What is Tax Lien Investing by primusboy


									What is Tax Lien Investing?
What type of investing are you doing? Is it safe? Does it offer a
staggeringly high rate of return - guaranteed? No? Well, perhaps you
should consider Tax Lien Investing and start making your money work for
Tax Lien Investing 101
For those not familiar with tax liens, don't worry. It's not as scary as
it may sound. You know what property taxes are, so you're halfway there
The government expects homeowners to pay their property taxes every year,
in full and on time, like all other creditors do. For a variety of
reasons, sometimes people don't. When that happens, an investment
opportunity arises. As far as the government is concerned, a person's
home is their collateral if they fail to pay their tax bill. The smart
investor (you) pays that outstanding bill, which means that investor
(you) has purchased a first position lien on the property in question.
After that, there's a bit of a wait. The governing body involved will
notify the homeowner that they have a specified period of time in which
to pay up their arrears. It could be months or it may be a couple of
years. It's like a 'one last chance' before they lose their property.
Obviously, there's two ways this can go - they pay up or they don't.
What Each Option Means In Tax Lien Investing
1. If the person in default pays their tax bill within the specified
period of time, the government cuts you a cheque. The amount they give
you will be the original principal (your investment) plus interest and
penalties (your profit) that they've collected from the consumer on your
behalf. You don't even have to do anything except cash the cheque.
2. When the person in question does not pay the bill within the allotted
time period, you can then foreclose on that property. As you will have
the first position lien, you have first dibbs. Not even the bank holding
the mortgage can get in there ahead of you.
As you can see, Tax Lien Investing is a pretty sure of making some good
money. You win regardless of how the situation plays out.
A Caution
Not all states allow Tax Lien Investing. Some only allow for Tax Deed
Investing, and still others offer Hybrid Tax Investing. You need to know
which one is legal in the state you are looking to invest this way in.
Your best chance of success in any type of investing is to be as fully
informed as possible. Learn as much as you can about each type of
investment, including which states allow what.
If you can find a mentor, great. If not, or you prefer a faster and
easier way, spend some time searching around. Best of luck with your new
investments, and don't forget to pay your property taxes or someone will
be doing some Tax Lien Investing on your property!
Andrew Kestler offers a free report called "Fast Track Primer to Tax Lien
and Deed Investing Success" at http://www.TaxLienInvestingGuide.com - In
this free report, you'll discover how to start making great returns with
tax lien and deed investing in the fastest, safest, and easiest way
possible. Claim your copy now at http://www.TaxLienInvestingGuide.com

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