Training Module 1 | ustaxlienassociation.com

Training Module 1

 

Training Module 1:

Tax Lien Investing 101 – The Basics You Must Know

by Tony Martinez and Saen Higgins

Please Post Your Comments and Questions Regarding this Training Session Here:

  1. What was your greatest "takeaway" from this lesson?

  2. What’s the #1 question you now have regarding investing in Tax Lien Certificates?

  • Tony Martinez on Training Module 1You can get lists of available properties directly from the county treasurer/tax collector. Try their website first and then call if you can't find them. Or, if you are looking for a way to get access to many lists all in one place, we have made those resources available through our advanced training program. The Ultimate Listing Service (ULS) is our proprietary website which will give you information on upcoming tax sales, detailed State and County information, and valuable resources to help you invest profitably and safely. Check it out at uls.ustaxlienassociation.com.
  • Tony Martinez on Training Module 1The interest rate that the investor agrees to accept, as a bidder, is usually a Per Annum (yearly) rate (with just a couple of exceptions in some states). It is amortized monthly in most states so, a 18% interest rate would accrue at 1 ½% per month for the length of time that he/she possess the lien. For redemption periods exceeding one year the investor receives the same interest rate for all additional months until the lien is redeemed. Keep in mind that some places have a minimum penalty. For example, in Florida, the minimum is 5%. So even if the owner redeems early and you would get less than 5% under the above calculation, you still get 5%. Once your TLC is redeemed, you can take that money and reinvest it so that it continues to accrue interest.
  • Tony Martinez on Training Module 1With a lien you may collect the interest return when the property owner redeems the property. Or, if it does not get redeemed you may foreclose on it and take possession. At that point you would have significant equity in the property and you could sell it, rent it, or hold on to it for additional appreciation.
  • Tony Martinez on Training Module 1You can get interest rate info. directly from the county treasurer/tax collector. Try their website first and then call if you can't find them. We have comprehensive state profiles that show what investment type(s) each state offers, when sales are held, information on redemption periods, interest rates, sale/auction process used, which states offer online auctions, whether or not each state offers over-the-counter properties, links to state statutes governing tax sales, lists of available properties, tools to make the due diligence process easy to navigate, and more!!! This is all available to our advanced students on the member's section of our website.
  • Tony Martinez on Training Module 1Investing with other peoples' money is not only a good strategy but we teach Investors how to locate investment money and how to contract with other investors in our advanced training with our Protégé Members.
  • Tony Martinez on Training Module 1The property owner is responsible for paying the subsequent years taxes during the redemption period. You will be given notification of the taxes due each year and given the opportunity to purchase the subsequent liens if the owner defaults prior to the lien being offered up for auction. You do not have to buy subsequent years taxes but if the investment was good the first year why wouldn’t you want to add to your investment like you would a savings account?
  • Tony Martinez on Training Module 1After the video series, some people feel like they would like to pursue investing on their own with no additional training. Other people prefer a personalized training course or perhaps access to additional tools and resources to help along the way. Ether way, we are happy to help you get going!
  • Don Corwin on Training Module 1Can't wait to get started
  • Tony Martinez on Training Module 1You can find Tax Sale Calendars on the ULS. The Ultimate Listing Service (ULS) is our proprietary website which will give you information on upcoming tax sales, detailed State and County information, and valuable resources to help you invest profitably and safely. Check it out at uls.ustaxlienassociation.com. Assignment purchasing is when an investor buys an over-the-counter lien from the County. These are liens that did not get purchased at the auction and are now made available through the county usually on a first come, first served basis. The interest rate that is offered is usually the highest rate that the State allows. Depending on the county, sometimes if the lien has been held by the county for some time then the redemption period may be reduced substantially.
  • Tony Martinez on Training Module 1When buying TLCs, I usually purchase them with the expectation of collecting the interest and not to acquire the property. I look for liens that have the highest probability of getting redeemed. Whether I get the interest or the property the transaction is usually a very profitable one. However, I do know that if you want interest income and don't have the goal of acquiring property, look for these three types of tax liens: Single family homes with a mortgage, Retail properties with a mortgage, Commercial properties with a mortgage. They have a 98% redemption rate. If, on the other hand, you want to acquire properties, I recommend buying tax deeds. We discuss tax deeds in video #4.
  • Tony Martinez on Training Module 1Several tax liens may be purchased on the same property for subsequent tax years. It depends upon how long the redemption period is. For example: In a state that has a 3 year redemption period 3 tax liens, one for each year, may be purchased. These liens could be purchased by the same investor or by different ones. When the property is redeemed, regardless of how many investors have purchased liens, all liens and interest are paid. If the lien does not get redeemed then there would be a foreclosure process as per the County and State statutes. Usually the first lien holder has first rights to foreclose and so on. Whoever forecloses on the property to take the deed would be responsible to pay all other tax lien holders.
  • Tony Martinez on Training Module 1Redemption periods are determined by the county or taxing entity conducting the sale. These periods can be anywhere from a few months long to 4 years. The property owner can redeem anytime within the redemption period. The investor receives payment upon redemption.
  • Tony Martinez on Training Module 1Lots of people have limited funds. Don't let that stop you! Work as you normally would, but just focus on properties that are within your budget. Ignore the rest or partner with someone to expand the amount you have available to invest. Also, check out my article about this topic: http://ustaxlienassociation.com/investing-in-tax-lien-certificates-with-limited-capital/
  • Tony Martinez on Training Module 1You can get that info. directly from the county treasurer/tax collector. Try their website first and then call if you can't find them. We have comprehensive state profiles that show what investment type(s) each state offers, when sales are held, information on redemption periods, interest rates, sale/auction process used, which states offer online auctions, whether or not each state offers over-the-counter properties, links to state statutes governing tax sales, lists of available properties, tools to make the due diligence process easy to navigate, and more!!! This is all available to our advanced students on the member's section of our website.
  • Tony Martinez on Training Module 1Several tax liens may be purchased on the same property for subsequent tax years. It depends upon how long the redemption period is. For example: In a state that has a 3 year redemption period 3 tax liens, one for each year, may be purchased. These liens could be purchased by the same investor or by different ones. When the property is redeemed, regardless of how many investors have purchased liens, all liens and interest are paid. If the lien does not get redeemed then there would be a foreclosure process as per the County and State statutes. Usually the first lien holder has first rights to foreclose and so on. Whoever forecloses on the property to take the deed would be responsible to pay all other tax lien holders.
  • Tony Martinez on Training Module 1Educating yourself as much as possible is the best thing you can do to get started. So begin by watching this entire video series. In it, we will discuss the various investment options as well as strategies you can implement based on your individual preferences, financial goals, and circumstances. Make sure you ask questions along the way. Also, don't miss the free, 2-hour class that follows. Then see where you at and what else you would like to learn before investing for yourself.
  • James Vande Berg on Training Module 1Best Take-away: Learning there are 5 different ways of acquiring TLCs Question: On long-term redemption periods (e.g. 4 years), are the interest rates the same for each year? Why does the County permit the tax payer multiple years to withhold taxes? Is there less risk involved in being a "later year" investor?
  • Gary McDuffie on Training Module 1I would like to take this course and learn as much as I can learn. Thank you in advance.
  • Ivan on Training Module 1Wow, tax liens are historical. What's the shortest amount of time does a TLC last?
  • Roy on Training Module 1Greats take away was when I heard you say. People get just enough information to make their decisions dangerous. Also A question I have is when trying to get the Tax delinquent list. I always get the brush off an told to got to the auction site. I want to know how can I get the list so that I don't have to compete with someone with bigger pockets an just pay the amount the county is owed.

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