How to Buy Tax Lien Certificates In Georgia for Big Profits

INTEREST RATES

What’s the Georgia tax lien interest rate? The minimum payment is 20%. If they came back and redeemed it the next day, they have to give you back all your money plus 20%.

If the certificate stays outstanding, and the redeemable deed is outstanding for 366 days, then you’ll earn 30%.

Let me just do this over again and make sure you got it. At first, it sounds confusing, but this is a nice, simple system that really works for the people in Georgia and any of us who want to go there to bid.

The state at the county level does not sell tax lien certificates, and they do not sell just plain tax deeds. What they do is they sell a redeemable deed.

A POWERFUL R.O.R.

That means the property owner can come in at any time, and pay you back whatever you paid. However, they have to give you a 20% penalty. This is a powerful rate of return, 20% no matter what you do in the first year.

If it goes to the 2nd year, day 366, you make a minimum of 30%.

TAX DEFAULTED PROPERTY

Now, folks, I don’t make the rules. I’m just going to explain the system to you. Here’s what happens.

If a property goes into default, the local county will put the property in default for lack of payment. When it’s in default, if you come along and pay the taxes on that property, you’re going to get a redeemable deed.

That means the property owner is not going to vacate the property. You’re just going to get a piece of paper, very much like getting a tax lien. Now you own that piece of paper.

This is powerful and it’s exciting.

So, any day the property owner comes in to pay, day 5, day 25, day 250, whatever day they come in to pay, they have to give you back all your investment plus a minimum of 20%.

AUCTIONS

All the delinquent properties are auctioned in Georgia. which has 159 counties. That means they’re authorized to have 159 auctions every single month.

What I’m saying to you if this is your first exposure to this is, you don’t have enough life left to go to just the auctions in Georgia.

All right, these are redeemable tax deeds that they’re selling.

DAY 366

Those redeemable tax deeds could stay out for one year, and the 1st year you get 20%. If you go into the 2nd year, you get 30%. Third year, you get 40%. In the fifth year, you get 50 percent.

After the first year, if you own a redeemable deed, you can take action and go ahead and foreclose on the property.

If you’re my client, I’m going to tell you not even worry about that. Buy the certificate and let it roll at least into the 2nd year, day 366, and you’ll earn 30%.

159 COUNTIES

To know how to buy tax lien certificates in Georgia, it’s also important to understand why the counties sell them. What’s really going on here? Well, the local county has a problem.

There are a lot of local counties in Georgia. I don’t have time to show you a picture of a map, but there are 159 unique counties in the state of Georgia. Every one of them has the same problem.

What’s the problem? The counties have to pay for the school teachers. They have to pay to fix the roads and to take care of the buildings. They have to pay the police and the fire department.

So, they are going to charge property taxes, as all counties in the United States do. If people don’t pay, every county is authorized to have an auction every month.

Think about that. 159 auctions. There’s no way you’re going to get to all of them. All of those counties are going to sell a redeemable tax deed.

THE MORTGAGE

After the first year, if the property owner doesn’t come in and pay, then that’s your opportunity. You can go ahead and foreclose and force them either out of the property or to pay you. It’s going to be one or the other.

Georgia has some really large counties. They have probably 8 million people in the state.

Fulton County, Gwinnett County, Cobb County, all that area that’s metro Atlanta, you’re going to find a lot of properties there that are going to go into default.

Most states wipe out the mortgage. That simply means that when the auction takes place, the mortgage is deleted from the property. It’s wiped out regarding the property, but the property owner still has that mortgage to pay.

So, a mortgage isn’t wiped out for the person who still owes the mortgage. They’re the signatory to the mortgage.

That simply means they still owe it, but as far as you’re concerned, when you’re buying, the mortgage is wiped out in most states, not so in Georgia.

The mortgage stays with the property. It’s still an active mortgage, and you’ll have to start paying that mortgage.

Here’s the good part, you make a minimum of 20%. The bad part is the mortgage stays on the property. Keep those 2 items in the back of your mind.

SECURITY DEED

This lesson is all about how to buy tax lien certificates in Georgia, but they don’t sell tax lien certificates in Georgia.

They sell a redeemable tax deed, which the minimum payment in the first year is 20%. The subsequent year is 30%, then 40%, and then 50%.

Georgia doesn’t have mortgages. What they have is a promissory note, but they call it a security deed. It acts just like a mortgage, but it’s going to stay on the property.

Now, there are five different penalty states, and I’ll have classes on every one of them, but Georgia’s number 1. It will pay 20%. If you did it in Texas, you’d find it’s 25%. You’re getting the idea.

BIDDING

When you’re bidding at an auction, you need to know what the value of that property is.

You need to learn how to evaluate the property because if you bid too high, now what are you going to do with it? You won’t be able to sell it if you spend too much money.

So, auctions require that you learn how to evaluate. You learn how to be a bargain hunter.

BUY LOW & SELL LOW

You learn how to buy it low, and in my school where I teach people, I want you to buy it low, and then I want you to sell it low.

In other words, I want you to buy it and then quickly sell it to make a profit, so you don’t have to hang around and do all that fixer-upper work.

FIXER-UPPERS

Am I negative on fixer-uppers? Yes, because it costs you a lot of money, and it takes a lot of time.

Now, if you’re a fixer-upper person, and you’re watching me right now, you’re saying, “Oh, Ted, I know how to do all that,” but most of my clients don’t.

Most of my clients are 45 to 105. They’ve got this gray hair. They’re really investors. So, I teach it from an investor standpoint.

My strategy always is to buy low, sell low, and do it fast.

There are 5 other states that have redeemable tax deeds. I’m going to have classes on each one of them, but another one you want to know about is Texas.

Texas and Georgia are the most popular.

AUCTION CLASSES

Do we have auction classes? Well, absolutely. We have classes on everything.

We have basic classes on tax liens and tax deeds, courses where you can actually go to the auction with one of our coaches.

We have the best coaching in the world. How can I say that? Because our coaches are all 60 years old. They’ve all been doing it for at least 10 years  Our coaches have purchased and resold over 200 tax-defaulted properties.

No group in the world’s purchased 200 tax-defaulted properties and resold them. No group in the world that I know of personally.

If you’re not already part of my community, I want to invite you to come on board. I’ll give you a free gift. It’s a 1-hour mini-course all about tax lien certificates and tax deeds. If you’d like to do that, we’d love to have you be part of it.