We’re making some changes here at TaxLienLady.com so that we can serve you better. We’re moving. We are not physically moving our office, but we’re changing the service that we use to communicate with subscribers, take orders, and serve our customers. So bear with us as we move our database.
Here’s how this might affect you…
While we move everything over you may get some extra emails from us, from both our old client management software and the new one. If you receive too many emails from just know that it will only be for a few more days until we change everything over, and delete any duplicate messages. Once we complete this change, you shouldn’t receive any duplicate emails from us.
Or you may inadvertently get removed from our database and you may not get any communication from us. If this happens, all you have to do to get added to our list again is opt in to receive one of our freebies. I recommend our Tax Certificate Sales special report, which was newly updated earlier this year. Or you could opt in to our “Profit From Tax Liens” free video and learn about our Advanced Tax Lien Investing Secrets (ATLIS) training Here.
Either way you’ll get some excellent education about tax lien investing and you’ll get back on our list. We don’t want you to miss any tax lien investing tips, free newsletters, or webinars. If you’re not on our list yet, now is a really good time to join!
If you are having trouble trying to get to a webpage or purchase one of our courses, or if you purchased a course and didn’t receive it right away, it may have something to do with our move. So just let us know and we’ll fix it.
Thanks for your patronage and your patients with us!
Tax Certificate Sales Investing is the name of my special report that I updated earlier this year. This report is FREE and it covers the basics of tax lien investing and also some advanced strategies for making more money on your tax liens and tax deeds without having to attend the tax sale.
The Tax Certificate Sales Investing special report is divided into 2 parts. Part I is titled “What is Tax Lien Investing And How To Get Started: The Truth About Tax Lien Investing” and Part II is “Beyond The Basics of Tax Lien Investing: 7 Strategies to Increase Your Tax Lien Investing Profit.”
I like to buy secondary tax liens as a strategy to profit from tax liens without having to bid at the tax sale and without waiting long redemption periods. I find that this is a better strategy than buying leftover liens from the county, because it’s less time intensive. Why not let someone else do all the heavy lifting for you? But it’s really important to know how to invest in secondary tax liens and/or redeemable deeds so that you avoid the common mistakes that many investors make so that you profit every time.
What’s a secondary tax lien?
A secondary tax lien is a lien that was purchased by another investor at the tax sale. It’s different from an OTC (over the counter) or left-over lien, in that you are not getting it from the county, but from an investor who purchased the lien at the tax sale. You can watch the short quick tip video above to get a better understanding of why an investor would want to sell you their liens. Most counties allow the assignment or sale of a tax lien or redeemable deed from one party to another. Some counties make the process very easy.
The benefits of buying secondary tax liens?
Some investors don’t want to foreclose on the property. They might keep their liens until just before the redemption period is over, hoping that the lien will redeem and they can collect their profit. But they don’t want to come up with the extra money they would have to in order to foreclose on the property. So they are willing to sell their liens that are ready to foreclose. The benefit to the buyer at this point is that they can purchase the lien and start foreclosure right away. The trick to profiting from secondary tax liens, is to buy them right. You want to make money on the liens that you purchase whether you get the property or they redeem sometime during the foreclosure process.
Avoiding Common Mistakes
Most investors will want the full redemption value of the lien or redeemable deed when they sell it. But if you pay the full redemptive value, you will not make any profit if the lien redeems soon afterwards. You will only make a profit if you are able to foreclose on the property. But just because the redemption period is over does not mean that you will be able to foreclose the right of redemption. Redemption can happen any time during the foreclosure process. Sometimes there are foreclosure costs that you do not get back if the lien redeems during the process of foreclosure. So you can actually lose some money if you don’t buy right, or if you buy the wrong liens or redeemable deeds.
I help my students and members of the Tax Lien Profits Accelerator™ to buy secondary tax liens profitably. the important thing is to buy these liens or deeds from someone you trust and to do your due diligence on the property. I provide my members with list of secondary liens for sale from an agent that I trust and I help them to pick the right ones. I’ve made close to 40% in 18 months on one of these liens and one of my students has profited 30% in only 9 months. If you would like some expert help building your profitable tax lien or tax deed portfolio, then you may want to join the Tax Lien Profits Accelerator™.
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Leftovers are NOT good for you! Leftover tax liens, that is, or OTC (over the counter) liens as they are commonly referred to. Here’s why…
I get a lot of questions about leftover tax liens and deeds. These are the liens and deeds that don’t sell at the tax sale. They are the left-overs. There are a few tax lien investing “experts” that have people thinking that leftover tax liens are the way to go. They seem to think that because there is a lot of competition at tax sales, and you can’t always get double digit interest rates when bidding at tax lien sales or get real estate for a fraction of it’s value at a tax deed auction, that it’s better to buy the leftovers or OTC liens directly from the county. Their rationale is that there are so many liens and deeds that are not sold at the sale and made available to purchase directly from the county. These are usually available for purchase without any competitive bidding. The problem is they fail to tell you 2 things. The first is that leave out the part about why these liens or deeds do not sell in the first place and the second is that not all counties have over the counter liens or deeds.
Why I don’t invest in OTC liens or deeds
I am constantly being asked about leftover or OTC liens. People want to know where they can get them. That’s because not all counties sell leftover tax liens or deeds. Some counties will just keep offering them at auction until they sell. But even for the counties that do make over the counter liens or deeds available, it is not strategy that I personal use or recommend to my students.
Some people will claim that there are so many liens or deeds left-over, all you have to do is go to the county and purchase them direct. And then you can get liens without bidding down the interest, or deeds without bidding up the cost of the deed. But even for the counties that sell leftover liens or deeds, this is not a good strategy. Think about it. If the tax sales are so competitive that some gurus are advising people not to bid at the tax sale, what makes you think there is anything good left over. The truth is that almost all of the left-overs are junk properties.
So many times someone comes to me after they have followed someone else’s advice and purchased left-over liens, and they have lost money on their investment. They bought liens on junk properties and now want to sell them, but nobody is buying. Nobody is buying and the liens have not redeemed. So now they need to make a choice, foreclose on worthless property, that they won’t be able to sell or cut their losses. If they only had come to me first, before they bought the liens, I could have prevented them from losing money.
There is a way to invest in OTC liens profitably but it is time consuming and not conducive to the way that most people want to invest. Every once in a while a good property does slip through the cracks, but when that happens it gets grabbed up right away. Investors are waiting for that opportunity. It’s like looking for a needle in a haystack and when you do find it, you have to be ready to pounce and be first in line to purchase that lien or deed. This is not a strategy for new investors, and as I mentioned earlier it is not one that I personally use. I have other strategies that I use to avoid the competition at tax sales and make more money on tax liens. And I share these strategies in my Advanced Tax Lien Investing Secrets (ATLIS) Training. I also still attend live and online tax sales. That is still my preferred way of getting profitable tax liens.
When I started investing in tax liens, I went to the live auctions. But then I discovered that some states have online tax lien sales. That’s right, you can do it from the comfort of your home, or anywhere that you have access to a computer. You don’t need good credit and you don’t need any experience. Anyone with a social security number and U.S. bank account can participate in these tax lien sales.
Maybe you’ve heard all the hype about tax lien investing, You may have heard or seen some of these headlines….
“You can make a fortune investing in tax lien certificates from the comfort of your home”
“Purchase government foreclosed homes for pennies on the dollar from your computer”
“You can invest in highly profitable and extremely safe tax liens and tax deeds from anywhere in the world”
This is what you’ll find from some of the top selling, and very expensive tax lien investing programs on the web. But here’s what these sites don’t tell you:
First, they don’t tell you that every state in the US does not sell tax liens and among those that do, only a handful have tax sales online.
Second, they don’t tell you that you need to do your due diligence before you purchase a tax lien if you want to make sure to collect a profit.
Third, they don’t tell you that each state has different laws and procedures when it comes to tax sales, and they don’t let you know what those procedures are.
But, there are certain things that you need to know in order to invest safely and profitably in the online tax lien sales this October:
You need to know which states have online tax sales and where and when they take place
You need to know what the risks are when buying tax liens online and how to avoid them
You need to know how to do your due diligence on tax sale properties from a distance
The good news is that you can get all this information in the Buying Tax Liens Online home study course. The course is online and once you register, you get all the updates for life. All for one low price. Counties in states that are new to online investing are added to the course all the time. In fact this year we added one county in Missouri and a few counties in Mississippi. This was the first year that either of these states had online tax sales.
Which States Have October Online Tax Lien Sales?
Coming up in October are online tax lien sales in Colorado and New Jersey. Want to know how you can take part in these online auctions? Where to find them, what the procedures are, how to pick the right properties in the sale to bid on, and what to bid so that you make a profit every time? Get the Buying Tax Liens Online home study course and find out!