IS ILLINOIS A TAX LIEN OR TAX DEED STATE?
Is Illinois a tax lien or tax deed state? Each state is different. They can be a tax lien state, a tax deed state, or even both!
I’m Ted Thomas, and today I’m going to answer the question, “Is Illinois a tax lien or tax deed state?” I’m also going to give you some tips on how to make money. Newcomers make a lot of mistakes, and I’ll cover that as we close out.
Want to learn more about bargain real estate? Would you like to buy nice homes for pennies on the dollar? Or earn outrageous interest rates secured by real estate? Then you don’t want to miss this FREE class that Ted Thomas has for you.
IS ILLINOIS A TAX LIEN OR TAX DEED STATE? – A PLEASANT SURPRISE!
Is Illinois a tax lien or tax deed state? You’re in for a big surprise.
Illinois pays 3% for every month that a tax lien certificate is outstanding. 3 times 12 is 36% interest on your money if you’re buying tax liens in Illinois. Why would you want to go anywhere else? You wouldn’t.
IS ILLINOIS A TAX LIEN OR TAX DEED STATE? – ONLINE AUCTIONS
How does a tax sale work in Illinois? In the past, these auctions took months, but now, everything’s going online.
For example, years ago in Cook County, Illinois, when they wanted to sell tax lien certificates, every tax lien is an individual auction so they would show up in a big auction room with three by five cards.
They would read the property number and wait for a bid, and the bids could go up to 36%.
Now, they do all that online.
IS ILLINOIS A TAX LIEN OR TAX DEED STATE? – TAX LIENS
Let’s talk a little bit more about tax lien certificates and how they work.
Tax lien certificates are issued on privately-owned properties, whether it’s a ranch, a farm, a house, or whatever it might be. When the taxes are not paid, the local government will issue a tax lien certificate.
There will be thousands of these certificates.
For example, I mentioned Cook County earlier. It’s not unusual for Cook County to have 100,000 certificates available. That means 100,000 property owners in Cook County did not pay their property tax.
The government needs money, so they’re going to auction those certificates.
Thousands are available all across the state of Illinois, and they pay up to 36%.
IS ILLINOIS A TAX LIEN OR TAX DEED STATE? – A SAFE & SECURE INVESTMENT
If you haven’t been exposed to this before, you need to understand this is a very low risk investment.
When you raise your hand at an auction, or you do it online, either way, you’re going to invest with the government, and then you’ll get a check back from the government. That makes this a predictable certain and secure investment.
How is it secured? It’s secured by the property.
IS ILLINOIS A TAX LIEN OR TAX DEED STATE? – BARGAIN REAL ESTATE
If you didn’t get paid on a tax lien certificate, you would get the property.
How on earth is that going to happen? Well, it’s going to happen by state law. The legislature makes the law. The local county administers the law, and they sell the certificate.
If you haven’t gotten paid on the certificate, and the time is due, then they’re going to tell you, “Go ahead and take the property.”
You’ll be able to, by law, take that property, and what did you pay? Well, you only paid the back taxes.
IS ILLINOIS A TAX LIEN OR TAX DEED STATE? – MORTGAGE-FREE PROPERTY
Whenever a tax auction takes place, whether it’s a tax lien certificate auction or a tax deed auction, what happens?
The mortgage is wiped out.
The local government wipes out the mortgage because they’ve noticed the bank; they’ve noticed anybody that’s on title and said, “Look, we’re going to take this property. We’re going to seize the property for nonpayment of taxes.”
So when they seize the property, you’re going to end up with that property, and you will only have paid the back taxes plus any fees to get the thing closed up.
IS ILLINOIS A TAX LIEN OR TAX DEED STATE? – ANYBODY CAN DO THIS
This is a dynamite investment. Anybody can do it.
You could start with $50. You could start with $500 or $50,000. It doesn’t matter.
You can buy tax lien certificates in half of the counties in the United States. That means there will be millions of certificates available, and you could buy those certificates online.
If you want more information, I created a mini course for you. It’s free. All you have to do is decide that you want it. The mini course teaches you about tax liens and tax deeds and takes about an hour. Be sure to take advantage of it.
IS ILLINOIS A TAX LIEN OR TAX DEED STATE? – RATE OF RETURN
Is Illinois a tax lien or tax deed state? It’s a tax lien state, but it pays more than any other state in the United States.
It pays 36% annualized. That means you can make 3% a month.
So, if you had an Illinois tax lien certificate that paid you in 90 days, you would make 9%. Compare that with the local bank that’s paying one percent, and many banks are even paying less than that.
IS ILLINOIS A TAX LIEN OR TAX DEED STATE? – BUYING TAX LIENS WITH A CREDIT CARD
People ask me this question, “Ted, I don’t have a lot of cash lying around. Can I use a credit card?”
Let me give you a quick example because you’ll love this.
I have a coach that’s worked for me now for about 10 years. When I taught him how to do this, he said, “Well, Ted, I’m in Michigan, and I can buy using a credit card.”
I said, “No, you can’t do that.”
Well, he bought 60 properties in six years. He used a credit card, and he sold every one of them on a contract of sale. That means he never went to the bank, and his clients never went to the bank.
He could buy a property, meet you in the driveway, and sell it that afternoon. He bought it with a credit card and sold it with a contract to sale.
IS ILLINOIS A TAX LIEN OR TAX DEED STATE? – REDEMPTION PERIOD
When you buy one of these tax liens or tax deeds, they all are terminated at a certain date. In other words, that’s your payday.
When are you going to get paid?
Well, in Texas, they only have 180 days to pay you. If they don’t pay you, then you get the property.
In Arizona, it could go three years. A new tax certificate each year, and yes, you’d have to pay it. But, at the end of three years, you’d get the property.
In Florida, it’s two years.
So, you’d never want to go to a tax lien or a tax deed auction without reading the rules and knowing when you’re going to get paid.
IS ILLINOIS A TAX LIEN OR TAX DEED STATE? – MISTAKES TO AVOID
Let’s talk about a few mistakes that I don’t want you to make. This is important.
Mistake number one: Don’t buy a tax lien certificate without looking at the property.
I’ve seen countless investors do this. They’ll have a list of all the certificates, and they just kind of randomly pick one. They see the number, and they they buy that certificate. But, they haven’t looked at the property.
What if they get there and it’s next to an oil refinery? Or what if there was a chicken farm right next door?
You really don’t want to buy any tax lien certificate without looking at the property.
Mistake number two: This is an even bigger one that I’ve watched many investors make. They buy a tax lien or a tax deed. They don’t have to worry about the mortgage because that’s been wiped out.
However, they haven’t looked at the property, so they don’t have an exit strategy.
IS ILLINOIS A TAX LIEN OR TAX DEED STATE? – EXIT STRATEGY
Let me give you a little example of that. If the property is worth $100,000 and you bid $95,000, there’s not too much margin. So, you want to look at the property.
If you look at it and say, “Well, this is a pretty decent property,” and if you could buy it for 20 cents on the dollar, well, now it’s a $100,000 value, and you bought it for $20,000. You’ve got a lot of margin there.
If you buy it low, then sell it low, and get rid of it, you can turn it into cash flow.
In order to know how much you’re going to buy it for, you first have to know how much you can sell it for.
However, if you haven’t looked at the property, you might overbid, especially if you get caught up in the excitement of the auction.
CONCLUSION
We hope you enjoyed Ted’s lesson, “Is Illinois a Tax Lien or Tax Deed State?”
Illinois is a tax lien state, and it stands out because the Illinois state tax lien payoff is huge. Illinois pays the highest interest rate on tax lien certificates in the entire nation, a whopping 36%.
The auctions are online these days, so you can purchase tax liens from anywhere you have an internet connection.
A tax lien certificate could cost $50, $500, or $50,000. They come in all prices to suit every budget, so there’s something for everyone.
A tax lien certificate is secured by real estate. If you don’t get paid, then you get the property, and you get it without a mortgage. Since you could end up owning the property, it’s important to take a look at it before you bid on it.
However, 95% to 97% of tax lien certificates are redeemed, so the odds are much higher of receiving the interest, making this an excellent passive investment.
If you need some help getting started, Ted Thomas can show you how. For over 25 years, Ted’s been teaching students the secrets, strategies, and safest ways to profit from investing in tax delinquent property.
There’s no one more qualified than Ted, America’s leading authority on tax lien certificates and tax defaulted property investing.
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 bargain real estate.
So act now and learn the secrets of tax lien and deed investing.
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