IS KENTUCKY A TAX LIEN OR TAX DEED STATE?
Is Kentucky a tax lien or tax deed state? Find out from Ted Thomas, America’s leading authority on the subject, and also learn more about what tax liens and tax deeds are, how they work, and how you can profit from them.
I’m Ted Thomas, and today I’m going to answer the question, “Is Kentucky a tax lien or tax deed state?”
I’m also going to give you some insider tips on how to make money, and show you some mistakes to avoid. Newcomers make 2 big mistakes, and I’ll talk to you about those.
If you want more information, I created a mini course for you. It’s a free online course. All you have to do is decide that you want it. It will teach you about tax liens and tax deeds and takes about an hour. Be sure to take advantage of it.
IS KENTUCKY A TAX LIEN OR TAX DEED STATE? – TAX LIENS
Is Kentucky a tax lien or tax deed state? It’s a tax lien state.
Kentucky has a lot of counties. I’m talking about 120 counties.
All of those counties are authorized by the legislature of the state to have a tax lien sale, but what you really care about is why do they even have a tax lien sale? Because someone didn’t pay their property tax.
If that property owner doesn’t pay, the government is going to have a shortfall. The government is concerned about that, so what they do is sell tax lien certificates.
Tax lien certificates are nothing more than a piece of paper that authorizes the person who owns the certificate to make a nice return.
IS KENTUCKY A TAX LIEN OR TAX DEED STATE? – INTEREST RATE
In the state of Kentucky, you can earn a 12% return on your money, and you could do that just by raising your hand at an auction and buying a certificate.
You can’t give money to Ted Thomas. You always give your money directly to that county. That means your money is protected. It’s safe. As a matter of fact, the property tax code protects your money.
So, these investments are predictable, certain, and they’re secure.
IS KENTUCKY A TAX LIEN OR TAX DEED STATE? – A SECURE INVESTMENT
If you’re saying, “Well, what’s the security, Ted?” here’s what your security is.
When you raised your hand and bought that certificate, the local government said, “We’re going to make sure you get paid.”
If the property owner didn’t pay them, then you’d be concerned if you are going to get paid. However, you have an ace in the hole. What is that? If you don’t get paid on that tax certificate, you’re going to end up with the property.
What did you pay for that property? You only paid the back taxes and a few penalties. So if you don’t get paid, now you get a property for absolute pennies on the dollar. That’s a nice way to buy real estate, I’d say.
IS KENTUCKY A TAX LIEN OR TAX DEED STATE? – WHAT IS A TAX LIEN ?
120 counties throughout the state of Kentucky will sell these tax lien certificates.
Here’s a brief explanation of what a tax lien certificate is. It’s just a lien against the property that’s filed by the county. That makes it the first lien. It’s always the first lien.
Why do they have this lien? Because they want to force the homeowner to pay taxes, and pay them on time.
IS KENTUCKY A TAX LIEN OR TAX DEED STATE? – COUNTIES SELL TAX LIENS
The county needs money. They need a lot of money because they have a lot of bills to pay. In order to pay those bills, they need every property owner to pay their tax.
If the property owner doesn’t pay the tax, how on earth would the county pay for the fire department, police department, and school teachers? They all have to be paid, and the buildings have to be maintained.
So the county has a lot of bills to pay, and in order to pay those bills, they need all of the property owners to pay.
If the property owner doesn’t pay, they sell a tax lien certificate to get the money to pay their bills.
IS KENTUCKY A TAX LIEN OR TAX DEED STATE? – TAX LIEN INVESTING
You buy the tax certificate because you’ve been making 1% at the bank, because you’re maybe a conservative investor. You’re worried about your money, so what do you do? You invest your money.
If you invest in tax lien certificates, you can earn up to 12% in the state of Kentucky.
Other states pay even higher amounts. Why would you be interested in other states? Well, Florida pays 18%. In Texas, you could earn 25%. In Iowa, you could earn 2% per month or 24% annually. So think about that.
IS KENTUCKY A TAX LIEN OR TAX DEED STATE? – BUYING TAX LIENS ONLINE
Why am I telling you about those states while I’m talking about Kentucky? Because I’m going to teach you how to do this online.
Wouldn’t it be nice to do that online? You could sit there on your rusty dusty, look at that screen, and you could be making money from home. How about that?
I have a mini course for you if you’re interested in that. You’re welcome to it, and it’s free. Would you like to buy nice homes for pennies on the dollar? Or earn outrageous interest rates secured by real estate? Then be sure to take advantage of this free online course.
IS KENTUCKY A TAX LIEN OR TAX DEED STATE? – A SAFE INVESTMENT
Now, you can’t give money to Ted Thomas. There are no brokers to pay, no middlemen; all of your money goes directly to the county.
I tell people, “This is the safest, most lucrative investment in America today.”
IS KENTUCKY A TAX LIEN OR TAX DEED STATE? – ABOUT TED THOMAS
Who am I to tell you that? Well, I’ve been doing this for about 30 years. The first 5 of those years, I started out as an investor. I just invested because I wanted a safe, secure investment, then people started asking me questions.
The more questions I got, the more I started writing them down, and pretty soon I wrote a book about it. Then I created some audios and CDs. Now, I’m doing streaming videos.
I’ve taught a lot of people to do this, hundreds of other people.
IS KENTUCKY A TAX LIEN OR TAX DEED STATE? – A LUCRATIVE INVESTMENT
I’ll show you how you could make money, $1,000 dollars a year, $10,000 dollars a year. I have people that make up to $100,000 dollars a year doing this business.
Does it take a long time? Well, how long did it take to walk in and sit down at your computer? That’s how soon you could start making money.
IS KENTUCKY A TAX LIEN OR TAX DEED STATE? – GETTING PAID
When do you get paid? When the homeowner comes in and pays the tax, the county will call you.
If you bought online, they will just put the money in your account. So it’s an electronic transaction, and you don’t even have to meet people. You can do this sitting at home.
Tax lien certificates have been available for a little over 200 years. People have learned how to do it, and it’s something you can do for the rest of your life.
IS KENTUCKY A TAX LIEN OR TAX DEED STATE? – TAX LIEN STATES
Today I’m answering the question, “Is Kentucky a tax lien or tax deed state?” So let’s talk about tax lien states.
You can buy tax lien certificates in half of the states in the United States. The other half of the states sell tax defaulted properties.
I want to tell you a little bit about tax deeds, but first, let’s talk a little more about tax lien certificates.
They pay you the interest rate prescribed by the state. The legislature says 18% in Florida and 24% in Iowa.
In Kentucky, the legislature says all 120 counties will pay 12%. That’s what it is in the state of Kentucky, but you can buy in any state because you can do that online.
IS KENTUCKY A TAX LIEN OR TAX DEED STATE? – A BENEVOLENT INVESTMENT
What are tax deeds? You live in a benevolent state, or you’re researching a benevolent state, because the benevolent state is Kentucky.
Why are they benevolent? Because the property owner doesn’t get kicked out of the property. They have to pay a 12% penalty because they were late in paying their taxes.
Think about what I just said. If you have a credit card in your pocket, and you pay it late, you pay a penalty.
It’s the same thing with your property taxes. If you don’t pay them on time, you’re going to pay up to a 12% penalty in the state of Kentucky. That money takes care of the government.
IS KENTUCKY A TAX LIEN OR TAX DEED STATE? – WHAT ARE TAX DEEDS?
In the other states, like New York and California, those states are not benevolent. If you don’t pay the tax, they’ll send a demand letter. The demand letter, under the rules of law, is nothing but a a notice.
The notice says, if you don’t pay your tax we are going to confiscate the property, and they’ll put you out on the street.
IS KENTUCKY A TAX LIEN OR TAX DEED STATE? – TAX DEED AUCTIONS
What do they do when they seize it? Well, they don’t want any more property, so they will sell it. They’ll sell it at auction.
Those are called tax deed auctions, and some people call them a tax defaulted auction.
What do they sell these properties for? The government wants taxes, so they sell them at very close to the amount of the back taxes. They add on money for penalties and to pay auctioneers, things like that, but they sell property for back taxes.
IS KENTUCKY A TAX LIEN OR TAX DEED STATE? – A MORTGAGE-FREE PROPERTY
Here’s the important thing that you need to digest. On a tax lien or a tax deed, the mortgage is wiped out. The mortgage is wiped off the property. It’s extinguished.
The legislature made that rule. Why did they make that rule? Because they’re going to force the homeowner to pay their taxes or give up the property. It’s one or the other.
IS KENTUCKY A TAX LIEN OR TAX DEED STATE? – WHAT ABOUT THE BANK?
Maybe you’re saying, “What about the poor banker? Are they going to put up with that?”
Let’s not worry about the poor bankers because they’re not poor bankers at all.
The bank was given notice at the exact same time that they told the property owner, “We’re going to seize your property.” They also tell the bank they’re going to seize that property.
The government only wants one thing once you own that property. They want property tax.
So, they tell the banker and anybody that’s on the title, “If you don’t make your payment, guess what’s going to happen? We’re going to take the property,” and they do that.
IS KENTUCKY A TAX LIEN OR TAX DEED STATE? – LOOK BEFORE YOU BUY
Newcomers make big mistakes, so let’s make sure you avoid those mistakes.
The first big mistake that I see people make is they buy either a tax lien or a tax deed, and they have not looked at the property.
I’m going to tell you, don’t buy a tax lien or tax deed unless you’ve looked at the property.
What if the property had burned down or if there had been a windstorm? What if there had been some crisis on that property, or it was built next to an oil refinery? Is that what you want? It’s going to not smell too pretty in that property.
IS KENTUCKY A TAX LIEN OR TAX DEED STATE? – HAVE AN EXIT STRATEGY
The second big mistake, and many investors do this; I’m amazed that it still happens, but people buy property, and they have no exit strategy.
See, the word “auction” gets you excited. Everybody’s excited about going to an auction, and they want to win the bidding.
Well, you don’t want to win the bidding by paying too high of a price, I can tell you that.
If you don’t have a plan to sell that property or know what you’re going to do with the property, then for goodness sake, don’t bid at the auction because you may way overbid. You may overbid on the property.
I’ve seen people bid 120% of the value. They paid more than the property was worth because they didn’t go look at it and had no idea what they were going to do with it.
Always have an exit strategy. Know what you can sell it for before you buy it.
I have a mini course for you if you’re interested in that. Just go to the link to access it. You’re welcome to it, and it’s free.
We hope you enjoyed Ted’s lesson, “Is Kentucky a tax lien or tax deed state?”
Kentucky is a tax lien state, and pays up to 12% interest on tax lien certificates.
Kentucky has 120 counties, so there are plenty of tax sales to choose from. You invest directly with the county when you purchase a tax lien certificate, and you are paid by the county.
When a property owner does not pay property tax in a tax lien tax state, the county will issue a tax lien certificate that can be purchased at an auction. Many auctions are online today.
If you purchase a tax lien certificate, you will get all your money plus the interest when the property owner comes in to pay the back taxes plus the penalties.
Tax lien certificates are secured by real estate. So if the property owner doesn’t pay, then you get the property, and you get it without a mortgage.
95% to 97% of property owners will pay the tax, making tax lien certificates an excellent passive investment. However, if they don’t pay, then will get the property, and you’ll get it for pennies on the dollar if you know what you’re doing.
There’s no one more qualified to teach you than Ted Thomas, America’s leading authority on tax lien certificates and tax defaulted property investing.
For over 25 years, Ted’s been teaching students the secrets, strategies, and safest ways to profit from investing in tax delinquent property.
Ted Thomas 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 from bargain real estate easily, painlessly, and safely, you can get started now at no cost by taking advantage of Ted’s FREE Master Class.
So act now and learn the secrets of tax lien and deed investing with this free online course.