Invest in Tax Lien Certificates

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					       Read about the Tax Title Process in Massachusetts: here




                   Tax Lien Millionare
       Buy Properties for Pennies on the Dollar

                                             Visit: MassTaxDeeds.com




Massachusetts Bidders should be aware that they will not be bidding to purchase
marketable title to land. The successful bidder will acquire all of the Town/City's
rights in the subject Real Estate, specifically the right to institute proceedings
in the Land Court to foreclose the rights of the delinquent taxpayer. An Assignment
Auction is held under the provisions of Massachusetts General Laws Chapter 60, Section 52.


Presently, a 6 month Redemption Period or more must elapse.      The assignee is entitled
to collect only 6.5% interest, not the 16% owed to a municipality under G.L. Ch. 60 §62.
             Tax Lien Millionare
        Buy Properties for Pennies on the Dollar


                  Table of Contents


Introduction: Why Invest In Tax Liens?       Page 3


Chapter #1: What Are Tax Liens?              Page 7


Chapter #2: How To Buy Tax Lien              Page 14
Certificates


Chapter #3: Colorado – An Example Of         Page 36
A State That Sells Tax Lien Certificates


Chapter #4: Useful Tips On Buying Tax Lien   Page 49
Certificates At Tax Sales


Chapter #5: The Risks Involved In Tax Lien   Page 70
Investing


Chapter #6: List Of States That Sell Tax     Page 75
Lien Certificates


Chapter #7: States Where Tax Lien Investing Page 78
Is Most Profitable


Chapter #8: Contact Information For The      Page 83
Most Profitable Tax Lien States


Conclusion: Tax Lien Certificates Are An     Page 87
Excellent Investment
Introduction: Why Invest in Tax Liens?
Page 3 of 89


Introduction: Why Invest in Tax Liens?

Looking for a safe, easy, guaranteed investment
with high rates of interest, without the risk
of stock market investing? Stop putting up with
mediocre investment returns and stock market
risk. This comprehensive guide will show you
how to achieve the maximum financial gain in a
time of low interest rates and a weak stock
market.

Like millions of others, you probably worry
about where to put your money in these shaky
stock market times. Instead of investing in
stocks, many people choose to invest in their
money in “safe investments”, like certificates
of deposit or savings accounts. The problem is
money market funds, banks, and savings and
loans are paying less than 5% interest. Today,
you will have to search for a CD paying more
than 6%. After taxes and inflation, a 5% or 6%
return leaves you with nothing at all!

There is another option. Suppose you could
learn exactly how to get started buying
property tax liens and get a guaranteed return
on your investment by Uncle Sam himself,
without the high risk from investing in the
stock market or the low rate of interest on CDs
or money market accounts?

Buying property tax liens from the government
is one of the most powerful and safe
investments you can make, because you will get
a guaranteed rate of return on your investment
backed by the government itself! Simply put,
it’s probably the best kept secret in
investing.
Introduction: Why Invest in Tax Liens?
Page 4 of 89


Sound too good to be true? Well, it isn’t if
you have the right information on how to buy
tax liens in states where tax lien investing is
the most profitable.

In states like Michigan and Arizona, buying tax
liens is especially profitable because the
state pays an exceptionally high interest rate
to lien holders, and provides them with a high
level of security. In fact, 98 percent of tax
liens are eventually paid off. And if the
delinquent property owners don’t pay back their
tax liens, lien holders automatically get the
chance to foreclose on the property and get the
title to it after 1 to 3 years – for little
more than the money they paid for the tax lien!

Tax lien certificates aren’t some shady
investment that you buy from a broker at an
investment firm you’ve never heard of. You
purchase these property tax liens directly from
the state or county government (depending on
the state). The government isn’t going to close
up shop or leave town. This type of investment
was created by state law, and state law
protects you as the investor.

Simply put, buying property tax liens is
probably the best kept secret in investing,
it’s safe, and it’s not difficult to do.

Investing in Tax Liens Is Easy…Learning How To
Actually Get Started Is The Hard Part

It could take you hours and hours of research
and could cost you a small fortune in phone
bills, attorney fees and travel time to figure
out the exact details on how to get started
Introduction: Why Invest in Tax Liens?
Page 5 of 89


investing in property tax liens, especially
since the information is different for every
state county.

But instead of knocking yourself out trying to
figure out how to invest in tax liens, spend an
hour reading this informational report and you
will learn what tax liens are, the information
you need to get started investing in them, and
the tools you need to implement a successful
investment strategy.

In this report, you will also get a list of the
27 states in the continental U.S. that sell tax
lien certificates, and you will discover which
of these states is most profitable for tax lien
investing.

And, remember, you do not have to live in a
particular state to buy their tax liens for
sale. Even if you live as far away as New York
or Texas, you can still invest in tax liens in
Florida, Arizona, Illinois, Michigan, or any of
the other states profiled in this report. It’s
also an easy thing to do from another state.
Much easier, in fact, than trying to keep track
of your stock market investments.

Think you need to be rich to invest in tax
liens? Think again. One of the great things
about tax lien investing is that tax liens come
in a range of prices from $100 and up, and,
since you can buy just what you need, there is
sure to be a tax lien to suit your budget.

Learn everything you need to know about tax
liens in this concise, easy-to-understand
report and get started now on your path to
Introduction: Why Invest in Tax Liens?
Page 6 of 89


safe, high-interest, low-risk investment
returns guaranteed by the government.
Section #1: What Are Tax Liens?
Page 7 of 89


Section #1: What Are Tax Liens?

By definition, a lien is a legal term
pertaining to the right to gain possession of
someone else’s property until the owner of the
property fulfills a legal duty to the person
holding the lien, such as payment of property
taxes.

With property tax liens, local governments have
the right to lay claim to people’s property
when they do not pay their property taxes.

Why don’t property owners pay their property
taxes?

The most common reason why an owner doesn’t pay
is because they do not have enough money for
the taxes, or the owner is just putting off
paying them. Whether they’ve recently lost
their job or are simply strapped for cash, some
people fail to pay their property taxes, just
as they might fail to pay their electric or gas
bill.

The problem is local governments depend on the
revenue generated by property taxes to provide
services and run their day-to-day operations,
like repairing roads, funding schools, and
paying for law enforcement. Property taxes can
make up to 50% of a county’s revenue. If
property taxes do not arrive on time, many
county governments find it difficult to budget
or even function without this income.

In order to make up for the shortfall,
governments have to raise the missing money
somehow – even if it means raising the property
Section #1: What Are Tax Liens?
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taxes of citizens in the community who pay
their property taxes on time. Of course,
elected county officials don’t want to raise
taxes on their constituents because they know
it will come back to hurt them when they run
for re-election.

Another option is that counties can, and do,
charge high penalties to delinquent property
owners for failure to pay, and they have the
power to foreclose on the property. The
problem with this solution is that while the
government pursues the delinquent taxpayer, it
is without its money.

The other alternative is to place a lien on the
owner’s property. Just as a utility company can
shut off you’re your lights or gas if you don’t
pay your bill, local governments have the right
to take similarly drastic measures against
delinquent taxpayers.


Here’s how tax liens work:

A county government places a lien on a piece of
commercial or residential property or vacant
land when the owner of the property does not
pay their property taxes. This means that the
tax obligation is officially registered in the
county tax records. Until the taxes are paid
off, the lien, remains in effect, which means
that nobody can buy the property without paying
off the lien. The amount of the lien equals the
amount of the unpaid taxes, plus penalties and
interest.
Section #1: What Are Tax Liens?
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If the property taxes remain unpaid for a long
enough period of time, the county can foreclose
on the property and take possession of it. In
the meantime, the county charges an interest
penalty on the amount of the unpaid taxes
ranging anywhere from 8% to 50% per year!

Tax Lien Certificates

A lien is a very effective legal tool designed
to force debtors to pay their bills.

The catch is counties don’t want liens - they
want cash so that they can keep the government
running. With liens, counties must still foot
the bill until the owner pays his/her taxes and
most cannot afford to do this. Small, county
governments are not in the lending business and
they do not have money to loan.

Instead of holding the lien until the property
owner finally pays their taxes, many states
allow their county governments to sell off
these liens at county-sponsored tax sale
auctions in the form of tax lien certificates.

Tax lien certificates work like this: To get
their money quickly, counties sell their liens
to nearly any private citizen in any city or
state who wants to buy them, and then issue
certificates for the liens. States that offer
tax lien certificates generally hold a tax sale
auction at least once a year where buyers bid
to purchase these tax lien certificates.

The purchase price of the individual tax liens
sold by local governments varies, but you can
expect to pay exactly the amount of the
Section #1: What Are Tax Liens?
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delinquent taxes, plus the interest and
penalties already owed to the county by the
property owner.

Once you buy the lien, you have the same rights
to the property as the government. You not only
get to collect the principal amount of the
lien, but the hefty interest that continues to
add up until the lien is paid off in full.

In addition, like the government, lien holders
automatically get the chance to foreclose on
the property and get the title to it after a
certain period of time – for little more than
the money they paid for the tax lien.

Individuals have been buying up property tax
liens more and more because of the great
benefits.

When you purchase a tax lien, you get:

     • The amount of the unpaid taxes owed by
       the property owner.

     • All outstanding interest accrued from
       the time of the sale.

     • Additional fees charged by the county,
       like filing, advertising, and other
       administrative fees.

     • Title to the property (after a certain
       amount of time set by the state
       jurisdiction) if the delinquent taxpayer
       fails to pay up.
Section #1: What Are Tax Liens?
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Why Tax Lien Certificates Are a Safe Investment

Don’t worry, tax lien certificates are not
another invented, get-rich-quick scam. They are
part of a government-sponsored program that
serves to protect the financial interests of
county governments as well as your interests.
They not only offer you a high-rate return on
your investment, they also provide a great
opportunity to obtain real estate at incredibly
low prices. In fact, your rights are set into
law by state legislation.

As mentioned previously, as the purchaser of a
tax lien certificate, you automatically receive
the same rights of the government over the
property, including:

     • The right to collect the lawful interest
       on the unpaid taxes. The delinquent
       property owner has to pay you the
       interest set by the government from the
       day of sale.

     • The right to foreclose on the property
       and take possession of it.

     • The right to live in the property once
       you take possession of it. If you choose
       not to live in it, you can lease it out
       to tenants or sell it.

You know the old saying, “The     only certainties
in life are death and taxes”.     Have you ever
heard of the IRS forgiving or     forgetting about
a tax debt? It never happens.     The IRS levies
Section #1: What Are Tax Liens?
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heavy penalties and interest on people who do
not pay their taxes, and can seize the
taxpayer’s assets to pay the debt once enough
time has passed. The same holds true with tax
liens.

Without question, people must pay taxes on
property they own to their local governments.
If they do not pay when these taxes are due,
they will be charged penalties plus interest on
the unpaid taxes. If delinquent taxpayers fail
to pay their property taxes after a certain
amount of time, they will lose their property
to the government or to you, if you hold the
tax lien certificate to the land.

An important point to remember is that as the
holder of the tax lien certificate, you will
not be responsible for pursuing the delinquent
taxpayer to get him to pay you back his debt to
you. That is what the lien is for. Think of it
as insurance that protects you against the loss
of your money.

Once you purchase a tax lien certificate, you
can feel confident that you will not only get
the money that you paid for the tax lien back
in full, but you will also earn a high interest
rate of interest on your investment. Not to
mention you might even get to obtain property
at unheard-of bargain prices!

If you invested $3,000 in the stock market, you
cannot be sure you will earn a high rate of
return over, say, 10%, or, for that matter, any
return at all. You could actually lose your
hard-earned investment in the stock market!
Section #1: What Are Tax Liens?
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Most people participate in tax lien sales
because the interest rates are much better than
those offered in savings accounts, mutual
funds, Certificates of Deposits, etc. Also,
unlike the stock market, you can be sure you
will make money by investing in property tax
liens because they are guaranteed by the
government.
Section #2: How To Buy Tax Lien Certificates
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Section #2: How To Buy Tax Lien Certificates

Now that   you know what tax liens are, you are
ready to   learn how to buy them, the information
you need   to get started, and the expert tips
you need   to know to be successful.

The following is an outline of the steps
involved in buying tax lien certificates. Keep
in mind that this is only a general overview of
the process - each state will differ in their
exact procedures.

1. Tax Notices Sent to Property Owners

    During different times of the year, state
    counties send out tax notices to property
    owners. If property owners do not pay their
    taxes by a certain due date, state counties
    then send letters to these property owners
    alerting them that their taxes are
    delinquent.

2. County Files Lien on Property

    If the delinquent property owners do not
    respond to the county’s notice and pay
    their taxes, the next step is for the
    county to lien the person’s property.
    Typically, counties send another letter to
    the delinquent property owners to notify
    them that a lien has been filed on their
    property, and to tell them that this
    property tax lien will be sold at a tax
    sale (or a tax lien auction as they are
    also referred to).
Section #2: How To Buy Tax Lien Certificates
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3. Advertisement of the Sale

    States that offer tax lien certificates
    generally hold a tax auction (where the tax
    lien certificates are sold) at least once a
    year. Each state holds their auctions at
    different times of the year. Sometimes,
    individual counties within a state will
    hold their tax auctions in the same month
    of the year, but on a different date.

    Nevertheless, the laws of each state
    require that the date and time of the
    auction be advertised in local newspapers
    before the day of the sale.

    For example, in Colorado, a list of tax
    liens available for purchase is advertised
    in three to four weekly issues of local
    Colorado newspapers, like the Daily
    Sentinel in Mesa County, or the Pueblo
    Chieftain in Pueblo County.

    Besides the date and time of the sale, each
    state’s law also requires the list of
    properties be published in the local
    newspaper prior to the day of the sale.
    This list generally includes some sort of
    description of the property, their
    locations, and the amount of the taxes
    owed.

    Although tax auctions are publicly
    advertised in local newspapers, you
    probably don’t want to go to the trouble of
    subscribing to these publications or
    figuring out when to buy them at a
Section #2: How To Buy Tax Lien Certificates
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    newsstand. There is another option: call
    the county treasurer’s office.

    Tax lien certificates are usually handled
    by the county treasurer’s office, which is
    the governing body that oversees tax
    collection and tax liens. As soon as you
    have determined the state and the county
    you want to buy in, you should contact the
    local county treasurer to find out the
    date, time, and place of the next auction.

    Most county treasurers will also mail you a
    copy of the list of properties being sold
    at the auction for free (or for a nominal
    fee). If you live nearby, you can usually
    pick up a copy from the county treasurer’s
    office as soon as it is published. Some
    counties even post their tax sale list on
    their website.

    Getting a copy of the list of tax liens for
    sale is very important, which will be
    discussed on page 57 of this report under
    “Research the properties”.

    Picking up the phone and calling a county
    treasurer’s office is easy but how do you
    find out what number to call? Simply go to
    page 83 in Section #8 of this report,
    “Contact Information For The Most
    Profitable Tax Lien States”, which lists
    phone numbers to help you get started. You
    can also call directory information to get
    the numbers you need.

    TaxLienSaleCertificate.com also offers
    County Phone Lists, which give you the
Section #2: How To Buy Tax Lien Certificates
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    name, phone number, and address of every
    single county in states where tax lien
    investing is most profitable.
  4. The Day of the Tax Auction

    States generally have very explicit
    procedures for their tax auctions. For this
    reason, it is very important that you check
    with the county where you want to purchase
    a property tax lien to find out what their
    particular requirements are.

    Tax Sale Proceedings

    Here is a general summary of tax sale
    proceedings:

     • For the most part, each and every county
       in the states that sell tax lien
       certificates hold auctions. Furthermore,
       these states do not hold one just one
       yearly state auction where they sell all
       their county tax liens. With the huge
       number of tax liens available for
       purchase in these states, this process
       would take far too long and too many
       days to complete. That is why individual
       counties in each state sponsor their own
       tax sales.

     • You do not have to be a resident of a
       particular state in order to participate
       in their county tax auctions. States
       that sell tax lien certificates allow
       any private citizen like yourself living
Section #2: How To Buy Tax Lien Certificates
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        in any city or state outside of their
        jurisdiction to participate.

     • All states require that you must be
       physically present at the county tax
       sale to bid. Some states even allow you
       to send a representative to bid for you.
       If you plan to bid in a state where you
       (not your representative) must be
       present during the tax sale, make sure
       the state is in close proximity to where
       you live, or else it is a state you
       would like to visit.

     • Each county tax sale takes place in a
       county building, like the County
       Courthouse or the County Treasurer’s
       Office. Again, you must check with
       individual counties to find out where
       they hold their tax sales.

     • Keep in mind that when you purchase a
       tax lien certificate, you are purchasing
       the tax lien on the property only - you
       are not purchasing the property. A tax
       lien certificate does not give you right
       to ownership, use or access to the
       property.

     • Registration
       Registration procedures vary among
       states so be sure to find out this
       information for the state in which you
       plan to purchase tax lien certificates.

        ► In some state counties, registration
        begins an hour or two before the sale
        starts. Some counties allow (and
Section #2: How To Buy Tax Lien Certificates
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        strongly encourage)      pre-registration
        prior to the actual      sale date. They also
        permit registration      by mail. It’s always
        best to arrive at a      tax sale as early as
        possible to get the      best seat in the
        house.

        ► During registration, you will have to
        fill out a registration form, as well as
        other forms such as an IRS W-9.

        ► Some states require that you make a
        deposit on the day of the sale in the
        form of cash or a certified check.
        For example, in Colorado, you must
        deposit the amount you wish to invest.
        If you have not spent the entire amount
        you deposited during registration, you
        will receive a check from the county the
        week following the tax lien sale.

        Other state counties require a fixed
        deposit, like in Miami, Florida, where
        you must pay a $1,000 deposit which you
        will get back in a month if you buy no
        certificates. Some counties will also
        allow you to estimate the amount you
        will buy and deposit 10% of that.

     • Bidding
       Why do buyers have to bid on tax lien
       certificates in order to buy them? Like
       any auction, buyers are competing to
       purchase tax lien certificates, which
       are the items for sale.

        To buy a tax lien certificate, you can
        expect to pay exactly the amount of the
Section #2: How To Buy Tax Lien Certificates
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        delinquent taxes, plus the interest and
        penalties already owed to the county by
        the property owner.

        So, in most states, what you are bidding
        for is the amount of interest you are
        going to require the property owner to
        pay you. However, that doesn’t mean you
        can set a random price for a tax lien
        certificate.

        For example, the bidding price of a tax
        lien certificate starts at the exact
        amount of the delinquent taxes, plus the
        penalties and interest already owed to
        the county by the property owner. What
        you are bidding for is the amount of
        interest you are going to require the
        property owner to pay you.

        Types of Bidding
        Most states generally award a winning
        bid to the person willing to accept the
        least rate of interest as is the case in
        Florida, which is one of the states
        where buying tax lien certificates is
        very profitable.

        In fact, in Florida, all tax lien
        certificates not sold at the auction can
        be bought from the county, and will draw
        a full 18% without bidding! If you don’t
        want to compete with other bidders on
        the amount of interest you will accept
        on a Florida tax lien certificate, you
        can just wait to buy a “leftover lien”
        to collect the entire 18% interest. (For
        more information on leftover liens, go
Section #2: How To Buy Tax Lien Certificates
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        to page 66 of this report in Section #4:
        “Useful Tips On Buying Tax Lien
        Certificates At Tax Sales”).

        Not all states let buyers bid on the
        least rate of interest on a tax lien
        certificate. For example, in Colorado,
        you have the winning bid if you are
        willing to hand over the most cash to
        the state. That is, the tax lien
        certificate goes to the person who pays
        the unpaid taxes, interest, and
        penalties owed, plus the largest amount
        of cash, which is called a premium bid.

        In Michigan, buyers bid on the
        percentage of ownership in the property
        for which the tax lien certificate is
        held. So, if you successfully bid 80%
        ownership on a property for which you
        hold a tax lien certificate, in the
        event the property forecloses and you
        get the property, you will have to share
        ownership with the delinquent owner, who
        holds the other 20%. This may not sound
        like an ideal arrangement but keep in
        mind that Michigan yields a high rate of
        interest on their tax lien certificates.

     • Purchasing the Tax Lien Certificate

        Once you’ve placed the successful bid on
        the tax lien certificate, you will then
        need to pay for it. States are very
        specific about when you owe the money
        and how you must pay it.
Section #2: How To Buy Tax Lien Certificates
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        For example, in Florida, a nonrefundable
        5% to 10% of the final bid price is
        required at the time of the sale. The
        balance of the bid price must be paid
        within 48 hours. If payment is not
        received within 24 hours, you will lose
        your deposit.

        Other states require payment by the next
        day, or before the conclusion of the
        sale. If you fail to pay, the tax lien
        is auctioned off again.

6. Redemption of Tax Lien Certificates

    Once you buy a tax lien certificate, the
    next step is to wait for the lien to be
    paid back to you by the delinquent property
    owner. Simply stated, to redeem a tax lien
    certificate (or the redemption of a tax
    lien certificate) means to pay it off.

    The delinquent property redeems the tax
    lien by paying you back all of the money
    that you paid to purchase the tax lien
    certificate, including:

     • The amount of the delinquent taxes, plus
       the interest and penalties already owed
       to the county by the property owner.

     • Any additional fees charged by the
       county, like filing or other
       administrative fees.

     • All outstanding interest accrued from
       the time of the sale.
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    In most states, when the tax lien
    certificate is redeemed, you will get paid
    back 100% of what you paid for the tax lien
    certificate, in addition to the outstanding
    interest that has accumulated from the date
    you bought the certificate at auction.

    How long does it take a delinquent property
    owner to redeem the tax lien?

    Redemption of a tax lien certificate can
    take anywhere from 1 month to 30 months or
    longer. But don’t think that means that a
    property owner has an unlimited time to
    redeem a tax lien, because that is clearly
    not the case. Redemption periods range
    state to state. For instance, in Colorado,
    a property owner has 3 years to redeem,
    while in Florida, it’s two years.

    What happens after the redemption period
    has ended? The next step is for the holder
    of the tax lien certificate to apply for a
    deed, which gives the holder of the tax
    lien certificate right to take possession
    of the property if the owner fails to pay.
    Deeds are covered in more detail on page 32
    under, “What You Can Expect In Court”.

    In regard to the redemption process, if
    you’re interested in getting paid for your
    tax lien certificate, don’t worry, one of
    the best features of tax lien certificates
    is you don’t have to do a thing to get your
    money back. You do not, for instance, have
    to pursue the delinquent property by
    calling his home like a debt collector
    would. All of the work of processing the a
Section #2: How To Buy Tax Lien Certificates
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    redemption is done for you by the local
    treasurer for free.

    How Tax Lien Redemptions Work:

    If the property owner decides to pay off
    the lien, he does not contact you. Rather,
    he goes to the treasurer’s office and pays
    the delinquent taxes, as well as the
    penalties and interest.

    After the property owner redeems the lien,
    the treasurer sends out a letter notifying
    you that the lien has been redeemed, and
    that you should send in the certificate.
    After the treasurer receives the
    certificate from you, he mails you a check,
    which includes the amount of the tax you
    purchased plus the interest that has
    accrued from the day of the sale to the
    date of redemption. In counties where the
    treasurer keeps the original certificate on
    file, he just mails you the check.

    The total amount of the check you receive
    is determined by the length of time you’ve
    held the tax lien and how much interest
    (and penalties) the delinquent taxpayer is
    being charged.

    For example, to give you a rough idea of
    how much money you can make, let’s say your
    tax lien certificate is worth $1,000 at an
    interest rate of 15% per year and the
    property owner redeems or pays back the
    lien in 18 months.

    Here is the calculation:
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    18 months x 1.25% (divide 15% by 12 months,
    this is the monthly amount of interest you
    earn) = 22.5%

    You would earn 22.5% interest on your
    $1,000 investment or $225. Compare that to
    the 6% or $60 you would make by investing
    $1,000 in a Certificate of Deposit!

    Or consider this scenario: Your $1,000 tax
    certificate earns 15% interest per year and
    the payback time is 30 months. The property
    owner will owe you 1.25% per month for 30
    months or 37.5% interest. So, if the amount
    you paid for your bid is $1,000, you will
    earn $375!

    If your tax certificate lien certificate is
    worth more, let’s say, $2000, and your
    interest rate is higher at 18%, you will
    earn even more money.

    Here is the calculation for $2,000 tax lien
    certificate held for 30 months at an 18%
    interest rate:

    30 months x 1.5% (divide 18% by 12 months,
    this is the monthly amount of interest you
    earn) = 45%

    You would earn 45% interest on your $2,000
    investment or $900.

    You may think 2 and a half years (30
    months) is a long time to wait to earn
    money on your investment, but it would take
    you much longer to earn this kind of
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    interest in a money market account or
    Certificate of Deposit.

    It is important to note that it is not
    unusual for a delinquent property owner to
    wait two years or longer before redeeming
    the lien. This is to your advantage because
    the longer he waits to redeem the lien, the
    more money you get in interest.

    Tax Lien Redemptions: Change Your Address
    With The Treasurer’s Office If You Move

    Nevertheless, if you move during this time,
    be sure to notify all the treasurers in
    counties where you hold tax lien
    certificates of your new address.

    To make this easy to remember, always keep
    a list of your tax lien certificates,
    including parcel numbers, certificate
    numbers, and the names and addresses of the
    county treasurers. When you change your
    address, call and write a letter to the
    different treasurers to notify them of your
    address change. That way, the treasurers
    will know where to mail you a check when
    your tax lien certificate is redeemed.

    Getting the check from a county treasurer’s
    office is one of the financial rewards you
    will reap by investing in tax lien
    certificates. This check will be much
    larger than the money you paid for the tax
    lien certificate. And, unlike the highs and
    lows of stock market investing, the money
    you make off your tax lien certificate is
    not the result of chance, but a guaranteed
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    investment that you can do over and over
    again with the same high return.

    Endorsing Subsequent Years Taxes

    Some states allow tax lien certificate
    holders to endorse subsequent years taxes
    (called sub-taxing).

    What Is Sub-Taxing?

    Each year following the purchase of your
    original certificate, if the same property
    owner has not paid their current year taxes
    in the timely manner required by law you
    have the first option of adding that next
    year’s delinquent taxes to your original
    tax sale certificate (referred to as
    endorsement).

    You can endorse the taxes on to the
    certificates you already hold without
    having to go through the trouble of
    attending another tax lien sale. The
    subsequent tax year payment will earn the
    same rate of interest as the original
    certificate and will accrue from the date
    of payment.

    Endorsements are processed at different
    times of the year by county treasurers. You
    will be notified by mail before this time
    if you are eligible for endorsements on
    your tax lien certificate(s).
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7. Foreclosure

    What happens if the delinquent property
    owner does not redeem (or pay back) the tax
    lien certificate within the redemption
    period?

    If delinquent taxpayers fail to pay their
    property taxes after a certain amount of
    time, they will lose their property to the
    government or to you, if you hold the tax
    lien certificate to the land.

    As mentioned previously, the redemption
    period, or the amount of time a delinquent
    taxpayer has to pay the tax lien
    certificate before his property is
    foreclosed on, is different in each state,
    but the range of time is typically 1 to 3
    years, as mandated by state law.

    Once the redemption period has passed
    after, let’s say, 3 years, the next step is
    foreclosing on the tax lien, which means
    the holder of the tax lien certificate
    takes possession of the property.

    Foreclosing on a property means you are
    exercising your right to acquire the
    property that you are entitled to. These
    rights include the right of ownership free
    and clear and the right to live in or lease
    the property.

    Foreclosing on a tax lien does not happen
    often, but it does happen, and it is one of
    the extraordinary bonuses of buying tax
    lien certificates. No other legitimate,
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    safe investment strategy allows you the
    opportunity to get valuable real estate at
    rock bottom prices. Can you imagine paying
    $10,000 in tax lien certificates and
    getting a $200,000 property in return? This
    is not a common occurrence, but if you are
    one of the wise investors who faithfully
    purchase tax liens, you could be one of the
    lucky ones.

    Foreclosure Procedures
    Although a tax lien foreclosure is a
    lucrative deal, it is not a simple process.
    First, every state has its own particular
    requirements and procedures on tax lien
    foreclosure. Second, the laws in every
    state are very strict about procedures. Any
    failure to follow the required process may
    stop you from getting a deed to the
    property, or may make any deed you do get
    void. This is the time to be precise.

    Because you need to be careful when
    foreclosing on a tax lien, it is definitely
    time to get a lawyer. There is a lot at
    stake here and the costs of a lawyer are
    easily justified. If you get the property,
    you’ll be getting it for pennies on the
    dollar. And if the delinquent property
    owner finally pays up during the process,
    which he is entitled to do under law, he
    will typically have to pay your attorney’s
    fees.

    Besides, in some states you will be
    required to court where you will have to
    file legal documents and present evidence.
    These are not easy jobs to accomplish if
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    you are not a lawyer and a judge is
    unlikely to cut you any slack. And keep in
    mind any mistakes may result in your case
    being thrown out. Spend the money on a
    lawyer.

    Although the basic procedures for
    foreclosing are different from state to
    state, here are a list of general facts and
    practices that are common in tax lien
    foreclosure:

     • The Notification of Foreclose
       All states require that before you
       foreclose on property, you must give
       notice to those interested in the
       property. This is not a state law – it
       is considered “due process” under the
       United States Federal Constitution.
       This means that:

        ► You will need to notify the owners of
        the property as recorded on the current
        tax roll. The treasurer of the county in
        which the property is located should
        have the current tax roll for you.

        ► You may need to notify the people
        actually living on the property, like
        tenants. And you may have to notify any
        heirs of the property owners.

        ► You may need to notify any and all
        lien holders. This would include other
        holders of tax lien certificates on the
        property. Keep in mind that you will
        have to pay off other tax liens before
        foreclosing.
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        ► You may need to notify the mortgage
        holders of the property. Keep in mind
        that once the mortgage company receives
        your notice, they may pay off your tax
        lien to avoid foreclosure. This is
        because if the property is foreclosed on
        and you get the title to it, the
        mortgage company loses their money.

     • A notification of foreclosure describes
       the location of the property, its legal
       description, the property’s tax parcel
       identification number, and the
       certificate of purchase number. The
       notice must also state when the
       foreclosure proceedings are to be held.

        ► The notice of foreclosure most often
        has to be personally delivered via a
        process server to the property owner. It
        may also be sent via certified or
        registered mail.

        ► The notice of foreclosure sometimes
        has to be published in a specified
        newspaper. It may also have to be posted
        on the property and/or public places, or
        even at the local county court house.

     • Going to Court
       Some states require you to go to court
       to foreclose on a tax lien and others do
       not. In general, it is best to go to
       court in order to get a court judgment
       that says the property is yours.

        It   also wise to bring what’s called a
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        “Quiet Title” action, which is a
        proceeding in court asking that you be
        declared the true owner of the property.
        This will protect you if the previous
        owner ever tries to appeal.

     • What You Can Expect In Court
       During the court proceedings on the
       foreclosure, the judge will determine if
       you followed the state’s foreclosure
       laws in a proper and timely fashion.
       That is why you want an attorney to
       represent you in court. If everything
       has been done correctly, in some states
       the judge will order the county’s
       treasurer or some other official to
       issue you a deed to the property.

        Once the court proceedings are finished
        and you are successful, you become the
        proud new owner of a piece of property
        that is worth much more than what you
        paid for it.

        In the world of tax lien investing,
        gaining property through foreclosure is
        comparable to winning the lottery
        because you own a property that is worth
        10 to 50 times more than your initial
        investment in the tax lien certificate.
        Imagine acquiring a piece of real estate
        that is worth $50,000 and you only had
        to pay a fraction of that value to get
        it.

     • What To Do With Foreclosed Property
       Now that you own this valuable piece of
       property what do you do with it? You can
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        either rent it out to tenants or sell
        it.

        If you decide to lease the property to
        tenants, you will have a steady flow of
        income for as long as you own the
        property. However, you will have to deal
        with such things as: making repairs to
        the property and finding tenants to live
        in it; you will have to pay property
        taxes and insurance premiums; you will
        have to pay income tax on the rent you
        receive; and, you will have to deal with
        tenants who don’t pay their rent.

        By selling the property immediately, all
        of the money from the proceeds of the
        sale go directly to you. So, if you sell
        the property for, say, $20,000, all of
        that money flows into your bank account.

        That’s not to say that Uncle Sam won’t
        take his cut also. You see, you will
        have to pay tax on your gain when you
        sell the property. The gain is the
        difference between what you sell the
        property for and the cost of the tax
        lien. Because your gain will be
        considerable, so will you tax burden. If
        you decide to sell your property, keep
        in mind you will have to pay taxes of
        30% or more on the cash you make on the
        sale.

        Selling a property which you gain
        through foreclosure of a tax lien is
        similar to selling property that you get
        any other way, but these are some issues
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        you will need to consider:

        ► Get liability and fire insurance on
        the new property. Now that you are the
        owner of this property, you will need to
        protect your investment, especially
        since you don’t really know what
        condition it’s in.

        ► As mentioned previously, it is smart
        to bring what’s called a “Quiet Title”
        action, which is a proceeding in court
        asking that you be declared the true
        owner of the property. This court
        judgment will help protect you against
        any later legal challenges to your title
        by, for example, by the former owner.
        The person buying your property will
        also want to see that you’ve
        accomplished this procedure (and the
        title company). That way, the buyer will
        feel assured he/she will not face a
        potential lawsuit by the former owner.

        ► Do not price your property too high
        when you sell it. The lower you set the
        price, the faster it will sell. After
        all, you already own a lot of equity in
        your property so don’t be too greedy.

        ► Finally, pay the property taxes you
        owe on your new property, even if you
        decide to sell it. Just because you
        acquired your property through tax lien
        foreclosure doesn’t mean it can’t happen
        to you – it can, so pay your taxes.

        Although the tax lien foreclosure
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        process sounds complicated, it really
        isn’t as long as you find out the
        specific laws and procedures of
        foreclosure in the state where you hold
        the tax lien certificate. Getting the
        right information is imperative.
        Otherwise, if you do not follow the
        rules, the property owner could appeal
        the court decision. This means that you
        might lose the property. Again, you
        would be wise to hire legal
        representation.
Section #3: Colorado – An Example Of A State That
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Section #3: Colorado - An Example Of A State
That Sells Tax Lien Certificates

In the previous section, Section #2, “How To
Buy Tax Lien Certificates”, you learned the
general rules and procedures of states that
sell tax lien certificates, including how to
buy property tax liens, the information you
need to get started, and the tools you need to
be successful in your tax lien investment
strategy.

In this section of the report, the focus is on
the specific tax lien procedures of Colorado,
which is a state that not only sells property
tax liens, but also one where tax lien
investing is particularly profitable. This
section is intended to zero in on a state that
sells tax liens and show you how they do it and
what their specific requirements are.

Here is a breakdown of the various Colorado tax
lien sale procedures. Individual Colorado
counties may differ in their exact procedures
but this list presents a summary:

1.   Colorado: Before the Tax Sale Takes Place

     • The list of tax liens for sale are
       advertised three to four weekly issues
       of local Colorado newspapers in October.

     • The list advertises the properties for
       sale, their locations, a brief
       description, and the amount of taxes
       owed. This list is also posted in the
       treasurer’s office of your county. You
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        can usually pick up a copy as soon as it
        is published. Some counties even post
        their tax list on their website. Tax
        lists are also always available on the
        day of the sale.

        If you live out of town, many county
        treasurer offices will mail the list to
        you for a few dollars, as well as a copy
        of their tax sale procedures.

2.   Colorado: Tax Sale Procedures

     • The date of each county tax sale is
       different for each county, although all
       take place between October to mid-
       December of any given year. Check with
       individual counties to find out when
       they hold their tax sales.

     • Each county tax sale takes place in a
       county building, like the County
       Courthouse or the County Treasurer’s
       Office. Check with individual counties
       to find out where they hold their tax
       sales.

     • If you plan on paying by personal check,
       you must go to the county treasurer’s
       office where the sale is taking place
       and provide a letter of credit from the
       bank on which the check is drawn, which
       guarantees that the check is good up to
       a certain amount. You must do this prior
       to the sale day. If this procedure seems
       like a hassle, plan on bringing a lot of
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        cash, depending on how much you want to
        spend, or a certified check.

     • Registration
       ► In some counties, registration usually
       begins an hour or two before the sale
       starts, which takes place early to mid-
       morning on a weekday, usually on Monday.
       However, some counties allow, and
       strongly encourage, pre-registration
       prior to the actual sale date. They also
       allow registration by mail. Check each
       county for information regarding
       registration.

        ► No change in the registrant’s name can
        be made so don’t have a friend who is
        also participating in the sale sign in
        early for you.

        ► At registration, each bidder (or
        buyer) is required to complete a buyer
        registration form, as well as an IRS
        Form W-9 with their name, address, and
        social security number or federal tax
        identification number. After the forms
        have been completed, you will be
        assigned your own bidder number and
        given a bidder’s card.

     • Deposits
       ► Some counties also require a proof of
       deposit at registration in the form of
       cash, certified check, or personal check
       (which, as mentioned above, must be
       guaranteed by your banks irrevocable
       letter of credit).
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        ► You must have the funds on deposit in
        the amount you wish to invest. If you
        have not spent the entire amount you
        deposited during registration, you will
        receive a check from the county the week
        following the tax lien sale.

        ► You can also make additional deposits
        anytime throughout the sale. Deposits
        must be made in the name of the person
        buying the tax lien certificate and no
        transfer of deposits from one account to
        another is allowed.

     • All seating is on a first come, first
       served basis so it’s best to get there
       as early as possible.

     • You must be present at the tax lien sale
       to bid. You cannot have someone do it
       for you. If you live out of town, this
       means you will have to travel to the
       county. For this reason, it’s best to
       buy tax liens in states that are in
       close proximity of where you live.

3.   Colorado: The Day of the Tax Sale

     • The sale begins early and lasts until
       5:00 pm at the latest. If all tax liens
       have not been sold, the sale is
       continued the next day.

     • You must be present and registered to
       participate in the bidding process.
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     • Each tax lien is auctioned off in order
       (or in close order) of the published
       list of the tax liens for sale that the
       county provides prior to the day of the
       auction

     • During the auction, the tax liens for
       sale are generally divided into four
       groups:

         1.) Liens that are $100 or less.

         2.) Liens that are between $100 and
             $2,000.

         3.) Liens that are more than $2,000.

         4.) Liens with alert information. The
             alert information is a good faith
             effort to share known information
             with prospective tax lien sale
             buyers. These liens are offered for
             open bidding.

     • Each bidder is given a paddle with a
       number on it. Bidding is on an open and
       competitive basis. When the taxes you
       wish to purchase are auctioned, you
       raise your paddle.

4.   Colorado: Premium Bids

     Unlike most states in which you bid on the
     amount of interest you are going to
     require the property owner to pay you,
     Colorado is structured as a premium bid. A
     premium bid is an amount over and above
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     the starting auction price (the amount of
     the unpaid taxes plus interest). Each
     successful bidder agrees to pay the
     delinquent or unpaid tax amount and the
     amount of their premium bid, which is
     essentially extra money.

     It’s important to keep in mind that the
     premium or extra money you pay for a tax
     lien certificate is non-refundable, which
     means you will not be paid back for the
     premium once the tax lien is paid off by
     the property owner.

    Here are some general procedures on premium
    bidding:

     • The auctioneer starts the bidding
       process for the premium amount only (a
       premium, as explained in the section on
       premium bids, is the amount over the tax
       due). The bidder offering the highest
       premium will successfully purchase the
       tax lien. Again, this premium bid will
       not be refunded to you once the taxes
       are paid by the delinquent property
       owner.

     • Premium bids are in increments or raises
       of $1.00, $5.00, $10.00, and up,
       depending on the value of the tax lien.
       Premium bids range from zero to 10% of
       the value of the amount of the tax lien
       up for sale.

     • Some counties do not allow premium bids
       below a certain tax lien amount. For
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        example, Larimer County only accepts
        premium bids on properties with a unpaid
        tax amount of $5,000 or more.

     • Once you’ve bought all the tax liens you
       want to purchase, you may leave at any
       time.

     • All successful bids are final. No
       changes in bids or cancellation of bids
       are allowed. Unless you do not have the
       funds to cover the purchase, the sale
       cannot be reversed.

5.   Colorado: Purchasing Tax Lien Certificates

     • Purchases of tax liens must be paid
       before leaving the auction premises.
       Failure to do so will result in the loss
       of your lien purchase.

     • A tax lien certificate is issued for
       each lien to the successful bidder. It
       will list the property description,
       purchase amount, rate of interest, the
       buyer’s name, and the date of sale.

     • Certificates will only be issued in the
       name of the buyer.

     • Tax lien certificates are either given
       to you upon purchase, which you must
       keep for your records, or they are held
       by the treasurer’s office of the county
       from which it was purchased. If you get
       to keep your tax lien certificate, do
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        not lose it as you will need it once it
        is redeemed.

     • If you decide you want to transfer your
       tax lien certificate to someone else
       before it is paid by the property owner,
       most counties allow you to do this. But
       when you sign away your rights to it,
       you are also relinquishing your share of
       the interest earned on it.

     • Interest on your tax lien certificate
       begins to grow from the month the
       certificate is issued. The interest
       earned is calculated on a monthly basis
       based on the rate and the number of
       months you hold the tax lien certificate
       before it is paid. For example, a tax
       certificate worth $2,000 at a 12%
       interest rate (the rate established for
       2001) would be:

        Rate of interest earned annually:
        12% ÷ 12 months = 1% per month

        Total interest earned on the lien:
        1% x 14 months = 14%

        14% x $2,000 = $280

        You would earn $280 on your tax lien
        certificate.

     • The amount of interest you earn on your
       tax lien certificates depends on the
       amount of the certificate, how long you
       have it before it is paid, and what the
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        current year’s interest rate is (in
        Colorado, tax lien interest rates change
        yearly).

     • The interest you earn is simple
       interest. It is not compounded.

6.   Colorado: Endorsing Subsequent Years Taxes

     Each year following the purchase of your
     original certificate, if the property
     owner has not paid their current year
     taxes by the due date, you have the option
     of paying (or endorsing) the subsequent
     year’s unpaid taxes and adding them to
     your original certificate without having
     to attend another tax sale auction. This
     procedure is called sub-taxing.

     You are not required to pay any additional
     taxes by endorsement, but you cannot bid
     on them at another tax sale.

     • In July of any given year, the
       Treasurer’s Office will send you a
       notice listing what certificates you can
       endorse and the amount of each
       endorsement.

     • You do not have to pay a premium on
       endorsements, just the amount of the
       unpaid taxes, plus interest.

     • The interest rate on endorsements is the
       same as the interest rate on your
       original tax lien sale certificate and
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        remains the same for the life of the
        lien.

7.   Colorado: Redeeming Tax Lien Certificates

     • The redemption period (or the amount of
       time the property owner has to pay you
       for the tax lien) is 3 years from the
       year of the original sale.

     • When taxes are redeemed, you will either
       receive a check or notification that
       your tax lien certificate has been
       redeemed.

     • Property owners do not contact you
       directly to pay off the tax lien. They
       must do this at the county treasurer’s
       office.

     • The delinquent property owner can pay
       off your tax lien certificate at any
       time before and after the sale. If the
       property owner pays the tax lien before
       the sale, his name is crossed off the
       county’s list of liens for sale. If the
       property owner, pays after the sale, you
       will earn the interest on the number of
       months you’ve held the tax lien
       certificate.

     • If the certificate of purchase is in
       your possession, you will need to return
       it to the county treasurer’s office.
       Upon receipt of the certificate, you
       will receive a check, which will include
       the amount of the tax you purchased,
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        plus the interest that has accumulated
        from the day of the sale to the date of
        redemption. Again, you are not refunded
        for any premium amount you paid at the
        auction.

     • If the county treasurer’s office has
       your tax lien certificate, you don’t
       have to do anything at all – they send
       you a check in the mail. Make sure your
       correct address is on file at the
       treasurer’s office.

     • Interest is only paid to the tax lien
       certificate holder when the lien is
       redeemed by the delinquent property
       owner. You cannot collect your interest
       early.

8.   Colorado: Getting a Treasurer’s Deed
     Once three years have passed and the
     property owner still has not redeemed (or
     paid) your tax lien certificate, you are
     entitled to apply for what is called a
     Treasurer’s Deed, which is the final step
     in the tax lien process.

     You must apply for a Treasurer’s Deed with
     the county treasurer’s office that issued
     you the tax lien certificate. In some
     counties, deed applications may be made 6
     months before the 3-year redemption
     period. Applications may be made by mail,
     phone, or fax.

     Here are more procedures involved in
     getting a Treasurer’s Deed in Colorado:
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     • Along with your application, you will
       have to pay a deposit, as well as
       additional processing fees required by
       the county. Don’t worry, if the property
       owner redeems the tax lien during your
       application for a deed, the county will
       refund you all of your deed application
       fees (but you will not earn interest on
       this money).

     • Once an application is made to the
       Treasurer’s office, you must advertise
       and post public notice on the property
       itself. You must also notify anyone with
       a legal interest in the property (i.e.
       the property owner,

     • Before you receive the deed, all
       subsequent taxes and current taxes must
       be paid. Again, all these fees will be
       refunded if the property owner redeems
       the tax lien during your application for
       the deed.

     • The application processing time takes
       five to 9 months. The property owner can
       redeem the lien at any time during the
       application process.

     • Finally, if you are issued a Treasurer’s
       Deed to the property for which you hold
       a tax lien certificate, you will then
       have to go to court to bring a “quiet
       title action”, which is a legal
       proceeding asking that you be declared
       the true owner of the property.
Section #3: Colorado – An Example Of A State That
Sells Tax Lien Certificates
Page 48 of 89


    Even if Colorado is not one of the states
    where you want to invest in tax liens, the
    outlined procedures above should give you
    an idea of how a “tax lien type state”,
    like Colorado, conducts the various
    aspects of their tax lien procedures, like
    auctions, bidding, certificate purchases,
    redemption, foreclosure, etc. It is worth
    noting again that tax lien type states all
    differ in their exact procedures, so be
    sure you find out what these procedures are
    before you invest in tax liens. For more
    information on tax lien type states, please
    refer to Section #7, “States Where Tax Lien
    Investing Is Most Profitable” on page 78.
Section #4: Useful Tips on Buying Tax Lien
Certificates at Tax Sales
Page 49 of 89


Section #4: Useful Tips on Buying Tax Lien
Certificates at Tax Sales

Now that you know the procedures involved in
buying property tax liens, it’s time to
formulate a strategy.

The first step in your tax lien investment
strategy is to do some research before you
start investing. These steps include:

     1. Review the list of states that sell tax
        lien certificates on properties.

     2. Choose a county to invest in property
        tax liens.

     3. Call the county treasurer’s office for
        tax lien sale information.

     4. Get a copy of the list of available tax
        liens for sale.

     5. Research the properties.

     6. Check the county’s assessment of the
        properties.

     • Review the list of states that sell tax
       lien certificates on properties.

        On page 78 of this report in Section #7,
        ”States Where Tax Lien Investing Is Most
        Profitable”, you will find a complete
        list of the states that sell tax lien
        certificates on properties.
Section #4: Useful Tips on Buying Tax Lien
Certificates at Tax Sales
Page 50 of 89


        There currently over 30 states that sell
        tax lien certificates. The states not on
        the list sell delinquent properties at
        auction.

        Of the roughly 30 states that sell tax
        lien certificates, approximately 15
        offer exceptionally high rate of return.
        If you go to page 78, you will find a
        list of states that pay 15% or more on
        their tax lien certificates. These are
        the states you should focus on.

        ► Determine what interest rate you want.
        The rates offered vary from state to
        state. They can also vary from year to
        year. For example, Michigan offers 15%
        the first year and 50% the second year.

        ► If your goal is just to get a high
        rate of return on your tax lien
        investment, you might want to consider
        investing in states with a strong
        economy. The odds are you have a better
        chance of getting paid back for the tax
        lien you hold. If the state has a low
        unemployment rate and depreciating real
        estate values, this is not a good state
        to invest in.

        ► Invest in tax liens close to home.
        If you live in a state that sells tax
        lien certificates, you’re in luck.
        Buying property tax liens in the state
        you live in is the first place you
        should invest.
        You see, many state counties require you
        to be present to bid on their tax liens
Section #4: Useful Tips on Buying Tax Lien
Certificates at Tax Sales
Page 51 of 89


        so it is far more convenient to drive to
        an auction in a state (and county)
        close to your home.

        Also, it always wise to personally
        inspect the properties you’re interested
        in because you might end up owning these
        properties one day and you want to make
        sure they have some value. If you live
        close by, you won’t have to drive hours
        out of your way to see these properties
        for yourself.

        If you don’t live near the county where
        the property is located, you can always
        ask the county treasurer’s office for
        advice (but they are typically too busy
        to offer help)or you might try calling a
        real estate broker in the area.

     • Once You’ve Narrowed Down A Particular
       State, Choose a County To Invest in Tax
       Liens
       Because state counties are the ones who
       that hold tax auctions (where tax lien
       certificates are sold), you will have to
       choose one or more counties to begin
       your investing. These are a few key
       points to be aware of when selecting an
       appropriate county:

        ► Select rural counties
        Consider picking tax liens in rural
        counties. Why? The competition is often
        next to none with bargains galore. Plus,
        the staff at the county treasurer’s
        office has far more time to answer your
        questions and give you advice. In a
Section #4: Useful Tips on Buying Tax Lien
Certificates at Tax Sales
Page 52 of 89


        small rural county, the staff usually
        knows everything there is to know about
        the properties and will share with you
        what they know.

        ► If you decide not to pick rural
        counties, find counties that have a
        friendly, helpful staff.

        ► Select nice neighborhoods
        Within every county, there is a “good
        area” and a less desirable one. You want
        your tax lien certificate to be on
        property in a desirable area. Talk to
        the staff at the county treasurer’s to
        find out which areas are nicest.

        ► Find a county that meets your needs.
        For example, if you want to purchase tax
        lien certificates in another state but
        do not want to travel to the tax
        auction, find a county that will allow
        you to bid through the mail or purchase
        tax liens over the counter or online.
        That way, you will not have to take on
        the inconvenience or expense of
        traveling.

        ►Choose a county that has accessible
        resources and forms. Many counties now
        provide their tax sale information and
        forms online, which is probably the most
        convenient way for you to access them,
        especially if you live out of state.

     • Call the County Treasurer’s Office For
       Tax Sale Information
       As soon as you have determined the state
Section #4: Useful Tips on Buying Tax Lien
Certificates at Tax Sales
Page 53 of 89


        and the county you want to buy in, you
        should contact the county administration
        department that handles property tax
        liens (usually the county treasurer’s
        office) to find out the date, time, and
        place of the next tax auction. Each
        state is different in when and how often
        they hold their auctions. Some states
        hold auctions once a year, like
        Colorado, while other states hold their
        auctions 4 times a year or even monthly.

        Here are a list of questions to ask a
        county treasurer’s office:

          1.) What is the date and time of your
              next tax auction (or tax sale)?

          2.) Are auctions held more than once a
              year? If so, what are the dates
              and times of the other auctions
              scheduled for the year?

          3.) What is the location of the
              auction?

          4.) Do I have to be physically present
              at the auction in order to bid?

          5.) What are the registration
              procedures? Is a deposit required?
              Do I have to pre-register?

          6.) What are your bidding rules?

          7.) If I buy a tax lien certificate,
              what is the method of payment?
Section #4: Useful Tips on Buying Tax Lien
Certificates at Tax Sales
Page 54 of 89


            8.) Will I have to pay additional
                costs, like county administrative
                fees?

            9.) What is current interest rates on
                your tax lien certificates?

            10.) What is the redemption period?

            11.) What happens if the delinquent
                 taxpayer doesn’t redeem the tax
                 lien certificate I buy? What are
                 your foreclosure procedures?

            12.) Can I purchase the leftover liens
                 from the county after the auction?
                 To find out what leftover liens
                 are, please go to page 66.

        These may seem like a lot of questions
        to ask, but keep in mind the county will
        probably refer you to a page on their
        website to get this information or else
        they will send you something in the
        mail.

        However you get hold of the county’s tax
        lien information, make sure you:

        ► Find out the county’s current interest
        rate on their tax lien certificates
        (which is the same for all the counties
        in that state). It is smart to invest in
        states that offer at least a 16%
        interest rate on their tax lien
        certificates, especially if your goal is
        to get your money back for the tax lien
Section #4: Useful Tips on Buying Tax Lien
Certificates at Tax Sales
Page 55 of 89


        certificate with a high rate of
        interest.

        ► Find out the county’s redemption
        period. Ideally, you should invest if
        the redemption period is 3 years or
        less.


        ► Find out the county’s bidding
        procedures. In general there are four
        types of bidding procedures:

            1. Bidding on Interest Rates: In most
               states what you are bidding on is
               how much interest you are going to
               require the delinquent owner to pay
               you when he redeems your tax lien
               certificate. So, for example, if the
               state sets interest rates at 24%,
               the opening bid would be 24% and
               then go down from there.

            2. Premium Bidding: With premium bids,
               you pay the taxes, interest, and
               penalties, plus an certain amount of
               cash on top of that. What you bid on
               is the amount of cash you are
               willing to pay, which you will not
               get back when the tax lien
               certificate is redeemed. Colorado is
               an example of a state that uses
               premium bidding.

            3. Dividing Ownership: Buyers bid on
               the percentage of ownership in the
               property for which the tax lien
               certificate is held. Bidding starts
Section #4: Useful Tips on Buying Tax Lien
Certificates at Tax Sales
Page 56 of 89


             at 100% and goes down from there.
             So, if you successfully bid 80%
             ownership on a property for which
             you hold a tax lien certificate, in
             the event the property forecloses
             and you get the property, you will
             have to share ownership with the
             delinquent owner, who holds the
             other 20%.

          4. Bidding on the Property: With this
             type of bidding, buyers compete on
             the amount they are willing to pay
             for the property in the event the
             owner does not redeem the tax lien
             certificate. At this type of
             auction, all you have to pay is the
             amount of the unpaid taxes.

     • Get a Copy of the List of Available Tax
       Liens For Sale
       There are literally thousands of
       property tax liens for sale by state
       counties all over the country and in
       order to start investing in them, you
       need to find out where and when these
       tax sales are taking place and what tax
       liens are being sold. Before you go to
       the tax auction, it is also important
       that you get an accurate list of the tax
       lien certificates for sale.

        Each state’s law also requires the list
        of properties be published in the local
        newspaper prior to the day of the sale,
        but you want to get the list well before
        it is published in the newspaper.
Section #4: Useful Tips on Buying Tax Lien
Certificates at Tax Sales
Page 57 of 89


        In order to do this, you need to call
        the counties in the state (or states)
        that you want to invest in and get this
        information. Most counties that sell
        property tax liens are more than happy
        to provide you with information about
        their tax sales, but the hard part is
        figuring out who to call.

        The best thing to do is to call the
        county treasurer’s office (or county
        courthouse) in the county where you want
        to purchase tax lien certificates and
        ask them how you can get a copy of the
        list of the property tax liens being
        sold at the auction. For a listing of
        state counties, please visit the County
        Phone List section on our website at:
        http://taxliensalecertificate.com/countylist.htm.

        Our County Phone Lists give you the
        name, phone number, and address of every
        single county in states where tax lien
        investing is most profitable.

        Once you contact the county treasurer’s
        office, ask for a copy of the tax liens
        for sale list (most county treasurers
        will mail or fax you this information
        or they will give you a link to their
        website where the property tax liens for
        sale are advertised). You can also ask
        to be put on their mailing list so that
        you will be notified about any upcoming
        tax sales ahead of time.

     • Research the properties
       Once you have a list of available
Section #4: Useful Tips on Buying Tax Lien
Certificates at Tax Sales
Page 58 of 89


        property tax liens in the county, you
        must then research the properties (on
        which the tax liens are held).

        Researching properties is important
        because if the tax lien is not redeemed
        by the property owner, you will
        eventually gain ownership to that
        property. You don’t want to be stuck
        with property that is worthless so be
        sure the property you’re investing in is
        of some market value.

        A property has market value because
        something can be done with it. For
        example, don’t invest in tax liens on
        properties that are located in desolate
        mobile home parks or ghost towns. Also,
        beware of investing in unbuildable
        strips of land because there’s a good
        chance it’s useless. The only value of
        land lies in what you can do with it and
        that is why you need to get a good
        understanding of the properties before
        you buy tax liens.

        Researching the list of properties is
        not an easy task. The list generally
        includes some sort of description of the
        property, their locations, and the
        amount of the taxes owed, but what it
        will look like are a bunch of numbers
        that you probably won’t be able to
        decipher. Here is an example:
Section #4: Useful Tips on Buying Tax Lien
Certificates at Tax Sales
Page 59 of 89


        Parcel No.     Titleholder    Location     Amount Due

        460-17-95691   Mark &        Section 14,   $1,015.67
                       Karen         Township
                       Wilson        25S, Range
                                     29E
                                     R 14 25 29
                                     1368 1815



        As you can see, the first column lists
        the parcel number, the second column
        lists the name of the individuals on the
        title (or who is responsible for paying
        the taxes). The third column lists the
        location of the property and the fourth
        column lists the amount due.
        Now that you have the list, here’s what
        you need to do:
        ► Think about how much you want to
        invest. Looking at the list, determine
        which tax liens are in your price range.

        ► Call the county treasurer’s office
        again and ask for help in translating
        the listings that you want to invest in.
        These are some questions to ask:
            1. What area of the county is this
               property located in?
            2. How is this property zoned
               (commercial, residential, etc.)?
            3. Are the properties above or below
               the average home price?
            4. Is this a good area to buy a tax
               lien?
Section #4: Useful Tips on Buying Tax Lien
Certificates at Tax Sales
Page 60 of 89


        County employees are generally very
        helpful when it comes to providing
        information to the public about tax lien
        sales since county sales of tax liens
        help to keep them in business. That is
        why when you research properties with
        tax liens always:
        ► Establish a Relationship With the
        Staff at the county treasurer’s office.

        The surest way to get tax lien
        certificates on the best properties is
        to get help from the staff at the county
        treasurer’s office. They can steer you
        to where the best properties are.

        Some counties have entire towns where
        you definitely would not want to own
        property. Problem areas, or problems
        with individual properties are known by
        the local people, so be sure you make
        friends with one, preferably at the
        county treasurer’s office (or even the
        county assessor’s office).

        But, whatever you do, do not mention
        foreclosure. Local officials don’t mind
        helping you find tax liens to purchase,
        which will benefit the county, but they
        do not want to be in a position of
        helping you foreclose on property in
        their area.

        Visiting the with the staff in person is
        always best, but you can also call them
        on the phone. Just be friendly and
        polite at all times.
Section #4: Useful Tips on Buying Tax Lien
Certificates at Tax Sales
Page 61 of 89



        Also, be sure to ask the staff which
        areas in their county have the highest
        rates of redemption and which have the
        lowest (you want to buy properties in
        areas with high rates of redemption).
        Get as much information as you can from
        the county employee you talk to. Whoever
        you talk to should be very helpful in
        identifying good areas from the bad.
        Check the County’s Assessment of the
        Properties
        One of the great features of tax lien
        certificates is that each property comes
        with a free professional appraisal of
        its market value by a government agency.
        Look at these appraisal values closely.
        Here are some facts to remember:

        ► County assessors evaluate property
        according to “Land Value” and
        “Improvements”. These two numbers added
        together equal the total assessed value
        of the property, which may or may not be
        equivalent to market value.

        For example, if the land = $8,000 and
        the improvements = $36,972, the total of
        these two number is $44,972.00, which is
        the amount the property taxes are based
        on.
        If you have any questions at all about
        the appraised value of the property
        you’re interested in, call the county
        assessor’s office for help.
Section #4: Useful Tips on Buying Tax Lien
Certificates at Tax Sales
Page 62 of 89


        ► Relate the appraised value of the
        property to other properties in the
        area.
        Your goal in checking the county’s
        appraisal of the property is to
        determine whether its appraised value is
        comparable to the appraised values of
        other properties in the area. If the
        appraised value is much lower than other
        properties in the area, don’t think
        you’ve found a great bargain – it’s more
        than likely something is wrong with the
        property. Do not deal with property that
        has an appraised value that is
        significantly low for its location.

        ► Check out the zoning of the property.
        Call the county assessor’s office to
        find out the zoning of the property.
        There are 5 major types of property,
        including residential, commercial,
        industrial, agricultural, and special
        purpose (which includes schools and
        churches, government land, etc.).

        To be on the safe side with tax lien
        investing, it is smart to stick with
        residential properties, which is
        discussed in more detail on page 63.
        When you call the county treasurer’s
        office, ask them what the property has
        been zoned for and make sure it is
        residential.

        ► When talking to the county assessor’s
        office, check to see if your property is
        located in a designated floodplain or to
        see if the property has any
Section #4: Useful Tips on Buying Tax Lien
Certificates at Tax Sales
Page 63 of 89


        environmental problems. Needless to say,
        steer clear of properties that flood or
        one that is environmentally
        contaminated.

        ► Finally, if you think you have found a
        good tax lien to invest in, you might
        want to verify the information with a
        local real estate agent by asking him
        for an estimated sales price for the
        house.
     General Tips
     Now that you have your research in hand,
     it’s time to start investing. Before you
     attend a tax auction, read these useful
     recommendations for getting the best
     bargains and the biggest returns on tax
     lien certificates.
     • Stick with residential properties
       As mentioned previously, buy tax liens
       on residential properties as opposed to
       commercial or industrial properties,
       which can be hassle (and expensive).
       Residential properties have a higher
       rate of redemption and are less likely
       to have environmental problems.
     • Stick with improved properties
       If you decide you want to diversify your
       tax lien portfolio and try your hand at
       investing in commercial properties as
       well, incredible opportunities exist in
       tax lien certificates on commercial
       properties.
        Just remember to stick with improved
        properties, as opposed to raw land. In
Section #4: Useful Tips on Buying Tax Lien
Certificates at Tax Sales
Page 64 of 89


        fact, if you decide to invest in
        commercial property, do not invest in
        raw land, which is a much more difficult
        to evaluate and is almost always a bad
        deal.

        For the most part, a property has market
        value because something can be done with
        it. Improved property has proven that is
        has some use. Raw land, on the other
        hand, has not had any improvements done
        to it and one of the reasons is because
        the local government will not allow
        improvements.

        Whatever the case may be, raw land
        requires a good deal more investigation
        and may require the expertise of someone
        in the know, like an architect or real
        estate broker. You should avoid it in
        your tax lien investment strategy.

     • Bid on higher value properties
       You should bid on higher value
       properties because they tend to take
       longer to be paid off. The larger the
       dollar amount of the lien and the longer
       you hold your lien, the more interest
       you will make on your investment.
     • Bid on higher value tax liens
       If you have the money to invest, try
       bidding on tax liens of values greater
       than $2,000. This is because you will
       earn more money in interest.

        For example, compare a $5,000 tax lien
        that is held for 20 months at 12% with a
Section #4: Useful Tips on Buying Tax Lien
Certificates at Tax Sales
Page 65 of 89


        $1,000 lien that is held for 15 months
        at the same interest rate:


         Rate Of Interest on a $5,000 Tax lien
            held for 20 months @ 12% interest
                Rate of interest earned annually:
                12% ÷ 12 months = 1%
                Total interest earned on the lien:
                1% x 20 months = 20%
                20% x $5,000 = $1,000
                You would earn $1,000 on your
                $5,000 tax lien.
        Now, let’s look at the rate of return
        for the $1,000 lien:
         Rate Of Interest on a $1,000 Tax lien
            held for 20 months @ 12% interest
                Rate of interest earned annually:
                12% ÷ 12 months = 1%
                Total interest earned on the lien:
                1% x 15 months = 15%
                15% x $1,000 = $150
                You would earn $150 on your $1,000
                tax lien.
        Like a bank CD, the more money you put
        in and the longer you keep invested, the
        more money you will make in interest. If
        you have the cash to spend on a tax
        lien, go for the lien values greater
        than $2,000.
Section #4: Useful Tips on Buying Tax Lien
Certificates at Tax Sales
Page 66 of 89


     • Purchase a wide variety of properties.

        Don’t put all of your eggs in one
        basket. If you bring $5,000 to a tax
        lien auction, don’t blow it all on one
        property. The investment risk should be
        spread over a number of properties in
        the event the lien is paid off early by
        the property owner, in which case you
        might lose money.
     • Do not purchase liens on vacant land
       because these are too easily redeemed.
       You don’t want a property owner to pay
       off your tax lien certificate right away
       because you will earn less interest and,
       you could even lose money if the
       interest you earn doesn’t reimburse you
       for the premium you had to pay to buy
       the lien.

        You want your tax lien to earn enough
        money to where you cover the premium on
        the certificate and earn some interest.
     • Purchase leftover liens
       Even if you miss a county’s tax auction,
       many state counties offer leftover liens
       not sold at auction to prospective
       buyers.

        What are leftover liens? They are simply
        liens that did not sell at the tax
        auction. In fact, so many leftover liens
        do not sell at county tax auctions that
        billions of dollars in available tax
        liens exist in more than 1,300 counties
        in 27 states.
Section #4: Useful Tips on Buying Tax Lien
Certificates at Tax Sales
Page 67 of 89



        Typically, there are far more tax liens,
        available for sale than there are
        investors to buy them so counties are
        left with a surplus. These liens are
        available to anyone, but the only major
        drawback in buying directly from the
        county treasurer’s office is that the
        selection is less, and the properties
        tend to be of minimal value. So, if you
        hope to someday own the property for
        which you hold a leftover lien
        certificate, you are advised to go to
        the property and see it for yourself
        before making a decision.
        Although leftover liens, or “county held
        certificates”, as they’re often called,
        tend to be on property of little value,
        they are still a good investment because
        you get the same benefits as a regular
        tax lien, which means a guaranteed rate
        of return on the money you paid to
        purchase it. But, unlike regular tax
        liens, you do not have to bid against
        anybody and you get to keep the maximum
        interest that the state allows(or, in
        the case of Colorado, you don’t have to
        pay a premium bid).
        If a state county does offer leftover
        liens, they will have a list of them in
        the treasurer’s office. Some counties
        also make this information available on
        their websites.
        How To Purchase Leftover Liens
        The process of purchasing leftover liens
        is very simple. In many cases, you do
Section #4: Useful Tips on Buying Tax Lien
Certificates at Tax Sales
Page 68 of 89


        not have to buy these liens in person –
        you can purchase them by mail. Some
        states even allow you to buy them online
        from their website.
        If you do buy leftover liens, here are
        some pointers:
        ► Check with the county to make sure
        they offer leftover liens because not
        all do. Also, make sure the county
        allows for direct purchases after the
        auction (which means you can buy
        leftover liens directly from the county
        without having to bid at an auction).
        Some states, like Iowa, provide that if
        any leftovers exist, they will be
        auctioned off at another time.
        ► Your chances of finding good deals on
        good properties is greater in rural
        counties, where the auctions draw far
        less people. This means that rural
        counties are not only more likely to
        have more leftovers, but these leftovers
        are also more likely to be of some
        value. Big cities, on the other hand,
        have less of a selection and the
        properties are often not worth investing
        in.
        ► Buy early in the year because with a
        leftover lien, you will have to pay the
        county treasurer whatever interest and
        penalties have accumulated up to that
        time (more penalties and interest will
        have been added on later in the year).
        ► Find out from the staff at the county
        treasurer’s office which leftover liens
Section #4: Useful Tips on Buying Tax Lien
Certificates at Tax Sales
Page 69 of 89


        are winners and which ones are duds.
        Remember, if the tax lien is not
        redeemed by the property owner, you do
        not want to be stuck with worthless
        property.

        ► Leftover liens are a good investment
        For those investors who do not want to
        go to the trouble of attending county
        tax auctions in person, which is a
        requirement in most counties to bid and
        purchase tax lien certificates, leftover
        liens are the answer.

        Although chances are you will not walk
        away with a valuable piece of property,
        you will make a guaranteed, high rate of
        return on your investment once the
        property owner redeems the lien.

        What’s even more appealing about
        leftover liens is that the interest rate
        will be the highest possible and you
        generally do not have to physically go
        to the county treasurer’s office to buy
        your lien – you can buy your lien via
        mail, which is the ideal arrangement for
        out-of-state investors.
Section #5: The Risks Involved In Tax Lien
Investing
Page 70 of 89


Section #5: The Risks Involved in Tax Lien
Investing

Most safe investments with high rates of return
involve an element of risk and the same is true
with property tax liens.

For example, if you’ve ever invested your money
in the stock market, you know how risky that
can be. With stock market investing, your money
is often here today and gone tomorrow. Not only
is your rate of return unreliable, but you can
even lose all of the hard-earned money you
started with. Yet millions of Americans invest
in the stock market every day without a second
thought.

Unlike the stock market, tax liens are not
risky. They are guaranteed by the government to
provide high rates of returns to their
investors. In fact, they are far safer than
investing in the stock market. Nevertheless,
here are the risks involved in tax lien
investing:

     • Bankruptcy
       One of the risks you assume when you buy
       a tax lien certificate is that the
       property owner may declare bankruptcy.
       This doesn’t mean you won't get paid back
       for your tax lien certificate, plus the
       interest you’re owed. You will, it just
       may take a little longer.

        You see, tax liens are a “first, prior,
        perpetual lien against the property”.
        This means taxes take priority over
Section #5: The Risks Involved In Tax Lien
Investing
Page 71 of 89


        mortgages, other legal judgments, and
        other liens. Also, tax liens cannot be
        erased from legal record until they are
        paid in full with penalties, interest,
        and all. This is great news for the tax
        lien investor because it means you can
        feel confident knowing you will get your
        money back, plus interest.

        Nevertheless, bankruptcy filings by
        property owners could delay the payment
        of tax lien certificates. However, tax
        sales liens are rarely denied by
        bankruptcy courts and are almost always
        paid.

        When the delinquent property owner files
        bankruptcy, the county treasurer will
        notify you. If you get a notice of
        bankruptcy, be aware that you may need
        to file a claim. The best thing to do is
        to call the county treasurer’s office to
        find out what their bankruptcy
        procedures are for tax lien holders.

        Whatever you do, don’t let the threat of
        bankruptcy deter you from investing in
        tax liens because it does not happen
        very often and, if it does, the tax lien
        investor is first in line to get paid
        back.

     • Environmental problems

        Another risk involved in tax lien
        investing is that properties that have
        tax liens can be determined by the
Section #5: The Risks Involved In Tax Lien
Investing
Page 72 of 89


        federal government’s Environmental
        Protection Agency (EPA) to be
        environmentally contaminated (with, for
        example, high levels of pesticides or
        other hazardous chemicals).

        In order to avoid this considerable
        risk, you should only invest in
        residential properties, which are very
        unlikely to be tainted with hazardous
        substances. In fact, the possibility of
        residential property being contaminated
        is so rare that almost no buyers, real
        estate agents, or even lenders, pay much
        attention to it.

        For those of you who intend to follow
        our recommendation to “stick with
        residential properties”, environmental
        problems are not even an issue. It’s if
        you decide to invest in tax liens on
        industrial, or even commercial,
        properties that it becomes an important
        consideration.

        Properties that are zoned for commercial
        or industrial use are much larger risk
        and will require extensive research to
        make sure they are not environmentally
        contaminated(please refer to page 57
        for more information on researching
        properties).

        Getting stuck with a property that has
        environmental problems is serious
        business and could cost you everything
        you own so you would be smart to consult
        the proper professionals for guidance
Section #5: The Risks Involved In Tax Lien
Investing
Page 73 of 89


        when dealing with commercial or
        industrial properties.

     • Consumer Fraud
       As with so many other legitimate
       investment opportunities that provide
       high rates of return, tax liens are prey
       to con artists looking to make a quick
       buck on unsuspecting investors. When
       researching tax lien certificates,
       beware of consumer fraud.

        Read these helpful tips and don’t become
        a victim:

        ► Beware of local buying services that
        offer to research and purchase your tax
        lien certificates for you. One of the
        great benefits of tax lien investing is
        that you can buy tax lien certificates
        yourself directly from the government at
        no additional cost.

        You don’t, for example, have to pay a
        stockbroker to buy shares of stock in
        the market; you can simply go to a tax
        auction and buy a tax certificate
        yourself so why pay someone else to do
        something you can yourself at no cost?

        ► Beware of pyramid schemes that charge
        you an entry fee and processing fees to
        buy tax lien certificates.

        ► Do not join any tax lien investment
        clubs, investment groups, etc. Typically
        these groups try to pass themselves off
Section #5: The Risks Involved In Tax Lien
Investing
Page 74 of 89


        as legitimate when they’re really just
        an illegal pyramid or multi-level
        marketing scheme in sheep’s clothing.

        ► Never purchase tax lien certificates
        or let a representative purchase tax
        lien certificates for you on properties
        that you know nothing about. Remember,
        getting information on the properties
        you’re about to invest in is important
        because if the tax lien is not redeemed
        by the property owner, you will
        eventually gain ownership to that
        property. You don’t want to be stuck
        with property that is worthless so be
        sure the property you’re investing in is
        of some market value. For this reason,
        do not invest in properties blindly –
        research them yourself to make
        absolutely sure they are worth investing
        in.

        These are only some of the types of tax
        lien consumer fraud that are common.
        When you begin your tax lien investing
        and are tempted by a “get rich quick”
        scheme, if it’s too good to be true, it
        probably is. But, if you’re in doubt,
        contact the National Fraud Information
        Center at 1-800-876-7060 or visit their
        website at http://www.fraud.org.
Section #6: List Of States That Sell Tax Lien
Certificates
Page 75 of 89


Section #6: List Of States That Sell Tax Lien
Certificates

Remember, not all states sell property tax
liens. Some states, like California, are
considered a “tax deed” states (as opposed to a
“tax lien” state) because they sell delinquent
properties at auction.

For example, in California if an owner does not
pay property taxes, the property becomes tax
defaulted and the owner has five years to
redeem the property. If the owner redeems, he
must pay interest, penalties, and costs to the
tax collector. If the owner does not redeem,
the county treasurer’s office does not place a
lien on the property (as a tax lien state
would); instead, they sell the property at
auction. A buyer who bids on the property at
auction will not be paid any interest (as he
would be on a lien); he is bidding on the
property and that is all he would get.

Unlike tax deed states, tax lien states, which
are the focus of this report, let you earn a
high rate of interest on the tax lien
certificate you own and collect the property
for pennies on the dollar if the owner fails to
redeem.

Here is a complete list of states in the
continental U.S. that sell property tax liens,
as well as interest rates and redemption
periods for each state. The interest rates and
redemption periods are subject to change.
Please call each state for verification. The
states are listed in alphabetical order:
Section #6: List Of States That Sell Tax Lien
Certificates
Page 76 of 89


                        List of Tax Lien States

     State                 Interest Rate                 Redemption Period

    Alabama                     12%                     3 years

    Arizona                     16%                     3 years

    Colorado     Varies (9 percentage points      3 years
                 above the federal discount rate;
                 interest rates range between
                 11% to 15%

     Florida                    18%                     2 years

    Georgia      20% to 40% (20% first year, no         1 year
                 matter when redeemed, 40%
                 second year.)

     Illinois    18% (18% for regular sale;             6 months, 2 years, 2.5
                 leftover liens-48%+)                   years

    Indiana      10% to 25% (1-6 months -               1 year
                 10%; 6 months-1 year - 15%;
                 after 1 year - 25%; 10% on
                 surplus bid; 12% on
                 subsequent taxes and
                 assessments)

      Iowa                      24%                     21 months

    Kentucky                    12%                     none

   Louisiana                    17%                     3 years

    Maryland       Varies depending on county           2 to 6 months
                     (ex. 24% Baltimore City
                    County, 20% Montgomery
                             County)

 Massachusetts                  6.5%?                    6 months

    Michigan      15% - 50% (15% first year, 50% flat   12 to 18 months
                         fee for second year)
Section #6: List Of States That Sell Tax Lien
Certificates
Page 77 of 89


                          List of Tax Lien States

     State                  Interest Rate              Redemption Period

   Mississippi                   18%                  2 years

    Missouri                     10%                  2 years

   Nebraska                      14%                  3 years

 New Hampshire                   18%                  2 years

   New Jersey              18% + 2% - 6%              2 years

New York (only in                10%                  2 years
 some counties)

  North Dakota                   12%                  3 years

   Oklahoma                       8%                  2 years

  Rhode Island       16% (10% flat fee 1-6 months; 1 year
                    1% for each succeeding month)

 South Carolina                   8%                  1 year

  South Dakota                   12%                  4 years

    Vermont                   6% to 12%               1 year

  West Virginia                  12%                  18 months

    Wyoming          18% (15% interest first year,    4 years
                     plus flat fee of 3%, no matter
                            when redeemed)
Section #7: States Where Tax Lien Investing Is
Most Profitable
Page 78 of 89


Section #7: States Where Tax Lien Investing Is
Most Profitable

The previous section listed all the states in
the continental U.S. that sell tax lien
certificates. Of the approximately 27 states on
that list, not all of them pay a high rate of
return on their tax lien certificates.

It’s best to focus on states where your
investment will bring you a high rate of
interest with a high level of security.
Remember, each state (and each county within
the state) can differ on their exact tax lien
procedures, so be sure to find out. The variety
of state laws governing tax lien procedures
ensures you that there is a state whose system
will fit your needs.

Here is the list of states where tax lien
investing is most profitable:

For more information on the different types of
bidding systems, please see page 55.

               List of the Most Profitable Tax Lien States

    State       Interest Rate      Redemption           Bidding System
                                     Period
    Arizona         16%          3 years           Bidding On Interest
                                                   Rates:The successful bidder
                                                   is the one willing to accept
                                                   the lowest amount of
                                                   percentage upon the amount
                                                   so paid, in order to redeem
                                                   the property from the sale,
                                                   which shall not exceed the
                                                   rate of 16% per year simple.
Section #7: States Where Tax Lien Investing Is
Most Profitable
Page 79 of 89



               List of the Most Profitable Tax Lien States

    State        Interest Rate       Redemption              Bidding System
                                       Period
   Colorado    Varies (9           3 years              Premium Bidding: Bidder
               percentage points                        willing to pay the largest
               above the federal                        amount of cash [called a
               discount rate;                           premium bid] over the
               interest rates                           amount of the tax lien.
               range between                            Premium bid is not
               11% to 15%                               refundable and does not
                                                        earn interest.

    Florida           18%          2 years              Bidding On Interest Rates:
                                                        Winning bid goes to the
                                                        person who will accept the
                                                        least rate of interest on the
                                                        amount of tax due. Bidding
                                                        starts at 18% and goes
                                                        down from there.

   Georgia     20% to 40% (20%     1 year               Bidding On Property:
               first year, no                           Property is sold to the
               matter when                              highest bidder; excess goes
               redeemed, 40%                            to tax sale surplus fund. If
               second year.)                            redeemed, tax purchaser to
                                                        receive excess money
                                                        back, if not redeemed,
                                                        excess goes to county
                                                        general fund.

    Illinois   18% (18% for        6 months, 2 years,   Bidding On Interest Rates:
               regular sale;       2.5 years            Winning bid goes to the
               leftover liens-                          person who will accept the
               48%+)                                    least rate of interest on the
                                                        tax lien to be paid by the
                                                        property owner. Bidding
                                                        starts at 18% and goes
                                                        down from there.
Section #7: States Where Tax Lien Investing Is
Most Profitable
Page 80 of 89



               List of the Most Profitable Tax Lien States

    State        Interest Rate         Redemption        Bidding System
                                         Period
    Indiana    10% to 25% (1-6       1 year         Bidding On Property:
               months - 10%; 6                      Property is sold to the
               months-1 year -                      highest bidder; excess goes
               15%; after 1 year -                  to tax sale surplus fund. If
               25%; 10% on                          redeemed, tax purchaser to
               surplus bid; 12%                     receive excess money
               on subsequent                        back, if not redeemed,
               taxes and                            excess goes to county
               assessments)                         general fund.

     Iowa             24%            21 months      Dividing Ownership:
                                                    Winning bid is the person
                                                    who pays the total amount
                                                    due, which is a lien on the
                                                    property, for the smallest
                                                    percentage of the property.
                                                    If the property is foreclosed,
                                                    and the purchaser agreed
                                                    to take less than a 100%
                                                    interest in the property, he
                                                    becomes the co-owner with
                                                    the delinquent taxpayer.

   Louisiana   17% (12% flat fee     3 years        Dividing Ownership:
               + 5% penalty, no                     Winning bid goes to the
               matter when                          person willing to pay the
               redeemed)                            total amount due, which is a
                                                    lien on the property, for the
                                                    smallest percentage of the
                                                    property. Louisiana has a
                                                    5% mandatory penalty, no
                                                    matter when redeemed.
Section #7: States Where Tax Lien Investing Is
Most Profitable
Page 81 of 89



                 List of the Most Profitable Tax Lien States
    State          Interest Rate          Redemption           Bidding System
                                            Period
   Maryland      Varies depending       2 to 6 months     Bidding On Property:
                 on county (Ex.                           Property sold at auction for
                 24% Baltimore                            the least amount of taxes,
                 City County, 20%                         interest, penalties and
                 Montgomery                               expenses. Buyer must pay
                 County)                                  taxes due at auction and
                                                          then must pay the rest
                                                          during foreclosure.

 Massachusetts          6.5%            6 months           Dividing Ownership: Winning
                                                          bid is the person who pays
                                                          the total amount due, which is
                                                          a lien on the property, for the
                                                          smallest percentage of the
                                                          property. If the property is
                                                          foreclosed, and the purchaser
                                                          agreed to take less than a
                                                          100% interest in the property,
                                                          he becomes the co-owner
                                                          with the delinquent taxpayer.
                                                          See: MassTaxDeeds.com

   Michigan      15% - 50% (15%         12 to 18 months   Dividing Ownership: Winning
                 first year, 50% flat                     bid is the person who pays
                 fee for second                           the total amount due, which is
                 year)                                    a lien on the property, for the
                                                          smallest percentage of the
                                                          property. If the property is
                                                          foreclosed, and the purchaser
                                                          agreed to take less than a
                                                          100% interest in the property,
                                                          he becomes the co-owner
                                                          with the delinquent taxpayer.

  Mississippi           18%             2 years           Premium Bidding: Bidder
                                                          willing to pay the largest
                                                          amount of cash in excess of
                                                          amount due. If property is
                                                          redeemed, the excess amount
                                                          is refunded to the buyer.
Section #7: States Where Tax Lien Investing Is
Most Profitable
Page 82 of 89



                List of the Most Profitable Tax Lien States
    State         Interest Rate           Redemption      Bidding System
                                            Period
  New Jersey      18% + 2% - 6%         2 years        Bidding On Interest
                                                       Rates: Winning bid goes
                                                       to the person who will
                                                       accept the least rate of
                                                       interest on the amount of
                                                       tax due. Bidding starts at
                                                       18% and goes down from
                                                       there. Premium bid is
                                                       allowed if rate of interest
                                                       is bid down to less than
                                                       1%, then premium bid
                                                       starts upward.

 North Dakota           12%             3 years        Bidding On Interest
                                                       Rates: Winning bid goes
                                                       to the person who will
                                                       accept the least rate of
                                                       interest on the amount of
                                                       tax due. Bidding starts at
                                                       12% and goes down from
                                                       there.

   Wyoming      18% (15% interest       4 years        Lottery: The first person
                first year, plus flat                  willing to pay the taxes,
                fee of 3%, no                          interest, penalties and
                matter when                            costs including charges is
                redeemed)                              the successful bidder.
                                                       Your number is drawn
                                                       and you either accept to
                                                       pay or decline. Wyoming
                                                       has a 3% flat fee, no
                                                       matter when redeemed.
Section #8: Contact Information For The Most
Profitable Tax Lien States
Page 83 of 89


Section #8: Contact Information For The Most
Profitable Tax Lien States

Now that you know the states where your tax
lien investment dollars will bring you the
highest rate of interest, here is contact
information for each of the most profitable tax
lien states listed in the previous section.

For a complete list of counties in each of
these states, please visit the County Phone
List section on our website at
http://taxliensalecertificate.com/countylist.htm.

Our County Phone Lists give you the name, phone
number, and address of every single county in
states where tax lien investing is most
profitable.

The following addresses and phone numbers will
help you get started:

Arizona
Arizona State Treasurer
1700 W. Washington St.
Phoenix, Arizona 85007
Phone: (602) 542-1463
http://www.az.gov/webapp/portal/ (State of
Arizona website)

Colorado
State Treasurer's Office
140 State Capitol
Denver, CO 80203
Phone: (303) 866-2441
http://www.state.co.us/gov_dir/governor_office.html
(Office of the Governor website)
Section #8: Contact Information For The Most
Profitable Tax Lien States
Page 84 of 89


Florida
State Treasurer’s Office
200 E. Gaines St.
Tallahassee, Florida 32399
Phone: (850)413-3100
http://www.myflorida.com/myflorida/counties.html (Website
with list of Florida counties)

Georgia
Georgia Dept. of Revenue
Property Tax Division
4245 International Pkwy, Suite A
Hapeville, Georgia 30354-3918
Phone: (404) 968-0707
http://www.state.ga.us/ (State of Georgia website)

Illinois
State Treasurer’s Office
100 West Randolph, Suite 15-600
Chicago, Illinois 60601
Phone: (312)814-1700
http://www100.state.il.us/government/county.cfm
(Website with list of Illinois counties)

Indiana
State Treasurer's Office
242 State House
Indianapolis, Indiana 46204
Phone: (317)232-6386
http://www.in.gov/tos/ (State of Indiana website)

Iowa
Treasurer of State
State Capitol
First Floor South
Des Moines, Iowa 50319
Phone: (515)281-5368
http://www.state.ia.us/ (State of Iowa website)
Section #8: Contact Information For The Most
Profitable Tax Lien States
Page 85 of 89


Louisiana
State Treasurer’s Office
900 North Third Street
3rd Floor, State Capitol
Baton Rouge, Louisiana 70802
Phone: (225)342-0010
http://www.treasury.state.la.us/ (Department of the
Treasury website)


Maryland
State Treasurer’s Office
80 Calvert St.
Annapolis, Maryland 21401
Phone: 1-800-974-0468
http://www.mec.state.md.us/ (State of Maryland
website)

Massachusetts

MassTaxDeeds.com




Michigan
Michigan Department of Treasury
Lansing, Michigan 48922
Phone: (517)373-3200
http://www.michigan.gov (Office of the Governor
website)
Section #8: Contact Information For The Most
Profitable Tax Lien States
Page 86 of 89


Mississippi
State Treasurer’s Office
1101 Woolfolk State Office Building, Suite A
Jackson, Mississippi 39205
Phone: (601)359-3600
http://www.treasury.state.ms.us/ (State Treasurer’s
website)

New Jersey
Office of the State Treasurer
State House, 1st Floor
Trenton, New Jersey 08625
Phone: (609)292-5031
http://www.state.nj.us/treasury/index.html (State
Treasurer’s website)

North Dakota
State Treasurer’s Office
600 East Boulevard
3rd Floor
Bismarck North Dakota 58505-0600
Phone: (701)328-2643
http://www.discovernd.com/ (State Treasurer’s
website)

Wyoming
State Treasurer’s Office
200 West 24th Street
Cheyenne, Wyoming 82002
Phone:(307)777-7408
http://treasurer.state.wy.us/ (State Treasurer’s
website)
Conclusion: Tax Lien Certificates Are An
Excellent Investment
Page 87 of 89


Conclusion: Tax Lien Certificates Are An
Excellent Investment

So, there you have it – all the information you
need to successfully invest in property tax
liens. You’ve learned all the specifics,
including:

     • What tax liens are.

     • What why you should invest in tax liens.

     • How to buy tax lien certificates,
       including the steps involved before,
       during, and after the tax sale.

     • An explanation of tax sale procedures in
       the state of Colorado.

     • Useful tips to help you double or even
       triple your tax lien investment dollars.

     • The risks involved in tax lien
       investing.

     • A complete list of states that sell tax
       lien certificates.

     • A list of states where tax lien
       investing is most profitable.

     • Contact information for the most
       profitable tax lien states.
Conclusion: Tax Lien Certificates Are An
Excellent Investment
Page 88 of 89



Keep these points already mentioned in the
report in mind:

  • Tax liens earn a higher rate of interest
    than Certificates of Deposit (upwards of
    10% and more like 20% to 25% interest!).

  • Tax liens are a low-risk investment. 98%
    of tax liens are eventually paid off in
    the state that offer them.

  • The law is on your side. You are not
    responsible for pursuing the delinquent
    property owner to pay you for the tax
    lien. State law requires that delinquent
    taxpayers redeem tax liens or risk losing
    their property.

  • If property owners do not pay you back for
    the tax lien, you can foreclose and own
    the property after the redemption period,
    which ranges between 1 to 3 years, and
    gain valuable real estate for pennies on
    the dollar.

  • Investing in tax liens is very easy, much
    easier to figure out than investing in the
    stock market.

  • You don’t have to have a lot of money to
    invest in tax liens. You can invest as
    little as $100!

  • You do not have to live in the state to
    invest in their tax liens. States that
Conclusion: Tax Lien Certificates Are An
Excellent Investment
Page 89 of 89


     sell tax liens offer them to virtually
     anyone, anywhere.

  • Even if you miss out on a state’s
    scheduled tax sale auction(s), you can
    still invest in their counties’ leftover
    liens and find some great bargains.

Most importantly, tax liens are by far one of
the most powerful and safe investments you can
make, because you will get a guaranteed return
on your investment that is backed by the
government itself. You can’t say the same for
the stock market where so many people have lost
millions of dollars. Making money on tax liens
is not a game of luck as it is in the stock
market. With tax liens, you know the exact
interest rate your investment will make in a
relatively short period of time.

And, remember, tax liens from the government is
a real opportunity that many people all over
the United States are doing and earning lots of
money doing it. This report is simply intended
to give you the facts you need to quickly
figure out the ins and outs of tax lien
investing so that you don’t have to spend hours
of research figuring it out yourself. If you
follow the guidelines in this comprehensive
report, you will be well on your way to earning
safe, high-interest, low-risk investment
returns.

				
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