You really want to start investing tax liens and tax deeds, and you have $6,000 (or less) to invest – which should you choose, tax liens or tax deeds?
With only $6000 to invest you should tax liens over tax deeds for sure! Here’s Why:
You need at least $5000 for some of the online tax lien sales including the Arizona tax sales which are coming up in February. Many of the online tax sales require a deposit and some of them have a minimum deposit of $500, but this is considered to be 10% of your budget. So they will let you win bids as long as you stay in your budget, and the minimum budget (based on the minimum bid) is $5000. So you need to have at least $5000 in order to participate in the tax sale and this money needs to be in the same account that your deposit came from. I do have a course to help you with buying tax liens online.
Want to find out more about Buying Tax Liens Online? Get the course at www.BuyingTaxLiensOnline.com.
What’s the difference between a tax deed and a tax lien, And why should you choose tax liens if you have $6000 or less to invest?
When you invest in a tax lien, you are not purchasing a property – you are paying someone’s property taxes and putting a lien on their property. Tax tax liens can usually be purchased with less money than tax deeds. When you purchase a tax deed you are buying the property, and the amount of the deed is bid up at the tax sale. You need a considerable more money to purchase a tax deed than to purchase a tax lien. Also, with tax deeds you frequently need more money to do repairs to the property, remember that this property was probably neglected for a while – or even vacant for while before it went to tax sale.
Want to know more about the difference between tax deeds, tax liens, and redeemable tax deeds? Or want to know what happens in each state and find out how to choose where to invest and get the tax sale information? Get the Tax Lien Investing Basics course at www.TaxLienInvestingBasics.com.
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