Here’s a new video that I created and I’d like to get your feedback on it. I wanted to show it to you first before I posted it on YouTube. The video starts out with some reasons why you might want to invest in tax liens and goes into my background and how I got started. From there it goes over some of the basics of tax lien investing. I hope you enjoy it, and that you learn something that you didn’t already know. Let me know what you think of it or if you have any questions about it in comment box below.
The Truth About Tax Lien Investing
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By Brian Templeton December 15, 2010 - 11:33 pm
Joanne,
Thank you for your advice re:- Texas, I was a little hazy on how much
of one’s investment the penalty applied to.
Brian.
By Joanne December 16, 2010 - 7:28 am
Your Welcome Brian,
Darius Barazandeh has a real good program on Texas if you’d like to get all the details on investing in Texas. You can find out more about it at http://www.TaxLienLady.com/texastaxdeed.htm
By Brian Templeton December 12, 2010 - 4:44 am
Joanne,
A pretty good explaination of tax lien certificate proceedure, but you
do not indicate those states that place “hurdles” in the way of small
investers. Illinois, for example requires lengthy pre-auction registration times plus a heavy fee to register. Or Texas, where the
“redeemable” tax deed is more like a tax lien certificate, because
most are redeemed within the six month period (for residential properties) if the 25% penalty is applied only for the due taxes on the property or on the total money bid to get the tax deed. As I have
read that considerable “over-bidding” is necessary to buy a Texas tax
deed. Two states that I am interested in.
By Joanne December 15, 2010 - 11:21 am
Hi Brian,
Many states do have registration deadlines days and sometimes weeks before the tax sale. But that is not a deterrent to investing, you simply need to know the rules ahead of time, which is why I have my courses. The 2 states that you mention are 2 states with the highest return. The default rate in Illinois is 18% per six months, which is 36% per annum, although that gets bid down at the sale. The penalty in Texas is 20%, it is a penalty not an interest rate, so you get 20% on your money if the deed redeems in one week or in 6 months, Not bad. Yes the deed gets bid up at the tax sale, but you get the penalty on the full amount that you bid, not just on the minimum bid amount. And unlike a tax lien, you don’t have to foreclose the lien. When the redemption period is over the property is yours, also you can take possession of the property as soon as you record the deed (right after the tax sale).
There are always “hurdles” to overcome but you did pick 2 of the best states to invest in. Let me know of your progress.