IS ALABAMA A TAX LIEN OR TAX DEED STATE?
Is Alabama a tax lien or tax deed state, and how can you earn money there? Are you confused about the difference between tax liens and tax deeds? Do you want to know what it means if you reside in a tax lien or tax deed state?
Today I’m answering the question, “Is Alabama a tax lien or tax deed state?” You’ll be happy to know I’m going to teach you all the ins and outs of Alabama, and I’m also going to show you some insider tips on how to make money
I’m Ted Thomas, and I’ve been doing this for 30 years. For the first 5 years, I just did this as an investor, but I got so many questions that I started writing them down.
I created a few audio courses, DVDs and CDs, then I did videos. The next thing you know, I’m in the business of educating people and ended up as the authority on this subject. People come from all over the world to learn. Welcome aboard.
Want to learn more about bargain real estate? Would you like to buy nice homes for pennies on the dollar, and without a mortgage? Or earn outrageous interest rates secured by real estate? Then you don’t want to miss this FREE class.
IS ALABAMA A TAX LIEN OR TAX DEED STATE? – ABOUT TAX LIENS
Now, let’s talk about Alabama. Is Alabama a tax lien or tax deed state?
The state legislature made the law that if you don’t pay your property tax, the local government will issue a tax lien certificate. Alabama sells tax lien certificates, and they pay 12%.
Those tax lien certificates are issued in all 67 counties. So what does that mean?
It means a local person didn’t pay their property tax, and if the local money isn’t coming in, the wheels of government are going to stop.
IS ALABAMA A TAX LIEN OR TAX DEED STATE? – COST OF A TAX LIEN
What the local government does is sell a tax lien certificate. You can buy one. I can buy one. You can buy it for $50, $500, or $5000.
When you buy a tax lien, that money goes to the county. Now the county finally has money.
What do you have? You have a piece of paper. It’s called a tax lien certificate, and that tax lien certificate is valuable.
First of all, the homeowner can’t sell the house, they can’t do anything on that property until you get paid. You get paid by law.
The legislature and the local county have protected your money. You will either get paid, or you will get that property without a mortgage.
IS ALABAMA A TAX LIEN OR TAX DEED STATE? – ANNUALIZED RATE OF RETURN
So, the county sells a tax certificate, you buy it, and it usually pays an annualized rate of return. That’s what this one pays. That means over one year’s time, this tax certificate will pay you 1% every single month.
1% doesn’t sound like much, but it’s a bundle when you think about Bank of America or Wells Fargo. They’re paying 1% for a year. So you’re making 12 times what you would at a bank. That’s a nice return.
IS ALABAMA A TAX LIEN OR TAX DEED STATE? – SMALL VS LARGE COUNTIES
You invest with the local county. Some of these counties are big, and some of them are small.
In a big county, because it’s populous and there are a lot of people, there will be a lot of tax certificates.
In a small county, there will only be a few. You can buy as many as you want.
There are many states in the United States, and approximately half of the states sell tax lien certificates. The other half sell tax deeds.
IS ALABAMA A TAX LIEN OR TAX DEED STATE? – HOW TAX LIENS WORK
Here’s how a tax certificate works. The county sells it to you. If you don’t get paid, you can petition the county, and the property will be transferred to you with no mortgage.
That’s the key to what we’re talking about because you paid just the back taxes. That could be 1% or 2% of the property’s assessed value.
For example, for a property valued at $100,000, 2% would be $2,000, That’s a small tax lien. So, if you invested $2,000, and they didn’t pay, you’d end up with a $100,000 house for $2,000 dollars with no mortgage. How good is that?
IS ALABAMA A TAX LIEN OR TAX DEED STATE? – TAX LIEN INTEREST RATES
I’m answering the question, “Is Alabama a tax lien or tax deed state?” and it is a tax lien state.
Tax lien certificates in Alabama pay 12%. In Florida, they pay 18%. In Iowa, 24%.
You can learn all of this. Why? Because we teach you how to do this online.
In 67 counties in Alabama, you can buy a tax lien certificate. They’re always available, and they’re going to sell them at least once a year at an auction.
I have a free gift for you. It’s a streaming video mini course that will teach you the basics of tax lien certificates and how you can make big profits in tax defaulted property. Be sure to take advantage of this opportunity.
IS ALABAMA A TAX LIEN OR TAX DEED STATE? – TAX LIEN AUCTIONS
Keep in mind they’re not going to have an auction every single month.
You can find the tax lien certificate auctions online, or at the county, or you could find them in the newspaper.
The auction information and tax lien properties list are going to be available in all those places.
IS ALABAMA A TAX LIEN OR TAX DEED STATE? – WHY COUNTIES SELL TAX LIENS
Why does the county sell tax lien certificates? Because the county has a whole pot full of bills. What bills do they have? They’ve got to pay the school teachers. That’s a big check every month. They have to maintain those schools.
They have to take care of the roads. Also, what about the police department and the firefighters? You’re getting the idea. The county has a lot of bills to pay. If the county doesn’t get paid, what are they going to do?
Some counties will issue a tax lien certificate. That’s what we’re talking about today. However, in other states, the counties will issue a tax deed.
If they issue a tax lien, they get money instantaneously and can pay their bills. That makes the county happy.
IS ALABAMA A TAX LIEN OR TAX DEED STATE? – MOST TAX LIENS ARE REDEEMED
Sooner or later, most homeowners will come forward and pay their taxes. When they pay, they’re going to get their hand slapped because they’re paying late. They’re going to pay a penalty.
In the case of Alabama, it’s going to be 12%. They’re going to have to pay a 12% penalty for each year that it’s outstanding.
IS ALABAMA A TAX LIEN OR TAX DEED STATE? – A BENEVOLENT INVESTMENT
Tax lien certificates are very benevolent.
Why? Because the state is not going to kick the property owner out.
The property owner is going to be able to remain in the property, and they’ll have one year to pay you.
IS ALABAMA A TAX LIEN OR TAX DEED STATE? – WHAT IS A TAX DEED?
What about some of the other states? Well, the other states do things differently. States like New York or California, Washington or Oregon, all sell tax deeds.
A tax deed means the property owner did not pay, but that county is not benevolent.
The county has the power to seize the property, confiscate it and then sell it at auction. The property owner loses the property; they are kicked out.
If you buy a tax deed, you’re actually buying the property that the county already owns.
In many cases, though not all, they’ve cleared the title, and they will sell the property to you without a mortgage in almost all cases. So that’s a nice deal.
IS ALABAMA A TAX LIEN OR TAX DEED STATE? – BIG PROFITS
Either way, with tax liens or tax deeds, you can make money. People make a lot of money doing this.
I could tell you about Peggy, a student who bought 3 little certificates. She invested a couple thousand dollars, and she got paid 18% on each one of those.
I could tell you about Puff Darlin. She lives in Jacksonville, Florida, and she bought 7 properties her first year. Those were tax deeds. She made over $100,000 that year.
I could tell you about Rocco. What does Rocco do? He likes to buy tax lien certificates in Tampa, Florida. He gets 18% on each certificate.
IS ALABAMA A TAX LIEN OR TAX DEED STATE? – BEST PLACE TO INVEST
Tax liens always work. They’ll always be here. Everything I’m teaching you is over 200-years old. I didn’t invent it. I just created systems so you could learn it. You can learn it quickly, and you can learn online or offline.
Where do you want to invest? I don’t know, but you can do it in every state.
Here’s an easy state to start with. The one you live in is the best place.
However, if you want to buy tax liens, figure out which states sell tax lien certificates and then start online.
If you want to buy tax deeds, same situation. If your state sells tax deeds, start doing it at home. Don’t start flying to Miami to do it. Don’t jump on the plane and go to Washington.
IS ALABAMA A TAX LIEN OR TAX DEED STATE? – DECEMBER AUCTIONS
Every year, at the end of the year, everybody gets antsy. They say, “I’ve got all this money saved up.”
Well, it just so happens that in Washington, like in Pierce County and Snohomish County, they’ll have auctions in December.
Everybody’s saying, “Oh, nobody’s going to do anything in December.”
The best auctions with people making $40,000 or $50,000 on a deal happen then because nobody shows up at the auctions. What if they’ve got 100 properties and 50 people show up? Well, you’ve got some good choices.
The point is to do this in the state you’re in to start with. Learn the system. Remember, you can start with $50, $100, or $500. You don’t have to have hundreds of thousands of dollars.
IS ALABAMA A TAX LIEN OR TAX DEED STATE? – LOOK BEFORE YOU BUY
You learned a little bit about making money today. Now let’s talk about avoiding mistakes. I’ll tell you about the two biggest mistakes.
The first one is people don’t look at the property. What if it’s a piece of junk?
If you’re in Phoenix, Arizona and there are 15,000 tax lien certificates to choose from, and you just pick one and decide to bid on it, well, that’s just luck if it works out.
Luck is not a very good business strategy, is it? You know it’s not, so you don’t want to do that. You need to look at the property.
IS ALABAMA A TAX LIEN OR TAX DEED STATE? – HAVE AN EXIT STRATEGY
It’s the same for tax defaulted property. They call those tax deeds when you buy them.
When you buy a tax deed, why are you buying it? Hopefully, you’re buying it so you can get it at rock bottom price. However, when people go to an auction, they get all excited and want to win.
Forget about winning. What you want is a bargain. I want you to buy it at 10 cents, 20 cents, or 30 cents on the dollar. That’s my limit. I tell you to stop at 30 cents on the dollar.
Why do I tell you to stop? Because you need margin to sell it. I’m not going to teach you to fix it up, but I’m going to teach you to sell it and let the fixer-upper people buy it from you.
CONCLUSION
We hope you learned a lot from Ted’s lesson, “Is Alabama a Tax Lien or Tax Deed State?”
Alabama is a tax lien state that pays a rate of up to 12% interest on tax lien certificates.
When you purchase a tax lien certificate, you invest directly with the county, and you’re paid by the county.
You get all of your money back plus the interest when the property owner comes in to pay the tax lien. Most property owners will pay, which makes tax lien certificates an excellent passive investment.
However, if they don’t pay, then you will get the property because tax lien certificates are secured by real estate.
Tax lien certificates are one of the safest investments in the USA, if you know what you’re doing, and Ted Thomas can teach you how to do this.
There’s no one more qualified than Ted, America’s leading authority on tax lien certificates and tax defaulted property investing, to show you how to profitably purchase tax liens and tax deed property.
Ted Thomas is the only one who provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops & web classes, and personal coaching.
If you’d like to learn how to earn lucrative profits easily, painlessly, and safely, you can get started today at no cost by taking advantage of Ted’s FREE Master Class and discovering how you can capitalize on investing in tax delinquent properties.
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