Monday, October 11, 2010

HOW TO START BUYING LIEN CERTIFICATES

It is highly recommended by real estate Gurus for your 1st Lien Certificate Purchase, if you are too concerned to spend more than $100 to $1000, then just buy an inexpensive one around $20 to $40. The idea is to JUST BUY A CERTIFICATE!

Step 1. Find the County lists of certificate.

Step 2. Make a list of those certificates in YOUR PRICE RANGE whether the $20 to $40 range or the $1,000 range.

Step 3. Research those - looking for the most property or the ones with the highest market value

Step 4. Narrow down your list and make a decision.

Step 5. Make the purchase: Follow the directions on the county website as to how to make that purchase. It may be as easy as just sending a check, or just pushing a "Buy Now" button.

Step 6. Send a copy of the purchase confirmation email to your coach - Stan D. at
realestate@coachwebmail.com

Once you have done the 1st, you can then follow the same steps again to make other purchases. At that point you can either look for other inexpensive certificates with value and eventualy start looking for owner occupied certificates.

Sunday, October 10, 2010

THE BEST SITE TO BUY TAX LIEN CERTIFICATES

HERE IS THE BEST SITE TO BUY TAX LIEN CERTIFICATES:

This site is the most complete I have seen - with lists of currently available certificates, their face values, links to the county to do your research, and then a “Buy Now” button to move forward and purchase the liens you like – ALL ON THE SAME PAGE. When you buy certificates, money is transferred directly from your bank to the county using an ACH (Automatic Clearing House) Debit. No need for money orders, cashier checks or mailing funds back and forth. It doesn’t get any easier than this.

Look at Colorado for current auctions - Grand County includes Steam Boat Springs a Ski Resort City.

Look at Florida for County Held Certificates

HERE IS THE LINK:

http://www.realauction.com/template.cfm?r=LeftMenu/ListCountyauctions

Scroll down to Florida. Look for the links that have the words “County Held Opens”. Currently there are 12 Counties with Open lists. This statement will remain on these sites until all the certificates are sold – then it will reflect the words “CLOSED”.

These links take you to their websites where you can “Preview Items for Sale”. After clicking on this Preview link, look for the certificates that are “Active”. Click on the Parcel Number to gain access to research tools. Look for properties that have the most value for the money or find homes that are owner occupied.

The County-held tax certificate sale offers all certificates not sold at auction for public purchase. The unsold certificates carry an 18% interest rate per Florida statute. All certificates are sold on a first-come, first-served basis.

When you find ones you like it is a VERY EASY process to buy. All you have to do is register. You do have to register with each county separately. You can also use the same user name and password on different counties. After logging in, click on “Buy Certificates” on the left side. Choose the Certificate year you want to buy in. Find the one or more you had selected.

Next, look on the left side of your screen, click on the "Provide Bank Information" button to enter the bank information to be used for your purchases.

As soon as you click the “Buy Now” button to select the certificate(s) you wish to purchase, an ACH request will be sent in the amount of the face value of the certificate(s). That certificate(s) will be yours pending the successful transfer of funds and recording of the sale in the County computer system. It is the responsibility of the purchaser to research properties prior to clicking the "Buy Now" button.

Please note: If taxes are paid before your payment is received, that purchase is canceled and you will receive a refund. In most counties, the five-percent minimum mandatory charge does apply when a certificate is purchased from the County. In other words, if the certificate is redeemed within the first 90 days you will receive a mandatory 5% return on your investment. This also why investors are willing to bid down their interest rate to as low as .25% on the 1st run Certificate Auctions in May and June because they know they can earn that minimum 5%.

Saturday, October 2, 2010

Over the counter (OTC) Quick Links and How to Buy

Florida

Charlotte County (County Seat: Punta Gorda) Link: https://www.charlotte.county-taxes.com/public/reports/real_estate When you get to this link look on the left side and highlight the words "County Held Listings" Then go to the bottom of that box and click on "View Selected Report". Search through the list. Find the properties you are interested in and research them. When you have a final selection and are ready to buy - just call 941-743-1350 to Buy them.


Citrus County (County Seat: Inverness) Link: http://www.tc.citrus.fl.us/reports/pdf/countylheldlist.pdf. This will take you directly to the list. Search through the list. Find the properties you are interested in and research them. When you have a final selection and are ready to buy - just call 352-341-6509 to Buy them.


Miami-Dade County (County Seat: Miami) Link: http://www.miamidade.gov/taxcollector/
Dade County holds their Annual Auction in June. Followed by another Auction in July for the left over certificates. The remaining properties can by accessed by going to the link above and Clicking on "Available County Held Certificates". Find the properties you are interested in and research them. When you have a final selection and are ready to buy then you can call 305-375-1829 to buy cerificates.


Okaloosa County (County Seat: Crestview) Link: http://okaloosatax.com/LinkClick.aspx?fileticket=m8hgzj%2f6Gtw%3d&tabid=92&mid=439
This link will take you directly to the list. Search through the list. Find the properties you are interested in and research them. When you have a final selection and are ready to buy - just call 850-689-5700 to Buy them.


Pasco County (County Seat: Dade City) Link: http://www.pascotaxes.com/Search/offlinebuyermain.asp?page=1&choice=B&buyer=000999&certificate== &name=COUNTY OF PASCO
This link will take you directly to the list. Search through the list. Find the properties you are interested in and research them. When you have a final selection and are ready to buy click on the email link at the bottom of each page listing.


St. Lucie County (County Seat: Fort Pierce) Link: http://www.tcslc.com/sale/CTC-2010.txt
This link will take you directly to the list. Search through the list. Find the properties you are interested in and research them. When you have a final selection and are ready to buy - just call 772-462-1650 to Buy them.

The Lien Machine - Creating Wealth

Ideally, investors will want to invest and reinvest over and over.
This means that as soon as one TLC is redeemed it is reinvested.
This is will compound the gains. You will want to be ready to reinvest
as soon as possible. The ultimate goal is to eventually have TLCs
coming due each month and annuitizing your new business.
I like to call this the “Lien Machine” because input is being turned to output,
which means profits!

Some STATISTICS to keep in mind:

70% of all liens are redeemed.
95% of Owner occupied liens are redeemed within the 1st 90 days.

So what type of Lien Certificate do you want to buy? Those that are owner occupied.

The best way is to purchase liens on a regular basis. That could be on a weekly basis, twice a month or monthly. You, as an investor, know your time constraints as well as your budget. But set up a plan that works for you.

Example:
You research and buy $100 worth of certificates every week.
So the 1st month you invest $400
The 2nd month you invest $400
The 3rd month you invest $400
NOW the 4th month you invest $715. How? Statistically 3 of the 4 purchases from the 1st month should redeem with interest. So even with a minimum of 5% interest you should have received $315. So now you will invest your $400 + the $315 from the redeemed certificates or $715


From Saen's Book: "Make the investment
Unfortunately, many students have taken my courses, read my books and even tuned into my
conference call but never made an investment. Just like the man whose testimonial was printed in chapter 4. He read the books but failed to act. Remember you can start with as small an amount as you are comfortable. In order to be successful you must start making the investments."

It is recommended by Saen that you just buy something. Start with $20. It is safe and gives you the experience and confidence you need to move to bigger and better certificate purchases. Worst case scenario - you loose $20.

SO GET GOING - GET OUT THERE AND JUST BUY SOMETHING.

Friday, September 17, 2010

Pre-auction Letter

John Doe
Street Name
City, State, Zip
Phone Numbers
Email address

Floyd and Marilyn Horn
514 SE 50th Street
Oklahoma City, OK 73129


Dear Floyd and Marilyn,

I am interested in buying several properties in Love County and
according to their official records it shows you own the following property:



Legal Description: Phase 1, Unit 3, Block 8, Lot 2, Falconhead.

Parcel Number: 123-456-210

According to the Love County records it shows that your
property has been delinquent for three years. This is your last chance
to receive any money for your property because your right of redemption
is expiring and it is scheduled to be sold at an auction on May 15, 2008 and
YOU WILL RECEIVE NOTHING.

If you are going to let your property go to tax sale, I am
interested in buying it. I will pay off your delinquent
property taxes and, additionally, pay you Two Hundred Fifty
Dollars ($250.00).


If you want to sell your property, you must do the following:

1. Sign the enclosed deed, transferring title to your property
from you to us before a Notary Public. I will reimburse you
the cost of the notary fee. Send me a receipt and I will reimburse you.

2. Thereafter, send me the deed in the enclosed, self-addressed,
stamped envelope

Upon receipt of your deed, I will have the title to your
property researched to verify that you have a clear title. Upon
such verification, I will send you a check for the $250.00
together with the cost of the notary fee.

If you need to contact me, you can either phone us at (555) 555-
5555, or email us at xxxx@xxx.com. If no one answers the phone,
please leave me your message together with your name, phone
number and the best time for me to call you.

Sincerely yours,

John Doe

P.S. Since I have a limited amount of money to invest and I
am contacting several other Falconhead owners in your same
situation. Please let me know as soon as possible if you want to sell

WHERE TO FIND DEEDS

You will prepare the deed by going to www.vuwriter.com. On the first page Click on “OK”. Look for the word “Forms” in the list on the right side of the page. Then you will see abbreviations for every state in the United States. Pick one of those states and there are several documents for each state, including deeds. These deeds have been prepared by a title company and have everything that the different states require for a deed. Find the quitclaim deed for the desired state and click on the deed. A document will appear and you need to copy the information and paste it into MS Word or another word processor so that you can manipulate the document.

You can also go to www.google.com and search for “quit claim deed (state name)” and find many professionally created “PDF” quit claim deeds that are free to download and use.




HOW TO FILL OUT A QUIT CLAIM DEED



Most Quitclaim Deeds need to be edited. Plus there are 4 areas that need to be included on the Quitclaim Deed.
1. The owner’s name or names: The owner is the seller. So look for the word Grantor as a place to enter his name. It needs to be entered exactly as you find it in the legal documents associated with the propery.
2. Your name or company needs to be entered. Look for the word Grantee or sometimes it may say “Convey to:” that is where you enter your information the way you want it to appear on the Deed. This is one area you can use your LLC or company name.

3. The Legal description will go in an area the may say “described as:” The easiest way to enter this is to copy from the original source and past it in this spot.

4. Somewhere on the form it will usuall say: “For the sum of $10 or $1″ This is where you enter the dollar amount you intend to offer the owner for his property: Two-Hundred Fifty dollars ($250).

Wednesday, September 15, 2010

What You Need to Know

What to Find Out from the Local Tax Authority

The life's blood of your business is your knowledge of how counties work. As you gather information about any one of the nearly 3100 counties (to say nothing of townships in states where counties are not governing entities), you are preparing the soil of the field that is your business. With adequate preparation, you can sow seeds that will create an abundant and reliable harvest in the future. This makes life much easier on you than working as a hunter-gatherer, always hustling to find whatever you can.

Before we can appoach owners of tax delinquent or defaulted properties in a given county, you will want to find out the ground rules for working in that county. Let's keep in mind that the 3000 plus separate counties in the U.S. all operate according to their own policies and procedures. There are similarities in how things are done everywhere you go, but many differences, as well.

When gathering information from government employees, it is important to be respectful and friendly. Their job rarely gives them fulfillment or appreciation, so your appreciation of their help will go a long way. Remember, too, that if one person won’t help, you can find another who will. Generally the higher you go in the hierarchy, the more helpful people tend to become (how do you think they got promoted?).

What is it that you want to know?

It is really quite simple; if you know the answers to the following questions, you now know the county and how it operates. Combine the answers to these questions with a solid rapport with a live human being in the county offices who feels good enough about you to do a few favors for you. Obviously if you already know the answer to a question, you need not ask. If you are working in a state that sells only deeds, you don't have to ask question #2, as written. However, it presents an opportunity for conversation. You could ask, "Now Betty, it's my understanding that there in your county, when you hold an auction, you sell tax deeds. Is that correct?" In fact, the best attitude to take with these questions is that they highlight points of information you wish to know - whether you have to ask or not:


1. Who handles tax liens for the county (Treasurer, Tax Collector, Sheriff, Tax Assessor, Trustee)? In reality, the more exact question would be, "which county agency confiscates tax-delinquent properties and then sells them again." We want to find out who sells the properties at auction because that is who you will have the properties for you to purchase.

The easiest way to find out is to look at the county Web site. However, as a general principle, the more difficult it is for people to discover the information we want, the less competition we expect in the business – obviously most people want to follow the path of least resistance. That means that you should not be afraid of gathering part if not all this information over the phone. On the other hand, the more you can gather online, the less you will have to tax a county employee's patience with telephone questions.

2. Does the county sell tax lien certificates or tax deeds when it has an auction?

3. How many properties per year on the average come to the date of termination of the owner's right of redemption. If the county sells deeds, you simply ask how many properties get auctioned off each year. If the county sells liens, you find out how many liens come to the end of the redemption period unredeemed. The different questions give you the same information: how many deals are available for you with this county each year on the average. If the county typically has one or two such properties a year, it may not be worth your time to continue with that area. If it has 15 - 20 such properties, that may be worthwhile.

4. What is the date of the next auction and how often do they hold an auction?

5. At what point does the property owner lose the right to redeem the property by paying the taxes due? In other words, what is the date of termination of the owner's right of redemption? If this is a county that sells deeds, you want to know how soon after the onset of tax delinquency the property is eligible for auction. In a lien sale situation, find out how long the redemption period runs and exactly when it begins (i.e., at the onset of delinquency or at the time of the sale).

6. What does the county do with the properties that don't sell at an auction? This is a way to find out whether the county has over-the-counter sales available - an alternate way of purchasing properties. Over-the-counter is a generic term for properties that the county owns and wishes to sell. In some areas they are called Negotiated Sales, or Repository Sales, or Surplus Properties, or Struck-Off Sales. The only way to know they are available is to ask.

7. How can I obtain a list of properties that will be available at the next auction. (Will the list appear on a Web site, can they mail it to you, is it published in a local newspaper? What is the procedure for this particular county?) You will eventually want to knowhow to get lists of properties that will reach the date of termination of owner's right of redemption within the next six to eight weeks and get your contact person with that county to send it to you; however, this may not happen on your first contact with this person - the trust and rapport might not be enough for her to feel comfortable with or even wanting to exert herself to do something beyond answering your questions. The article on building rapport elsewhere on this site will give you some tips on how to achieve this.


More information to learn:
These preceding questions comprise the information you want to know to assess a county to see whether to add it to your client list. You also have the information you need to begin your marketing campaign in this county. The following questions will help you with your future dealings with the county, particularly after you have obtained lists of tax delinquent properties from the county. At the beginning, you don't need to ask about these points yet.

8. How can we get a parcel map? This may be in the form of a Web-based GIS map,
or you may have to get them to fax it or mail it to you.

9. Does the county have an excess proceeds policy? This mean that any money
collected in an auction in excess of the amount of the minimum bid on the property
would be available to the previous owner - as long as the owner applies for it. This
can work out as an additional money-making strategy down the road for you.

Take a relaxed attitude when talking to people and use these informational questions as a means of getting to know them a little. We want to keep in mind that familiarity breeds trust, and as you discuss these points with county employees (hopefully the same person each time), you will build rapport and trust so that when time comes to ask for something, such as a list of delinquent properties, they feel comfortable enough with you that they will do as you request.

Friday, August 13, 2010

HELP ADVERTISING YOUR PROPERTY IS AVAILABLE

Here a name you can hire to do your ads for you. She charges around $125 to create your ad and help you get it posted on Bid4Assets.

Anna - Contact: Anna@annasweb.com her phone number is: 310-539-1715

Tuesday, June 15, 2010

INTRODUCTION

Property Tax Sales

Tax sales come in two forms, either Tax Lien Certificates or Tax Deeds. The certificates serve as privately held notes secured by a common tax lien on real property. The virtues of this kind of investment are that they provide good security along with competitive rates of return. As you research states, you will learn which sell certificates, which sell deeds, and which do both. This is outlined on a separate page of this site.

The government needs its revenue
A typical county government obtains at least half its annual revenues for everyday operating expenses from property taxes. These taxes help fund school, hospitals, law enforcement, fire protection,, road construction and maintenance, social services, parks and recreation programs, to say nothing of county administration. They support public libraries and mosquito abatement programs. Some of this money goes to the local justice system and to public transportation. The county depends on these revenues. When taxes are not paid, the county cannot function as it should.

When the county is not collecting the revenues due it, it does what other creditors have done for as long as creditors have existed. It sends it out for collection. And this is where savvy investors can make high return on secured investments.

In this case, the collecting entity is the fellow citizens of the delinquent taxpayer. It works well for both parties. The county gets the budgeted revenues from property taxes, and the fellow citizen has a nice investment with high returns, secured by real property. In any case, the purpose of selling the property tax lien is to allow an investor, in place of the property owner, to pay the delinquent property taxes due. The county receives immediate revenue and the investor benefits with a low risk—high yield investment.

How does it work?
When a property owner is late on paying real property taxes, the taxing entity (county or municipality, in Louisiana, the parish, in Alaska, the borough) 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. A tax lien becomes a first priority lien on the property; in certain states a certificate representing this can be sold at auction. Investors can then buy the lien (cash only) and receive 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 a redemption period, the length of which is set by the local jurisdiction, if the property owner fails to pay.

In other states, the taxing entity sells a deed at public auction. The deed buyer now owns the property outright and is entitled to collect rents on it or sell it for a profit..

One state, Texas, sells a deed that allows a redemption period, in which time the previous owner can pay the taxes plus a large penalty (25%) to the investor in order to get the property back. The redemption period is six months on most properties, two years on homesteaded or agricultural use properties.

With a Texas tax deed, the investor owns the property, can collect rents if possible, but if the investor were to sell that property, he or whe must make allowance for the fact that the original owner may redeem it and take back the property the investor already sold - you would have to indemnify the person that bought it from you against any loss of money.in the buy-back. In other words, if you buy a deed for $5,000, and then sell the property for $10,000, the previous owner would have to pay you $6,125 for redemption. You would need an extra $3,750 to return to your buyer to make up the rest of the $10,000. That should not be difficult if you saved $3,750 out of your $5,000 profit in a reserve account. However, neither we nor anybody we know have every seen or heard of a tax deed redemption on a non-homesteaded property in Texas. It may happen with homesteaded properties, where it involves the previous owner's personal residence, but with the six month redemption, generally speaking the owner does not care enough to redeem, only has six months to do so, and has to pay more than double the original tax amount to do so.

Georgia, Tennessee and Hawaii observe a one-year redemption period, as well. Although some sources list them as a redeemable deed states, in reality the document that you buy in these states does not give you ownership of the property until after a year. If it quacks like a duck and waddles like a duck, it must be a tax lien certificate.

Tax Lien Certificates
Tax lien certificates 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. You get rates of return on your investment like 16%, 18% or even 24%. The risk is that you buy a lien and it gets redeemed within a month. For example, if you purchased a $1,000 lien at 18% interest, and the owner redeems the lien 30 days later, your total income would be $15.00. You may have spent more than that in gasoline to travel to the auction.

Therefore, the best way to buy lients is in bulk: if you buy 20 at a time, the law of averages holds that some will be redeemed quickly, others in a few months, and another group of owners will wait until the last minute to redeem. In fact, out of twenty there is a chance that one of the properties will not be redeemed and you can take possession of it.

Tax Deeds
With tax deeds, you acquire great properties for pennies on the dollar. Put tenants in that property that you now own free and clear, and your passive residual income continues for as long as you want it. Just remember to pay the property taxes, of course. Or, if you wish, you can just sell the property for a handsome profit.

Quick Profits
If quick profits are more important right now than passive growth of capital over time, you will want to acquire properties rather than liens. The good news is that there are multiple ways of acquiring properties in this market.

* Buy at auction

* Buy directly from the property owner prior to the date on which that owner loses possession of the proeprty

* Buy from the county on an over-the-counter basis - these are properties that the county has in inventory and wants to sell immediately.


This course will focus on all three of these purchase methods. All three work very well. The obvious advantage is that if you happen to live in an area where only tax lien certificates are available, you can still purchase properties by using the two non-auction methods of purchase. Not only is that possible in all parts of the country, but you can easily do it without having to be there: if there is no auction to attend, you don't need to travel. The postal system and the telephone system will allow you to make money at home.

Tuesday, March 16, 2010

LAND vs HOMES

Should I Buy Raw Land or Homes?

Many people starting out in tax sale investing wonder if they should focus their efforts on land or homes. Both have advantages and disadvantages so it is important to consider these up front and decide which will be best for you or if you want to do both.

With homes, there is a greater margin of error because usually there will be more equity in terms of raw dollars. For example, if you buy a piece of land for $500 and the market value is $1,000, there is only $500 for profits and margin of error (in case your research isn’t completely accurate, which can happen, or if things don’t go exactly as you plan). On the other hand, if you get a home for $50,000 that is worth $100,000, there is $50,000 of equity, and thus, a much greater room for that margin of error factor. If you need to, you can sell the home at a significant discount and still make a good profit.
Usually, homes can make you more money per transaction. While this isn’t always the case, it is nice to be able to make a lot of money on each transaction. With land, you may need to do more transactions to make the same amount of money.

Land is more readily available. As you get your property lists, you will likely find that there are more parcels of raw land on the list than there are homes. If you own a home, you probably realize that most people who own a home have a mortgage. Mortgage companies usually require the property taxes to be paid through an escrow account and that portion of the payment is made along with the regular monthly payment. Mortgage companies are careful about making those property tax payments each year so that they can secure their interest in the property.
People are less likely to redeem land than homes. Many properties that end up on a tax sale list do so because the property owners are having financial difficulties. In such circumstances, they may have to prioritize which bills they pay. They are more likely to pay the taxes on their primary residence than on any raw land they own. They are also likely to pay other important bills first and let the land go.
Land is easier to research, especially from a distance. Sometimes it is very difficult to research homes you can’t see for yourself. There is an inherent level of risk in purchasing properties that you cannot inspect first-hand. That same risk is much less with land since there is less that could go wrong.
There is less competition. Some people decide they only want to purchase homes at tax sales. When I started out, that was my feeling. But with so many people competing for home and with less homes available than land (generally), it becomes very competitive sometimes. That competition may also drive up the winning bid on homes.
Starting bids (and usually winning bids) are usually lower on land. This only makes sense. Since counties are trying to collect property taxes and taxes are based on property values, it usually follows that the amount of taxes due (and usually the starting bids) will be lower on land. This makes land a more affordable option for those who don’t have a lot of money to start investing.
Getting land can still be very profitable. You can usually sell land faster. Online auctions allow you to sell your properties in a week or so. This can create faster turnaround on your money.
Land generally has fewer liens and other encumbrances that can cut into profits. Having fewer liens also increases the chances that you can sell the property quickly.
Personally, I focus on land and take the homes when they are in my area and good deals come along. I am willing to buy land anywhere in the country as long as my research indicates that there is a good profit to be made and that the property itself is a desirable property. I stick to homes that I can inspect personally, at the very least from the outside.

Monday, March 15, 2010

OTHER USEFUL SITES

Other Useful sites:

www.netronline.com

www.naco.org

www.zabasearch.com

www.zillow.com

www.geocommunicator.gov

www.whitepages.com

ONLINE SITES TO FIND PROPERTIES

Here are some online auction sites to get you started. There are many other sites out there waiting to be found. I came across these by researching counties and making phone calls; that is how you learn about them! Please make sure that you read all of the documentation on these sites before bidding! I will post more in the future on using these sites and maximizing our opportunities online.

1.http://www.nysauctions.com - New York
2.http://www.tax-sale.info - Michigan
3.http://www.grantstreet.com/
4.http://www.iltaxsale.com/
http://www.cooktaxsale.com
5.http://www.cosl.org/ - Arkansas
6.http://www.publicans.com/
7.http://www.pbfcm.com/
8.http://www.mvbalaw.com/tax_sales/index.html
9.http://www.rwblaw.net/
10.http://www.revenue.alabama.gov/advalorem/transcript/transcript.htm
11.http://lands.sos.state.ms.us/tfl/index.asp - Mississippi
12.http://www.shelbycountytn.gov/FirstPortal/dotShowDoc//dotContent/Government/CountyServices/PublicWorks/realestateindex.htm
13.http://www.douglascountywi.org/countyland/countyland.htm
14.http://www.bid4assets.com/help/index.cfm?fuseAction=TaxSale
15.http://www.ebayliveauctions.com/
16.http://www.wslca.org/


FOUNDATION – Tax Delinquency

FOUNDATION – Tax Delinquency:

Tax Delinquency – Why we have an opportunity

Counties need taxes to provide public services (roads, law enforcement, fire and emergency services, etc.). Counties collect these funds through real property taxes. County budgets are based on how much they expect to collect in property taxes.

When people can’t or don’t pay their property taxes, the county’s budget is affected since they aren’t receiving the amount they expected to receive. So they allow other people to pay those taxes for the delinquent property owner and may receive compensation for doing so. Each county sets the type of compensation. In general, there are four ways this happens as determined by each state or county.

Don’t Get Confused

Be careful not to confuse tax sales with “mortgage foreclosures”. They are two different things. If you use the wrong terminology when talking to the county, they will not give you the information you are looking for.

Two Types of Tax Sales

1) Tax Lien Certificates (Commonly referred to as “Liens”) - When you pay the taxes due, you receive a tax lien certificate. The owner will then have a period of time in which to pay you back with interest. The interest rate is specified by the state. If after that redemption period, they have not paid you back, you will be able to begin the foreclosure process and get the deed to the property. Ex. – Iowa (24% annual interest with a 2 year redemption period).

2) Tax Deeds (Commonly referred to as “Deeds”) - When you pay the taxes due, you get either the full deed to the property or a partial deed to the property which immediately conveys ownership to you. If you get the full deed, you can then sell the property immediately, hopefully for a good profit. If you get a partial deed, you may have to go through some additional procedures or wait until the property sells.

Four Types of States

1) Tax Lien States – In these states, only tax lien certificate sales occur.
2) Tax Deed States – In these states, only tax deed sales occur
3) Hybrid States – These states do both tax lien certificate sales and tax deed sales depending on the county. Ex. – Florida (the first two years the county conducts a tax lien certificate auction and if, in the third year, taxes are still not paid, they conduct a deed auction to foreclose on the certificate(s) previously issued).
4) Redeemable Deed States – A few states do a tax deed sale with a redemption period. You receive a deed to the property but it can be redeemed within a period of time and given back to the property owner. Ex. – Texas (winner gets deed with a redemption period of 2 years for homestead or agricultural land or 6 months for all other land – 25% penalty attached – not an interest rate).

What to Expect

WHAT TO EXPECT:

Congratulations on making the decision to change your life through real estate. I am delighted to be your mentor for this exciting program. I will do everything in my power to help you make money as soon as possible, but remember that this business and success depends on your determination. I am excited to be able to work with you.

As your coach I am committed to providing you with the very best information available. I will help you to apply what you learn in the most efficient way. We are creatures of habit so please get in the habit of using all of our resources to help you reach your goals. My mission is to help you to be successful.

Our meetings are set up once per week. They are generally 25 to 30 minutes in length. I always strive to be on time, but if I am running a bit late please be patient. I pride myself on consistency, but at times things may come up. If I cannot make it to our meeting I will see to it you are notified. I will do so on the phone if possible, but have also been known to do so via email if it's an emergency.

One of the most important aspects in this coaching program is consistency. I want to make sure we are holding our meetings every week if possible. I cannot reschedule if you're not progressing as fast as you would like. That is all the more reason to meet, and I will help you. It is anticipated that we will be meeting at the same time each week unless otherwise arranged. Please be sure to give me at least 24 hours of notice if you will be unable to make our meeting.

I have developed this Blog (website) to help you throughout our meetings. I am always adding to it and anticipate it will be better in the future than it is now. It is not perfect, but I would like it to be. If you find any mistakes, or have suggestions please let me know.