. So, every single time I study a new market, I check two best practices off of my to do list. Admittedly, the first step has multiple small steps within it… but you will get the idea
Focus on making a deal, not finding one
. What I mean by this is have a detailed plan before you buy. I have had more than one student tell me that it isn’t possible to have a strategy before buying an investment property because you just don’t know what you are getting.
Realtors are very helpful when it comes to the business of investing in tax liens and tax deeds
. They should have a wealth of local knowledge, such as where new infrastructure is being built, what areas are in demand, where the good rental vs selling markets are… and if you are interested in acquiring properties to sell
Your ability to estimate the value of a property
in this business for obvious reasons. For out of state, foreign, and even domestic investors, how do you determine the value of a property?
What factors affect value? I will discuss some of our methods to collect the data that will help you determine
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.
Our clients are increasingly purchasing properties out of state. Implementing improvements or repairs on properties that are not within easy reach can seem intimidating. As always, I want to alleviate these worries and describe our strategies that will make long distance tax deed or lien investing seamless.
The mistakes I will discuss in this article are deadly because they are self inflicted
. You should never block your own path to stability and financial freedom
, yet we see this happen frequently. There is never a legitimate excuse or reason not to move forward with your tax deed and tax lien investing business. Below are 5 mistakes
we hear and see on a regular basis.
As 2016 quickly comes to a close, I have been thinking a lot about how often Saen and I discuss actively improving our own lives…and how we encourage our students to do so as well
. We frequently explain our methods for self-improvement, how we set and meet goals…how we strive to live the lives we
Lately I have been getting a lot of questions about the days leading up to an auction
. Aside from completing your due diligence, what do you do when you get to the auction location? How do you prepare?
My time and money saving tips explained in this article could increase your chances of success
, leaving more time for you to enjoy the process.
As you get started in your tax lien and tax deed investing business, you will discover what areas of the country really work for you over the next 6 months to a year. Each member of USTLA has had great success in specific or general areas
. Steve Clements (one of our senior trainers)
has done well in Texas, Mario Michael (a student and now, our newest coach and trainer)
has succeeded in Florida, and Ed Mitchell (a senior coach)
In the beginning, Tony Martinez and I had no experience…just a few hundred dollars in our pockets and not much else
. At that point, I had not even purchased my own home. After my mentor introduced me to the idea of investing in tax liens and tax deeds I started researching almost non-stop. It didn’t take
I am frequently asked which state is the best state to begin
with as a new tax lien or deed investor. The answer to that question really depends on a number of variables. The correct answer is likely to be different for every investor depending on those variables
. Some of the variables to be considered when choosing a state include accessibility, information available online
Here at USTLA we expect our employees to actively research Tax Liens and Tax Deeds. One of our employees, Fallon, attended an auction just this past week in Ohio, and her experience with prepping for the auction holds an important lesson. I had her write about it so that you could learn from her experience. Her article is below, enjoy!
Everyone wants to be successful with every investment they make. The fact is, no one is perfect and as humans we all end up making some mistakes
. In this blog post I want to explain what I do to avoid making costly errors
when evaluating tax liens or tax deeds.
There are six states that offer redeemable deeds to investors
. The states are Connecticut
, Rhode Island
, and Texas
. None of the state’s offering redeemable deeds conduct their sales online.
That means that the investor will have to either attend the sale in person or obtain the services of a proxy to bid
We have so many students walk into our highly educational seminars asking the same
question, “how can I invest in tax liens and deeds if I have no cash?” We do offer higher-level
training that will introduce students to strategies involving raising investor funds, but today’s
article isn’t about that.
One of my favorite investment vehicles within the arena of property tax related investments is the redeemable deed. In my view, a redeemable deed offers the best features of a tax lien and a tax deed
A redeemable deed is similar to a property tax lien in many regards. They have a redemption period
, which is a grace period in which the property owner can pay their taxes and retain ownership of their property.
I always remind our students that property taxes are very important; the revenue collected from them provides countless services to communities across the nation
. Property taxes not only help pay for city needs on a large scale, such as improving education and building police and fire stations, but on a small and personal scale as
‘How soon will I make money if I start investing in tax liens? What about tax deeds?’
As the old saying goes ‘If I had a dollar for every time I am asked those questions…I would be wealthy!’
The fact is, there is no real way to accurately answer those questions. For liens I suppose
People do not get involved in tax liens and deeds because they are bored and are looking to fill up their time. Our clients frequently ask themselves and us, ‘how am I going to find the time to do this?’
With work and/or a personal life, this new investing endeavor can be a daunting prospect
Are you or your investing partner interested in attending an auction this spring?
To help familiarize our students with different state auction processes around the U.S., I am featuring Florida in this blog article. As an added bonus, I will profile a home that was available just this month for auction in Hillsborough County, FL.
One of my goals for this blog is to introduce you to markets
that you may not have previously considered for your tax lien and tax deed investments. In this post I would like to introduce you to the great state of Nebraska
. There are ninety-three counties in Nebraska
In my last blog article I mentioned that New Jersey uses a hybrid auction process that can be a bit complicated. To begin with, they use a bid-down-the-interest process
. The statutory interest rate is 18%, so that is where the bidding starts. The investors then bid down the interest rate in 1% increments
If you live or own real estate in hurricane prone regions, you may or may not need a separate policy that covers hurricane damage
. I wish real estate investing could be black and white, but just like so many other topics today’s has some grey areas
The #1 action you must consistently do on a weekly basis to achieve financial freedom through the power of investing in Tax Lien Certificates and Tax Deed Properties.
In late 2012 I came across an online tax lien investment opportunity that surprised and delighted me at the same time. One Municipality and one Township, Redbank & Evesham, New Jersey, (aka the Garden State)
are now holding their property tax lien sales online at RealAuction. This shocked me, because the bidding process in New Jersey
It’s been said that there are only two constants in life—death and taxes
. Tax liens can’t do much about death, but they can certainly help with taxes
. In this blog we’ll discuss some possible tax advantages to investing in tax liens.
First, the interest you earn from a tax lien certificate is reported to you
With the arrival of a New Year comes the perfect time to start investing in tax liens. The first major tax lien certificate sales of the year take place in Arizona
. Some of the counties in Arizona begin their sales the last week of January and by the end of February every county in Arizona
and I have been friends and real estate partners for many years. Our first real estate deal was in Billings, Montana
, more than 20 years ago when we purchased a fully improved lot (I’m sure you have heard me tell that tale in many of our educational CD’s and books!)
In an earlier blog post I promised that I would cover the steps you need to take before and during your purchase of a tax deed. I will not be covering exit strategies in this post, which is a subject I will cover for you in several future blog posts
. Let’s take care of the
The other day I was asked a question by a client that took me by surprise. The surprise came from the timing of the question
. He asked me the question after
purchasing a tax deed on a house in Florida. His question was, I just got a tax deed now what do I do?
Tax lien investing was once a delicious little secret, but increasingly people are discovering this efficient tool for making substantial profits
. What you may not know is that you can use funds from your retirement account to purchase tax lien certificates.
The "Secret" Is in the Plan
The key is to have the right type of retirement plan
Whether you prefer tax liens or tax deeds you will find what you are looking for in Indiana
. The tax sales in Indiana satisfy the needs of both the tax lien and the tax deed investor
. In fact the ninety-two counties in Indiana are allowed to hold three different types of tax sales. The three types
One of the quickest ways to get monthly cash flow
is to purchase a property, hold it
, and rent it out. Tax deed and tax lien investing is essentially a precursor to becoming a landlord
. It’s inevitable you will get a property that you will want to hold onto; this could be due to the high rental returns in the area or you’re just waiting for the market to improve…
Most people don’t lose their primary residence for a couple hundred, or even a couple thousand dollars in back taxes. The vast majority of tax lien certificates on primary residences do redeem
, which insures the 18%, or 25%, or 36% interest to the investor.
Tax Lien Certificates – Can you really get propertie
Many of our successful clients have no interest in acquiring real estate, and feel much more comfortable just earning high interest only
. You can definitely invest in tax lien certificates and earn the high interest rates of, say, 25% or 36%, and basically eliminate the possibility of acquiring the property.
While we typically train our students in residential real estate investing, there are always those who are very interested in purchasing commercial properties
. If you take a look at a tax deed or lien sale list, you’ll notice the bulk of the available properties are residential.
Yes and No. If you don’t have a nationwide strategy and you restrict yourself only to your local market then yes, there could be a lot of tax lien certificates competition. If you have a nationwide strategy where you have access to safely acquire tax lien certificates nationwide right from the comfort of your
In a word, no! When we acquire a tax lien certificate, in essence what we’ve done is paid someone else’s delinquent tax bill for them. In return, we receive a tax lien certificate on the property. Because the tax lien certificate has grace period of 1 – 4 years, we just bought the property owner
Tax Lien certificates are offered to the public in twenty-one states
. New York and Ohio sell their tax lien certificates in bulk to large investment firms
. A complete list of the tax lien states can be found in my blog post titled “Where to buy tax lien certificates”
. The amount of interest paid on tax
If I decide to go to a Tax Lien Certificate sale or Tax Lien Certificate auction, how does the sale work?
There are four basic types of tax lien certificate auctions or tax lien certificate sales; bid down the interest rate, rotational bidding, premium bidding, and bid-down ownership.
If you invest in tax liens
and tax deeds
you will undoubtedly come across an amazing property that has an existing tenant in it. So what do you do? Do you move on and try to find an empty property?
It is a common misconception
that we need to work long and tiring hours in order to be productive and to get ahead. The reality is if we work smarter
, as opposed to endlessly laboring, we can reach our goals faster while enjoying plenty of sleep, exercise, and vacation time.
An organized workspace helps facilitate a busy and successful business. With technology advancing daily, it is possible to incorporate a few smart tools that will help simplify research, save time
, and will not cost you a huge initial investment. One fantastic example I always mention at the workshops is the Livescribe pen
Now that spring is officially here, talk of spring and summer trips have begun
. When the weather is nice, folks tend to use that as a good excuse to take things easy for a little while. This is precisely however why this time of year is an excellent time
to keep pace
If you have just been introduced to the world of tax lien certificate investing you may be wondering how you go about buying them. There is no reason to be intimidated by the process; however, I do recommend that you seek out the advice of an experienced tax lien investor before you invest any of
One of the most frequently asked questions that I get from people that are interested in investing in tax lien certificates is ‘where can I find them?’
Through assignment purchasing, tax lien certificates are literally available 365 days per year if you know where to look for them. In this blog post, I will
An important part of our mentor programs involve teaching students how to read lists
. This is a critical skill, without it people pass on opportunities without even realizing it. A common point of confusion among beginners is...
Alright folks, I know you have been sitting on the edge of your seats waiting for me to discuss Indiana Commissioner deed sales
. So I’ll just jump right in
. I’m sure my articles were the first introduction of Indiana deed sales to many students. It is a common misunderstanding
that Indiana only has liens available ...
Today I will continue to discuss the details of Indiana’s unique tax sale structure
as promised in my last article. As a review, they have three types of tax sales: Tax Lien Sale, Commissioners Certificate Sale, and Tax Deed Sale. The Tax Lien Sale
held in each county may make the most sense to you. It...
The tax sales in Indiana are very unique
. As I’m sure you have noticed by now no two states are identical in how they operate their tax lien and/or tax deed sales. Whether you have decided to invest in liens or deeds, Indiana can satisfy the needs of either investment type
. The counties have permission...
It’s amazing what we can learn if we open our minds to the ideas and experiences of others. Of course
, it’s not hard to find people ready and willing
to tell you what they know... some of it is valuable, and some not. The important thing is to glean the real nuggets
from shared ...
No matter how far away your retirement date may seem, you need to start thinking about it now
. Actually, don’t just start thinking about it, plan for it
. I know many of you are thinking, ‘that’s why I’m here isn’t it?
First let me explain how the process works. When you acquire a tax lien certificate, you are now the first position lien holder of record. In essence what you did was pay the delinquent tax bill, and in return you received a tax lien certificate
. When the delinquent property taxes are paid, you receive all
A Tax Lien Certificate is a first-position lien
on real estate due to delinquent property taxes. Once property taxes on a property are one year delinquent, the county government places a lien on the property which is commonly referred to as a tax lien certificate
One of the important questions we receive is how to make money with Tax Lien Certificates if I’m starting with limited capital?
My first Tax Lien Certificate investment was $260, and my business partner Saen Higgins’ was $52. Less than two short years later, we had already generated over $543,000.00 in revenue
just from our Tax Lien Certificate and Tax Foreclosed Homes.
For our students who are deep into researching tax deed or tax lien properties, they will often stumble across what is generally referred to as a property transfer history
. A property transfer history is exactly
what it sounds like. You can see record of who the previous owners
Becoming a Tax Lien Certificate investor can obviously be a lucrative investment strategy;
so what are the risk factors one should know about. The more obvious risk factors are: Bankruptcy, IRS liens, environmental issues, worthless lands, condemned structures, undesirable neighborhoods, and industrial properties.
Do you have to go to auctions to invest in Tax Lien Certificates and Tax Foreclosed Homes?
Is it possible to safely invest in Tax Lien Certificates and Tax Foreclosed Homes in other parts of the country without being there? Answer: Yes.