Earning double digit returns or more on your tax liens or redeemable tax deeds may seem like an unattainable or “far away” goal. I’m hoping this article will inspire you, and show you that you really can do it.
The two big ingredients besides the start up cash you need to hit any investment goal are time and knowledge (know how).
Knowledge so you know the rules and procedures to follow that will make you money, while avoiding pitfalls and mistakes that could cost you money or time. There a couple of ways to gain the knowledge you need to profit from tax liens and redeemable tax deeds. You could learn from the school of hard knocks – just jump in, start doing it and learn from mistakes that you make along the way. This is what I did, And I can tell you that it’s costly.
Or you could save time and money by learning from someone who’s been there and done that. Someone like me. Why me? Because I have a reputation of telling the truth, not what people want to hear. I’m told all the time by people who come to me for training, that they trust me over all the people that they find online. Hence the tagline on my website, www.Taxlienlady.com, “America’s Most Trusted Authority And Coach in Tax Lien Investing.”
I’ve got a 7-step system that I use and that I coach others to use to profit from investing in tax liens and redeemable tax deeds which I am about to share with you:
Step 1: Pick the right place to invest in tax liens or redeemable tax deeds
Every state has different laws and procedures regarding tax sales. What worked in one state may not work very well in other areas or other states. You need to pick the best place for YOU to invest, based on where you live, how much money you have to invest, and whether you’re investing for your retirement or the near future.
Step 2: Get the tax sale information
The first thing that you want to do once you decide where you’re going to invest, is to find out when and where the tax sales are. So how do you find out about tax sales? I do a search each month for my members, coaching clients, and students, to find out what tax sales are coming up around the country. And I give them access to tools that I use to do custom nationwide searches for tax sale information.
Step 3: Do your due diligence on the tax sale properties
Researching the tax sale properties to find the right ones to bid on, based on your goals, is the most important step in the process. Doing this properly or not could mean the difference between being extremely profitable and losing money on your investment.
Step 4: Prepare to bid at the auction
Preparing to go to the sale includes registering to bid at the sale (which may include a deposit) and making sure that you have all your paperwork in order and submitted on time. And you’ll need to have the right form of payment for any successful bids. You also want to make sure that you pay for any successful bids on time, or you will lose your deposit and be barred from future sales.
Step 5: Show up and bid
It’s important to know what the bidding procedure is and what your bidding strategy is before you bid at a tax sale. You’ll have to decide beforehand just how much you are willing to pay for each property that you want to bid on, or how low (in interest) you will bid.
Step 6: Protect your investment
Once you purchase a tax lien certificate or tax deed, there are steps to take to protect your investment and maximize your profit. Depending on whether you are investing in liens or deeds and which state you are investing in, these steps may include recording your lien or deed with the county clerk, paying subsequent taxes, and clearing the title to the property.
Step 7: Cash in on your investment
This is the step where you make money. Up to now, you’ve been investing your money, but this is the step where you cash in and make your profit. To make your money on a tax deed property, you can sell, develop or rent the property. There are also three ways that you can profit from your tax lien certificate. The property owner could redeem your lien, in which case you will get your initial investment back plus interest and penalties. If the lien does not redeem during the redemption period, you can foreclose on the lien, and in some states take ownership of the property. The third way that you can profit from a tax lien is by “assigning” your lien or selling it to another investor.
That’s it! Just seven steps to bring in profit from investment in tax liens or redeemable deeds. You can do it in weeks, months, a year or ten years depending on your knowledge and where you choose to invest. I hope this is helpful!
You can get a little more information on each one of these steps in my FREE easy to read special report: 7 Steps to Building Your Profitable Tax Lien Portfolio.
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