There Are Millions of Tax Liens for Sale
Today’s discussion is about tax lien properties for sale. I think most of you will be amazed to discover the millions of tax lien certificates that are available nationwide, and I’ll reveal the details of how tax delinquent real estate becomes tax lien properties for sale.
For example, the state of Florida is absolutely exploding with growth due to the government’s pro-growth approach, no state income tax policy, and beaches and sunshine.
The 67 counties of Florida issue over 1 million tax lien certificates each year. Counties auction these tax lien certificates at local auctions, usually during May and June.
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Is Tax Lien Investing the Perfect Passive Investment?
I’m Ted Thomas, and I’ve been involved in this subset of traditional real estate called tax liens and tax-defaulted properties for over 30 years. Today, I’ll reveal some amazing information about tax lien properties for sale.
This information could be all new to you. If it is, I’ll give you a brief understanding of the process including the priorities.
I’ll give you the who, what, where, when, and the why of investing in tax lien properties for sale, which many people find passive and perfect for their portfolio.
Tax Liens Are the Solution to Delinquent Property Taxes
Across the United States we have over 3,000 counties. The county government’s revenue comes from property taxes. Unfortunately, many property owners fail to pay property taxes on time, and this causes a big problem for the county.
The state legislature has created solutions. The solution in all 50 states is if the property owner fails to pay property taxes, the treasurer will seize the property.
However, in half of the states in the USA, the counties will sell tax lien certificates rather than confiscate the property right away.
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Tax Lien States Issue Tax Lien Certificates
Tax lien states and counties will issue tax lien certificates. They don’t throw the people off the property. They’re very benevolent and allow the property owner to stay in place for as long as 1-3 years. However, the delinquent property owner has a lien against the property that must be paid to the local government.
Tax Lien Certificate Interest Rates
Purchasers of the tax lien certificates have rights to collect outrageous interest rates of 16%, 18%, 24%, and even up to 36%. These are passive investments.
Tax Lien Certificate Redemption Period
The government gives the defaulting property owner time to redeem, in other words, pay the taxes, and sometimes that time limit is one year, two years, or three years.
Tax Lien Certificate Redemption Rate
The rules of the tax lien certificates are different from state to state. However, one thing is common, 95%-98% of tax defaulted property owners will come forward and redeem the tax lien certificate.
Tax Lien Certificates Are a Win-Win Investment
They are now paying the county taxes which were delinquent and also paying a high-interest rate, which ends up being paid to the tax lien certificate holder. There are two winners, the property owner who doesn’t lose the property and the tax lien certificate investor who makes a profit.
Tax Lien Investing Risks
You’re probably saying to yourself, this sounds risky. So let me clear that thought process.
If the property owner does not pay you, the county government has issued a certificate which you own. The tax lien certificate will allow you to take the property if the property owner defaults and does not pay the delinquent back property taxes plus the outrageously high interest rate.
The local county sells a tax lien certificate and covenants, which means promises, a rate of return. If you don’t receive your rate of return, you will have the rights to take the property and own the property for whatever you paid.
The certificate holder by law may take legal action on their own or have an attorney give notice in the event of non-payment, then the investor who purchased the certificate will own the property free and clear of a mortgage or deed of trust loan.
Savvy Investors Purchase at Tax Lien Auctions
Tax lien auctions take place in half of the counties across the United States.
Savvy well-trained investors purchase tax liens and enjoy high-interest rates of returns, and if the property owner does not redeem they will end up with the property.
We hope you enjoyed Ted’s lesson, “Tax Lien Properties for Sale”
Tax liens are an excellent passive investment, and they’re secured by real estate. Tax lien certificates pay interest rates of up to 36%, and if you don’t get paid, you get the property mortgage-free.
If you’d like to know more about tax delinquent real estate investing, Ted Thomas provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops, web classes, and personal coaching with certified coaches.
You can learn how to reap the huge rewards from tax lien and tax defaulted property investing! Get started today by taking advantage of Ted’s Free Master Class! Act now, it costs you nothing and will give you a big head start!
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.