IS NEW JERSEY A TAX LIEN OR TAX DEED STATE?
Is New Jersey a tax lien or tax deed state, and what’s the difference between a tax lien or a tax deed state? Find out, and learn how you can profit in New Jersey!
I’m Ted Thomas, and today I’m going to answer the question, “Is New Jersey a tax lien or tax deed state?”
I’m also going to give you some tips about how to make money, and in addition to that, I’m going to show you the mistakes that you want to avoid.
What you’re going to learn is going to surprise you, not only surprise you, but you’re going to learn the reason why you want to buy tax lien certificates. You’ll learn what the risks are and how to make some pretty big money.
Is New Jersey a tax lien or tax deed state? Surprise, surprise. Tax liens are what they sell in New Jersey.
New Jersey pays 18% per annum. Now, keep in mind per annum means you only get a percent and a half every single month.
New Jersey has 21 counties. The largest counties are where you’re going to find a lot of tax lien certificates.
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IS NEW JERSEY A TAX LIEN OR TAX DEED STATE? – TAX LIENS VS TAX DEEDS
I think it’s important to understand the difference between tax liens and tax deeds, so let me take a minute and explain that.
If your property went to tax auction, it would be as a result of not paying taxes. Thousands of property owners are not going to pay their tax.
When they don’t pay that tax, there’s a problem at the county. Of course, the tax delinquent property owner had a problem, but now at the county they have a problem too.
The problem simply is this: now they’re not going to be able to pay the police, the fire department, fix the roads, and pay for the hospitals.
What about the school teachers? They’re all paid by the county. So, the county has a lot of different bills to pay.
Now, let’s think about this a little bit. The county doesn’t have money, what are they going to do? That’s how the tax lien came about.
The county issues a tax lien because you haven’t paid your taxes, and now the property is in default. Generally speaking, there are going to be thousands and thousands of tax lien certificates.
IS NEW JERSEY A TAX LIEN OR TAX DEED STATE? – HOW TAX LIEN CERTIFICATES WORK
In a place like New Jersey, don’t be surprised if statewide they have 20,000, 30,000, or even 40,000 tax lien certificates.
How do they work? Well, tax liens work one way. They just issue a piece of paper. What is that piece of paper? It’s a lien against the property. It simply says, “If you don’t pay the property tax, they’re going to sell the lien.”
When they sell the lien, anybody can buy it. I like to buy them because I know I can make up to 18% in New Jersey.
IS NEW JERSEY A TAX LIEN OR TAX DEED STATE? – THE DOWN-BIDDING PROCESS
No one’s going to tell you about this, but I’ll tell you right now before you go to the auction; it’s a down bidding process.
It starts at 18, goes to 17 and a half, then 17, then 16 and a half, and so on. It will continue all the way down to one quarter of one percent.
When you buy a tax lien, you do not get the property. All you have is a right in that property. That right is this, if the property owner doesn’t pay you and buy your certificate back, you’re going to get the property.
IS NEW JERSEY A TAX LIEN OR TAX DEED STATE? – A SAFE INVESTMENT
This is the safest and most lucrative investment in America today. How did it get that way?
Well, the government made the rule, and here’s the rule: you invest with the government, and you’re going to get a check back from the government. That makes this predictable, certain, and secure, a nice investment.
If they don’t pay you, the law says that you’re going to get the property. Just think about that a little bit.
IS NEW JERSEY A TAX LIEN OR TAX DEED STATE? – ABOUT TAX DEEDS
Now let’s talk a bit about tax deeds. A tax deed is altogether different.
Half of the states will sell tax deeds.
If you purchase a property sold at a tax deed auction, you actually get the property. How about that?
How much did you pay for the property? Well, you paid whatever the back taxes were.
IS NEW JERSEY A TAX LIEN OR TAX DEED STATE? – A MORTGAGE-FREE PROPERTY
In both cases, you may be worried about the mortgage, so let’s talk about that.
In the East, we call it a mortgage; in the West, it’s called a deed of trust, and in the South, it’s going to be a security. However, in all cases, it’s just an “IOU.” You say to the bank, “Give me the money; I’ll owe you the money.”
That’s all a mortgage is. There’s nothing complicated about that. But, here’s the beauty of tax lien certificates and tax deeds.
Whenever a tax lien certificate is sold at an auction, it wipes out the mortgage. The mortgage is done; it’s over. There is no mortgage on that property. It’s wiped out.
Now, you’re saying how can that happen? It happens because it’s the law in every county and every state.
Let’s go back to why all this took place. It all took place because the local county needs money to run the government. Now, you may not ever worry about that, but take my word for it, the government worries about it a lot.
The county has a lot of bills to pay. If they didn’t collect the money, the county would go bankrupt, and you wouldn’t have all the services you expect. With tax deeds and tax liens, all the county is trying to do is collect their money.
IS NEW JERSEY A TAX LIEN OR TAX DEED STATE? – SUCCESSFUL INVESTING
Who is Ted Thomas? I started 30 years ago doing this buying and reselling and making money myself. Then about 25 years ago, I started teaching the world how to do it.
That’s what I’m doing now, teaching people how to do this, and there are many examples of people making money. I’m not talking about small amounts of money. I’m talking about big amounts of money. I can give you testimonials from people all day long.
Some people buy tax lien certificates and invest $30,000, $50,000, or hundreds of thousands of dollars. Other people start smaller with $3,000 or $4,000, and they’re happy to do both ways.
IS NEW JERSEY A TAX LIEN OR TAX DEED STATE? – TAX DEED STATES
In places like California or New York, you’re going to find out those states don’t sell tax lien certificates. They sell tax defaulted properties. They call those tax deeds.
Those states are ruthless. By that I mean, if you don’t pay your taxes, they’re going to send you a notice. Remember, that’s due process.
They’re going to send you that notice, and when they do, they’re going to start a foreclosure. They’re going to take, seize, confiscate that property. They’re going to take it away.
IS NEW JERSEY A TAX LIEN OR TAX DEED STATE? – BUYING PROPERTY FOR BACK TAXES
The people who buy those get the deal of a century. How do we get that great deal? Because all we paid at a tax deed auction was the back taxes.
You raised your hand at that auction, and when the gavel came down, you owned the property. That means it’s your property to take care of. It’s yours to sell. If it’s got problems on it, it’s your property.
So, tax liens and tax deeds are completely different. The tax lien is easy. You just buy a piece of paper. That’s all you’re buying.
Now, let’s go to a place like Texas real quick. In Texas, they sell what’s called a “redeemable deed.” Today, we won’t have time for redeemable deeds because we’re concentrating on tax lien certificates.
Today we’re answering the question, is New Jersey a tax lien or tax deed state?
I have a free gift for you, a streaming video mini course that will teach you the basics of tax lien certificates and how to make big profits in tax defaulted property. You don’t want to miss this. It’s costs you nothing, and you have so much to gain.
IS NEW JERSEY A TAX LIEN OR TAX DEED STATE? – TAX LIEN STATES
Regarding tax liens, a lot of states sell tax liens. As a matter of fact, half of the states in the United States will sell tax lien certificates.
With tax lien certificates, you can earn up to 18% in New Jersey.
It’s the same in Florida, also 18%.
In other states, like South Carolina, it’s only 12%.
The lowest I’ve ever seen is in the state of Oklahoma where they paid 8%.
You need to know about those states. Part of the learning process always is there’s a footpath in front of you, and you just follow the path.
If you’ll do that, and get someone to guide you, you’re going to do very well at this because it’s a simple business. It’s been around for 200 years. I didn’t invent it. I just started doing it myself, then people started asking me questions.
The more questions I got, the more things I wrote down, and now here we are teaching people how to do this.
IS NEW JERSEY A TAX LIEN OR TAX DEED STATE? – INTEREST RATE
A question that’s asked on a regular basis is, “What is 18%? What does that mean?”
It means you raised your hand at the auction, and you bought a certificate, which is nothing more than a piece of paper. You don’t own a property. You just own a piece of paper.
However, you actually purchased the local government’s right of ownership in that property. Whether you know it or not, all properties in the United States are owned by the local government.
What you did is you bought a certificate that will pay you 18%, or in the case of New Jersey, it will pay you one and a half percent per month for every month.
When the people come in and pay their tax, they have to pay all of it. So you get back all your money plus 18% per annum.
18% is the top rate that you could earn in New Jersey, but you’ll get it at the rate of one and one half percent per month when the property owner pays.
IS NEW JERSEY A TAX LIEN OR TAX DEED STATE? – A POWERFUL INVESTMENT
This is a powerful rate of return, Bank of America is paying about 1% at this time. Maybe your local bank is paying even less than that.
With a New Jersey tax lien certificate, you’re going to get 18%. These are powerful earnings.
At 18%, you’ll double your money every four years. That’s a pretty good rate of return, don’t you agree?
IS NEW JERSEY A TAX LIEN OR TAX DEED STATE? – MISTAKES TO AVOID
Let’s talk about the big mistakes that newcomers make. Newcomers think they’re just going to go down to the auction and start buying. No, you don’t want to do that.
You need to do some learning. You have to put in a little time, get a little bit of education here, and that’s going to be relatively easy.
Here are the two mistakes that you need to know about.
Number one, don’t buy any tax lien certificate or any tax deed unless you’ve looked at the property. Ladies, you wouldn’t marry a guy if you’d never him. So, don’t buy a property without looking at it first.
It could be in a bad neighborhood, or it could have burned down. It could have a chicken farm next to it. The point is you want to look at it before you buy it.
The biggest mistake newcomers make, and old-timers, and you’ll see it every time you go to an auction, is people will buy at the auction, then they’ll turn to their spouse and say, “Let’s go look and see what we bought.”
Now, think about what that person just said. They have no idea what they bought. So, how did they know what their bidding strategy should have been?
We teach you bidding strategy. Buy it low, and make money fast. That’s what we teach.
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CONCLUSION
We hope you learned a lot from Ted’s lesson, “Is New Jersey a tax lien or tax deed state?”
New Jersey is a tax lien state, and New Jersey tax lien certificates pay a rate of 18% per annum. The auctions are a down bidding process. So the bidding starts at 18 and goes down.
When you purchase a tax lien certificate, you are paying someone else’s property taxes. You don’t get immediate ownership of the property, but do get a right in that property.
If the property owner pays the back taxes, you get all your money back plus the interest, If the property owner doesn’t pay, then you get the property, and you get it without a mortgage.
When you invest in a tax lien certificate, you pay the government, and you get checks back from the government , or you get the property.
In a nutshell, a tax lien certificate is an excellent passive investment that pays a high rate of interest, and it’s secured by real estate, making it a very safe investment as well.
If you’d like to know more, there’s no one more qualified than Ted Thomas, America’s leading authority on tax lien certificates and tax defaulted property investing, to teach you how to do this.
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 one-on-one coaching.
If you’d like to learn how to earn lucrative profits in real estate, you can get started now at no cost by taking advantage of Ted’s FREE Master Class. This life-changing mini course is about 1-hour of streaming video.
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