Why would you want to use a tax lien investing agent instead of investing in tax liens on your own? After all tax lien investing is a safe way to earn double-digit interest on your money without the risk of the markets, right? And isn?t it ?government guaranteed?? And isn?t it easy enough to do that you don?t need a broker to do it for you, you don?t even need good credit, so why would you want to give your money to someone else to invest for you and then have to pay fees?
Tax lien investing is a safe way to earn double-digit returns on your money as long as you invest in only good properties. If you buy a tax lien on a junk property and then you foreclose on it, who will buy it from you and how will you get your money out of it? It really bothers me when other tax lien experts use the term ?government guaranteed,? since no one guarantees that you will get paid on a tax lien. It is the real estate that you have a lien against that is your guarantee. What they mean when they use that term is that the county or municipality that issues the tax lien certificate guarantees the interest rate that you get ? but they do not guarantee you payment.
So how do you protect yourself so that you invest in only ?good? liens? One way to do this is to learn everything you can about investing in the areas that you plan to invest in. Another way to do that is to invest through a tax lien investing agent or a tax lien investing fund. If you find an agent or fund manager that has a good track record then you?ve found someone who is an expert at tax lien investing. They know what to look for and they know what to avoid. They know which states and counties are more profitable and have less competition. They know the ins and outs of tax lien investing.
If you?re sitting on the fence about getting involved with tax lien investing and it?s something that you?ve wanted to do, but you don?t where to start, a tax lien investing agent or tax lien fund might be the answer for you. With an agent or a fund you can invest inside or outside your self-directed IRA. And if you?re not sure how to set a self-directed IRA to invest with, they can help. Because they do a lot of business with IRA custodians they can usually connect you with a custodian who can set you up with an account right away.
Using a tax lien agent or investing through a fund is ideal for you if you don?t have the time to do due diligence or bid at the tax sale. They will take care of everything, getting the tax lists, doing due diligence, bidding at the tax sale, and managing your portfolio. But what should you look for when choosing a tax lien agent? That is one of the questions that Don Fullman answered on our complementary webinar “Double Digit Returns Without Work Part II.” You can?listen to the webinar recording and all of the resources from the call at ?www.TaxLienLady.com/PIPWest
?2010 Tax Lien Consulting LLC. All Rights Reserved. Any use of this article without the express permission of the author is a violation of copyright law.
Follow Us!