I get a lot of questions? from people who are in financial difficulty and they want to know if tax lien or tax deed investing is the answer to their problems. Some of these people are young, in their 40’s with a mortgage, young children, and they have a failing business or they have lost their job, and they want to know how soon they can replace their income with tax lien investing, and can they really get houses for “pennies on the dollar.” Others are retired or closer to retirement (in their 50’s or 60’s) and they’ve lost most of the money in their 401(k) and want to know how long it will take to make up for lost time with tax lien investing if they move all of the money in their 401(k) into a self-directed IRA and start investing in tax liens. Most of these people have already purchased someone else’s course on tax lien or tax deed investing but still haven’t made any money yet, and don’t know if it’s really possible. It’s amazing how many people find me after they spend a lot of money with someone else, and then expect me to answer their questions. So if this describes you, let me save you some time and answer your questions before you ask them. Even better yet, let me answer your questions before you spend any money learning about tax lien or tax deed investing.
First of all, can you still buy houses for “pennies on the dollar?” The answer is, yes you can in some tax deed states. But think about it: Pennies on the dollar means that you can buy a $300,000 property for around $30,000. Do you have that much money that you don’t need to live on or to keep in an emergency fund? People forget that this is an investment, not a get rich quick scheme especially today when real estate is not selling quickly.
If I were in one of the situations that I previously described, I would not depend on tax deed investing or tax lien investing to bail me out. The truth is that you are not likely to get a house from a tax lien, you will make a nice profit on your money, but to live on 18% interest on your investment you’d have to have at least $250,000 invested. You can get a house for pennies on the dollar by buying a tax deed, but I’ve already discussed the reality of that.Don’t get me wrong, now is a great time to get involved in tax liens and tax deeds. Now is actually a great time to buy real estate any way you can – if you have the cash, but not if what you need right now is steady income.
I’ve been in a similar situation. My husband was self-employed when our three children were young and at times we had no money coming in. This is way before I got involved with tax lien investing, or any investing for that matter. We were not even saving any money, we were barely surviving. What turned it around for us? My husband finally got a job and did his business on the side. We were finally able to pay our bills and start to get out of debt once we had a steady income and benefits.
I don’t have the time to go into too much detail here, and I know this is probably not what you want to hear, but I have an obligation to tell the truth and help people, not just sell my courses. Back then, I blamed my husband for our money problems, but the truth was it was my fault as much as it was his. I blamed him for not realizing that his business was not making enough money to pay the bills and we were getting behind,and were in danger of loosing our home, and that he needed to go to work for someone else. But I was also self-employed as a personal trainer and I could have just as easily gotten a full time job at a gym or corporation, but I wanted to stay home with our young children. I also just had my third c-section. I did go to work part time as soon as I could.
What I later came to realize is that my financial condition was a result of my actions and thoughts for the years prior to this. When we had money coming in we didn’t save it. We spent all that we had saved on our first home (a condo). We closed on our condo and had a our first child just 2 years after we got married, and 2 weeks later, my husband lost his job. The bottom fell out of the housing market (back in 1990) – pretty similar to conditions today. My husband had difficulty finding another job in a business that was connected to the housing market (He was a salesman for a construction equipment dealer), so he went into business for himself as a used construction equipment broker. Our finances were up and down – mostly down, throughout the next few years.
So how did I get from there to where I am today? Remember this is before I even knew about tax lien investing. I changed. I was determined to get my finances under control, and get out of debt. I studied everything I could about personal finance, debt reduction, and wealth building. But nothing really changed until I changed myself, my attitude, especially my attitude about money. The more I worked on myself the better things got. And one thing that helped me feel good about myself through this time (besides my faith) was that I had a hobby that I was good at, something that I could do that made me feel good about myself even when things were going bad. (I also had a supportive family).
So just a word of advise if you are going through some financial difficulties right now – strengthen your relationships, friendships and family ties. Pay attention to hobbies that you enjoy and that don’t cost a lot of money, and spend some time on your spiritual development. It all might seem like it has nothing to do with your financial well being but I can tell you that it does, at least it did for me.
One more thing, regardless of what financial experts say, you have to save money even while you’re paying down debt. Otherwise you can get all of your debts paid off and still have nothing to show for it except maybe some available credit. And that will get you right back to where you started if you have one little set back, like an unforeseen trip to the hospital or your car breaks down and needs to be fixed.
Can you identify with my experience? If you can, leave a comment at the end of this article.
By the way, I am not a financial advisor, real estate professional, or an attorney. I’m just an average investor, just like you, so my advice is no substitute for the advice of a professional. If you need financial or legal advice seek out a legal or financial professional in your state.
By Charles December 22, 2010 - 10:15 pm
Joanne,
I would like to thank you for taking time out of your busy schedule a couple of months ago to talk tax liens with me. I hadn’t bought your course or spent any money with you, but just the same you answered some important questions I had. I went on to invest almost 40K in liens in August in MS, and I am receiving checks monthly. A bittersweet thing to occur. Every check I receive makes me feel better about my investment, but then again once they pay off that lien I am no longer making interest. I plan on continuing to invest in liens until I can do this as a full time profession. Joanne, thank you for your time and help.
Charles
By Joanne December 23, 2010 - 8:48 am
Hi Charles,
Thanks for sharing about your success! I’m happy that I was able to help you.
It just goes to show that tax liens are a great way to invest. The more you can invest, the more you can make, inside or outside of a retirement account.
What it’s not is a way to get rich overnight, or a way to get real estate for pennies on the dollar. Not that you can’t do that, but it’s not likely with liens and even if you can do it, it can take years.
Keep it up and let me know of your progress!
By Joanne December 21, 2010 - 11:36 pm
Hi Ed,
Not sure which e-books you are referring to. The free video course with the special report is at http://www.taxlienlady.com/freevideos. You can find links to my courses on the products and services tabs on my web site at http://www.taxlienlady.com.
By ed harshmn December 21, 2010 - 8:22 pm
where is the link for the e-books you mentioned???
By juan calero December 20, 2010 - 10:22 pm
Dear Joanne.
I think you program and your help is very valuable.
Could you please let me know, if i can subscribe with you, in order to get, the tax deed lists, from you, the ones from states you will recomend to invest in? my mail is calerosaldivar@gmail.com
I am looking forward to invest in tax deeds with your help, many thansk. juan calero.
By Joanne December 21, 2010 - 12:11 pm
Hi Juan,
I have many courses in my members area as well as a tools and resources to help you in your tax lien investing, including TaxLienLady-database, which gives you the links and information that you need for the tax sales in every state, and the tax sale lists. Soon we will be providing enhanced lists as well. Also included with your membership is a monthly training with me and a one time 30 minute private consultation.
You can find out more about the members area at http://www.TaxLienLady.com/Membership.htm.
By Joanne December 20, 2010 - 2:43 pm
Rizwan,
My members area has all the tools and resources that you need plus you get a free 30 minute consultation with me when you join. It’s $49.95 per month and includes a monthly training with me and you can cancel at any time. Find out more at http://www.taxlienlady.com/Membership.htm.
I have other courses, but I really think that is the Members Area is the most value for your money.
By Joanne December 20, 2010 - 2:40 pm
Thanks so much Jesus, Leah, and MNibec for your kind words.
And for Terry and others who don’t have any money right now to invest in tax liens but want to get started, consider using the money in your IRA or 401(k). You will not be able to use the profits, it will have to back into your retirement account, but it is a way that you can start building to have a better future now. You may have to roll over money in your 401(k) or IRA into a true self-directed account, but it’s worth it to be able to control that money and not have someone else tell you what you can and can’t invest in.
In the meantime keep saving as much as you can into an online savings account – they give the highest interest and your not as likely to use the money when you can’t get to it right away. A couple of good accounts with no fees and no minimum are IngDirect and Ally.
By Jesus December 20, 2010 - 1:45 pm
Greg follow with Joanne Musa because most of what I learn was free send by her and every location and county works different and she is so honest that I live in Texas and she email me recommending me to buy Darius course where she could made a easy cash with me and she didn’t. Thanks Joanne for your free support God Bless You and your family and Merry Christmas.
By mnibec December 20, 2010 - 12:11 am
Thank you so much Joanne for the straight talk. What you say is true.
By rizwan December 19, 2010 - 7:31 am
Joanne- I meant that payment would be upon achievement of results and from the profits made. But I gather your answer is a no as you say that you will need paying for the time you put in. How many hours minimum would that be and what you expect for that? Also what has been your success rate to date both for yourself and others?
By Terry December 18, 2010 - 7:29 pm
Joanne,
Im new here,I found your web site and like what I read.I like the way
you told the story about your hardship in life.Shows to me you are honest about what you do.I am on total disibility.I drove semis for years,now I do not have two pennies to rub together.I have attended several tax lien webneers by John Lane.His prices are to high for my pocket book.I am not looking to get rich,just want to survive.Im trying to get all the information on tax liens before I jump in head first.Right now I just need to find away to make the extra cash to invest in tax liens.I am willing to do what it takes to achive this goal.So Joanne any advice you have for me will not fall on deaf ears.Im willing to do my due diligence .
Again,
Thank You Joanne
By Leah December 18, 2010 - 6:40 pm
Greg.I understand where you are comming from. You will find Joan’s teaching to be very practical and I would encourage you to get on board to become a member @ $49.95 per month subscription and you will find it is a worthwhile investment and you will be glad you joined. Check it out for yourself. Yes Joan does answer your emails and her support team are very helpful. Yes she will take you by yourhand but you do your part and commit to taking action where neccesary. I have found Joan to be a jewel. Don’t worry she hasn’t paid me to say this but credit must be given where it is due. You can also have a free consultation for 30 minutes, I think, when you become a member and they will prompt you to set up the appointment for the one on one. I have a lot of respect for Joan and what she does. You wont be disappointed.
By rizwan December 18, 2010 - 10:39 am
I too feel the same way as Greg, having spent thousands on courses with very little to show for them except for tired old manuals. It is true we can have the information but we still need the courage or motivation to have a go and this usually becomes easier with someone who you can trust will hold your hands right through the process and especially if things go wrong. I now ask anyone who wants to sell me a course, a simple question, I would be willing to pay them double or even treble what they are asking for upfront, but only once the results of following their course manuals with their hands on support is realized. I find this approach sorts the wheat out from the chaff and ensures that I make a profit first before I pay out. What is your view of this approach Joanne?
By Joanne December 18, 2010 - 5:00 pm
Rizwan,
Are you saying that you will pay upfront or only after results are realized? You seemed to be contraticting yourself and I don’t know which you mean. You say that you would pay double or triple upfront, but only after results are realized. Which is it, upfront or after results are realized?
The problem that I have with this is that I would not ask someone to pay double or triple the price that someone else is paying, because I would give the same support to all of my customers. Secondly this is exactly why I stopped investing for someone else. If I do the work, whether it is in teaching and training you or doing the due diligence and bidding at the tax sale, I would have to get paid for the work I put in, but I cannot guarrantee that I (or you) will be able to purchase a lien – that depends on the competition and somewhat on you.
By kathy December 18, 2010 - 9:09 am
Greg, There is a lot of free information both on the internet and in books/ audio books that you can either buy or if you are on a limited budget probably get within your library system. It’s good to read different view points, evaluate and pick the method that makes the most sense to you. Keep educating yourself. Investing can be risky but less so if you learn everything you can and use money that you have specifically set aside for that particular endeavor. I feel it is important to set goals and take baby steps toward them. I am very conservative and personally do not believe in taking out loans unless you are buying a cash producing asset. Some books that I’ve read that you may find interesting are: The Richest Man in Babylon by George S. Clason, Think and Grow Rich by Napolean Hill, Put more cash in your pocket by Loral Langemeier, The one minute millionaire by Mark Victor Hansen and Robert G. Allen, Your Money Ratios by Charles Farrell, A Million Bucks by 30 by Alan Corey, Increase your financial IQ by Robert Kiyosaki, The top 10 distinctions between millionaires and the middle class by Keith Cameron Smith. So study, determine where you are and where you want to be then write down your goals and your ten year plan to achieve them. Evaluate monthly and tweak.
By Joanne December 18, 2010 - 4:44 pm
Great Advice Kathy, I’m familiar with some of those books myself, I think that I’ve read most of Loral Langemeier’s and all of Rober Kiyosaki’s earlier books, plus I have the One Minute Millionaire, among others by Robert Allen. I found one of the books you mentioned as free ebooks: Think and Grow Rich by Napoleon Hill. And I found two more as free e-books that I’d like to add to the list: As a Man Thinketh, by James Allen and The Science of Getting Rich by Wallace Wattles. These three are timeless classes and I’ve purchased the resell rights so that I can give them away to you from my site. You can download them at:
http://www.taxlienlady.com/ebooks/Think_And_Grow_Rich.pdf
http://www.taxlienlady.com/ebooks/AsAManThinketh.pdf
http://www.taxlienlady.com/ebooks/TheScienceofGettingRich.pdf
Enjoy and Happy Holidays,
Joanne
By kathy December 18, 2010 - 8:41 am
I think everyone goes through a crazy money period at least once in their life. It would be really nice if money management were taught in schools. Maybe a semester course where young people read and study books of the different money management philosophies to be able to choose the one that makes the most sense to them. Personally one of the methods I have a lot of fun with is the jar method where everyday you put a dollar into 4 different jars; saving, investing, donating and fun. (I added the fun jar because I like to have fun.)
By Linda Conklin December 17, 2010 - 11:59 pm
Joanne Thanks for your insight,very familiar circumstances.We have to look within ourself first to see the faults and bad choices we placed upon ourselves,and accept the bad choices we made and see where we failed,we can then make better choices, with more thought and effort.
em at godsheavenlyangels4u@yahoo.com
As for Greg, and im not saying this to be mean but if your having bad luck with your lein investing,dont you feel that it would be better to choose another type of investing rather than continue and still be disatisfied?
By Joanne December 18, 2010 - 12:16 am
Hi Linda,
thanks for your comment, I know that my situation turned around faster when I started working on more on myself and my spirituality and less on my financial situation. I think that there is something to be said for the law of attraction and our attitude about money. Many of us have the wrong attitude. On the one hand we want to be rich and on the other we criticize those who have the wealth we want. Things really changed for me when I began to express gratitude every day for everything I did have and then I began to realize that I really was wealthy. I had my health, my family, good friends, a good marriage, good kids (most of the time), and a home that I owned. And yes I began to see that my financial situation was a result of poor choices that I made in the past and I started to make better choices. I’m still learning and growing in this area.
By Greg December 17, 2010 - 11:40 pm
Thank you for your reply. I will give it thought. I will say I have spent thousands on trying to find the “right” business and thought tax liens would be it. Perhaps after I work with you, I will become a believer.
Greg
By Joanne December 18, 2010 - 12:22 am
Greg,
tax liens may or may not be the answer for you. Tax Lien Investing is not a get rich quick scheme it’s an investment. I will have another blog tomorrow about a way to make money quickly with a small initial investment, but that may not be for you either. There may be other things that you have to work on, or you may have other talents that you can turn into cash. I think that if you have already spent a lot of money on learning how to invest in tax liens and you haven’t made any money at it yet, then it’s probably not for you. You can find out by going through my free video course. You can sign up for the free course at http://www.taxlienlady.com/freevideos.
By Joanne December 17, 2010 - 11:29 pm
Hi Greg,
I do answer questions from my subscribers, unlike some of the other people out there who sell their courses for hundreds or even thousands of dollars, but do not respond to e-mails are unreachable by phone, even to their customers. That is what makes me stand apart from the rest.
If you have only spent $65 dollars here and $35 there, and got nowhere as a result, consider yourself one of the fortunate ones. The blog post that you commented on was actually in response to a gentleman who spent $1000 here and $800 there (with someone else) and still did not know if he could buy houses for pennies on the dollar and if it was the answer to his problems.
You see that the answer I gave did not help me sell more tax lien investing courses, but it is my mission to help people and tell the truth, I am not just in business to make money, that is a side benefit of what I do.
I will promise you this, that you will get more informaition from me for free than what most other marketers charge for and that you will get step-by-step instruction in my courses and not just hype and fluff. That is the difference. I also do not have a $3000 or more coaching program that I will try to upgrade you to, my most expensive and comprehensive course is $497.00 and my members area has all of the tools that you need to invest (including tax sale lists) for $49.95 per month.
I also have a complete course that shows you how to buy tax liens online for only $97.00. But I cannot promise that you will make 6-12% on your money. That is really up to you. It’s what you do with the information that I provide that makes the difference. So much is dependant on where you invest and your motivation.
By Greg December 17, 2010 - 11:08 pm
Dear Joanne:
You have been sending me emails for probably two years now. I have not responded because basically I have become a skeptic in tax lien profits.
I have a paid a lot of money for tax lists, read lots of articles,want me to spend thousands for books etc. but in the end I am out $65 here, $35 there, and I never make a profit. Everyone just wants to sell me something.
If you or someone else would actually teach specific knowledge and techniques that will earn me 6-12%, I would be happy and would pay for that service. But what I see are a bunch of Lien experts pedaling a bunch of B.S. that gets me NOTHING but frustrated, and their pockets are lined with my cash. If you are really different then take the time and write me. If not, please take me off your mailing list.
By internet radio December 17, 2010 - 3:33 pm
How should I invest my money to make more money in a short amount of time?
By Joanne December 17, 2010 - 3:42 pm
How fast do you want to make money? My friend Bob Domico makes faster money with tax liens by purchasing left-over liens from the county (or municipality) and selling them to other investors. He turns them over right away for a fast profit. It still can take at few months before you see a profit.
By Marnie Pehrson December 17, 2010 - 9:46 am
Been there, done that… got the t-shirt. Great article, Joanne, and your advice is right on the money! Thanks for sharing your story and being honest with people … even when it may not be what they want to hear.
By Joanne December 17, 2010 - 3:37 pm
Thanks Marnie, I thought that you would enjoy reading this post because it tells a little about my story.