In this interview, Ted will reveal how to profit from tax lien certificates and the benefits of tax lien investment in an uncertain economy.
You may watch the video above, or if you prefer, read the transcript below.
In “Tax Lien Investment: A Safe Haven for Your Money” the topics we’ll be discussing are:
- Tax Lien Certificates Are a Safe Haven in an Uncertain Economy
- What Makes Tax Lien Certificates Safe?
- Tax Lien Certificates Pay High Yields
- Are There Any Tax Lien Investing Risks?
- Learn More About Tax Lien Investing
Want to learn how to invest in low-risk real estate and earn profits beyond your wildest dreams? Would you like to buy mortgage-free homes for pennies on the dollar? Or earn double-digit interest rates secured by real estate? Then you don’t want to miss this FREE Auction List offer.
Tax Lien Certificates Are a Safe Haven in an Uncertain Economy
With stocks falling and inflation rising, people are more concerned than ever about finding a safe haven for their money.
The stock market can be volatile and runs on emotions and rumors. Though it’s possible for knowledgeable investors to make money from stocks, the stock market offers no guarantees.
Meanwhile inflation is running amok like the silent thief that it is, making traditional low-risk investments, like bank CDs, a losing proposition. A lot of people are wondering what to invest in during inflation because the usual safe investments just don’t pay enough to keep inflation from draining away investors’ capital.
What you need to stay ahead in the current economy is a low-risk investment that’s also high yielding. Does such a thing exist? Absolutely.
What Makes Tax Lien Certificates Safe?
Tax lien investment is low-risk because both your capital and return are guaranteed by the government. Your money is protected by the state property tax code.
When you buy a tax lien certificate at a county auction, you’re purchasing the tax lien on the property, which the tax delinquent property owner must pay plus interest or lose the property.
Who gets the property if the tax lien is not paid? The investor who holds the tax lien certificate because tax certificates are secured by real estate.
You either get paid all your money back plus interest, or you get the property, and you get it mortgage-free.
Tax Lien Certificates Pay High Yields
What happens if the tax delinquent property owner pays the back taxes plus interest? The delinquent property owner gets to keep his or her property, and the back taxes plus interest goes to the tax lien certificate holder.
How much interest is that? It depends on the state or county where the tax lien was purchased and the bidding at the auction where the interest rate can be bid down.
For example, the state of Arizona pays up to 16%. Florida up to 18%. Iowa up to 24%, and Illinois pays as much as 36%. Compare that to a bank CD.
Your rate on your tax lien investment is locked-in, guaranteed, and you get paid by the local government once the tax delinquent property owner pays it off. If not, then you get the property, and the only thing you had to pay was the back taxes.
Are There Any Tax Lien Investing Risks?
Tax lien certificates are an excellent passive investment because 95% to 97% of the time they are paid.
What if you do end up with the property?
First, since there is a chance you could end up owning the real estate, you mitigate your risk by doing your due diligence on the property before bidding on it.
Second, sell it fast. By utilizing Ted’s strategy of buy low, sell low, and move on to the next property, you can quickly generate $20,000 to $25,000 in cash flow from one tax lien investment property.
You got it for a bargain, so sell it for a bargain fast to a flipper or fixer upper person. That’s just one way to profit from selling the property. Ted can show you even more ways to sell tax lien investment property quickly to generate both cash flow and residual income.
Learn More About Tax Lien Investing
If you want to learn more about tax lien investment, view more of Ted’s free videos.
Ted is the authority on the subject of tax lien and tax deed investing and has been teaching students how to buy and sell tax delinquent properties for over 25 years.
If you want to have a free auction list of tax defaulted properties that are currently for sale, go to TedThomas.com/freegift.
We hope you enjoyed, “Tax Lien Investment: A Safe Haven for Your Money”
Most investors believe they have to choose between low risk and high yields, but with tax lien investing, you can have both. You can keep ahead of inflation earning interest rates as high as 36% while knowing that your investment is government-backed and secured by real estate.
If you’d like to know more, Click here to get started today!
Read the Video Transcript:
Tax Lien Investing
Randy: Hey, thanks for joining us. I’m here with Ted Thomas who is the authority on tax lien investment and tax auctions and knows a little bit about this area. Hey, Ted, the stock market is falling. Inflation is rising, just taking off like a rocket, so in an environment like this, does a tax lien certificate make sense? That’s the question.
Ted: Well, first of all, a tax lien certificate would be a safe haven. Your money’s going to be safe. So the stock market you can’t control because it’s going to be up and down. It’s a constant up and down. The inflation, well, that’s really controllable. That’s just mismanagement with the government. That’s all that is. I won’t get into that, but if you turned on the oil, the gas price would go back down. Why are we buying oil from Saudi Arabia? It doesn’t make sense to me. Why make those guys rich? Why not make Americans rich?
Ted (cont’d): Anyway, if you want a safe haven investment, think about tax lien investment because the markets change. You can’t control anything. You’re controlled by the emotions of the market, and I’m not going to give you stock market talk in any bad way because I’m not negative on the stock market. If you have money and time to sit and wait it out, you’ll probably do well.
Ted (cont’d): But tax liens and deeds, what you’re basically doing with a tax lien certificate, is you’re buying a government debt. The government debt is anybody that owns a property owes money to the government. They owe money every year to the government. That’s called taxes, property tax. That money is owed to them. If the government doesn’t get their money, what are they going to do? How are they going to pay the school teachers, the fire department. How are they going to pay the county employees? How are they going to take care of the hospitals? They can’t do that. How are they going to fix the roads?
Ted (cont’d): So what the county does is, they have tax lien certificates. They sell them. You and I can buy those. So we are buying a government certificate that has a high interest rate on it. Some of them are 16%. Some are 18%; some are 24%, but they end up being bid on, so they can be bid down. However, it doesn’t matter because tax lien investment is a safe haven. You know you’re going to get paid.
Ted (cont’d): Worst case, you’re going to get your money back. That’s your worst case. If someone bids zero, you’d still get your money back. So tax lien investment is safe. The government’s got your money, and it’s protected by the property tax code in that state. So now you know you’ve got a safe haven. You don’t have a safe haven in the market. That’s going up and down.
Ted (cont’d): Now, if you buy tax defaulted property, a lot of people won’t do that because it requires W-O-R-K. People say, “Ted, I have to work? I thought I was going to be rich by Friday.” No you’re not going to be rich by Friday; you’re going to have to learn a little bit. You’re going to have to learn which ones to buy and which ones not to buy. You’ve got to have boots on the ground.
Ted (cont’d): Someone’s going to look at it, and they’re going to say, “Hey, it’s a pretty good looking property. You need some paint, and you’ve got to fix up the garage doors, blah blah blah.” So they’re slightly used and abused. You’re not going to do that. You’re going to buy it low, and then you’re going to put a mark up on it. So you can make $20,000 or $25,000.
Ted (cont’d): You’re going to sell it to a flipper or to a fixer-upper guy, one of those guys or gals that drives up in one of those trucks that has paint on the sides of it and tools hanging off it and all that. You’re going to sell it to them. You made a little profit so now you have created value. They’re going to go fix it up. You’re fine. You just had to go to the auction, make sure that you did it right, or you have someone else go look at it and you do it online.
Ted (cont’d): So you have a skill. Your skill is to create value. That’s what your skill is. You’re in a new business of creating value. You’re creating value by buying it from the government, which helps the government. You’re going to buy it at the right price, not too high of a price that you can sell it to a flipper or a fixer-upper person, or if you want, go fix them up yourself.
Ted (cont’d): If you want to do that, it takes about 3 to 6 months, and you need a ton of dough. If you don’t have a ton of dough, how are you going to fix it up? Well, that’s the killer. You might have to put a roof on it. You might have to fix the foundation. That’s what fixer-upper people do.
Ted (cont’d): We just buy them, create some value, re-sell them, and go do the next one. There are only going to be 5,000 tax auction this year. That’s all there’s going to be. There are only going to be 100 a week. How many do you want? There are so many tax auctions, you can’t attend them all in one state. It’s impossible. There’s so much abundance in this business.
Ted (cont’d): Tedtomas.com/freegift. Go there. Watch the videos. Watch the people. They’re doing it. They’re real people. Some of them are 60. Some of them are 18. Most of them are people that have white hair like I do or no hair. That’s what they’ve got. That’s what they do. They take their money, and they make sure its a safe haven. They want to make sure that they’ve got value. Real estate has value.
Ted (cont’d): I don’t know what the stock is, I don’t know. I didn’t badmouth the stock market, I said I don’t know, but I do know this market, and I’ve been involved in it for over 30 years. 30+ years, and I have watched people make a lot of money, if they will just follow the steps that we teach them. I created a system, and the system works. If you go to Tedthomas.com/freegift, you’ll see people that just followed my system, that’s all they did.
Ted (cont’d): I didn’t say everybody could do it because everybody can’t do it. You know why they can’t do it? Because they won’t get off their rusty dusty. If you won’t get off your rusty dusty, I can’t help you. I will guarantee you that I can’t make you rich by next Friday, but can I guarantee you that you will get a property? Absolutely, 5,000 auctions, every one of us can get a property. 5,000 auctions this year.
Ted (cont’d): In Los Angeles, this auction is 1700 properties. Some auctions only have 17 properties. I don’t know what they’re going to have, but they’re all online. We could teach you how to do it all online. You can sit in the comfort of your own home and buy property. I get people that have bought 15 properties that live in Utah, and all of their properties are in Michigan.
Ted (cont’d): What did I just say? He lived in Utah, and he bought 15 properties and sold them in Michigan. Now how are you going to do that? Well, I could teach you. I could teach you how to do it. I can teach you and show you people that have bought 60 properties in six years. 60 in six years, and they did them all with a credit card. They didn’t have any money in their pocket. They bought every one of them with a credit card. We can teach you to buy them with a credit card. Not every county does that, but certain counties do. So think about it.
Ted (cont’d): This is a business that’s wide open. Anybody can do it. Is it a competition? Well, of course it is. Who cares? Who cares? You make your own competition. Tedthomas.com/freegift. Everything you see is free. If you really want to come and learn how to do it, I do an all-day class once a month. It’s got the same intensity that you can see right now, for six hours. Ohh, what would you learn in six hours, you don’t even know. You don’t know what you don’t know, but if you go to that website, you’ll find out. There’s a lot that you don’t know, and it’s all free.
Randy: And something else that you get there free is one free auction list.
Ted: Yes, right, that’s right. See I get yacking, get on my rant, and I forget to tell you what I’m supposed to tell you.
Randy: Haha, but hey, that’s a chance to get started with this. Again, like Ted said, there’s a lot of other videos waiting there too where you can get a chance to know Ted and hear some more insight on some various aspects of getting involved in tax defaulted property and tax lien investment. So head there right now Tedthomas.com/freegift
Ted Thomas is America’s Leading Authority on Tax Lien Certificates and Tax Deed Auctions, as well as a publisher and author of more than 30 books. His guidebooks on Real Estate have sold in four corners of the world. He has been teaching people just like you for over 30 years how to buy houses in good neighborhoods for pennies on the dollar. He teaches how to create wealth with minimum risk and easy-to-learn methods.