Did you know that you can profit from your tax lien without waiting out the redemption period? You can sell your lien to another investor. It’s known as an assignment and most counties allow you to assign your lien to someone else. Here’s how it works in states where the lien or deed is recorded in the county records….

You find a buyer for your lien and decide on a price. My recommendation is to sell it at the redemption value. Next you will have to determine a date for the sale to take place in order to get the right redemption value for that date. You may have to contact the tax collector or county treasurer (who ever was responsible for selling you the lien or deed). Let them know that you are assigning the lien, and ask them for the redemption value for the date of the assignment.

Write up an assignment contract that lists all the particulars about the tax lien, as well as who the seller is (you) and who the buyer of the tax lien or redeemable deed is. You will also need a place for a notary to witness and sign the document as well as a place for your signature as the assignor. You’ll want to keep the contract to one page, because it will have to be recorded in the county records. You can also ask the tax collector or county treasurer if they have an assignment contract template you can use.

The Benefits of Group Coaching

One of the benefits of tax lien coaching in a small group is that you get to meet other investors who are building their tax lien or tax deed portfolios. Recently after one of our group coaching sessions, one coaching client sold 2 of her liens to another new coaching client who was just starting to build his portfolio. And in our most recent coaching session I went over the assignment contract, exactly what needs to be in it, how to fill it out, and exactly what steps both the seller and the purchaser need to take. We also went over what you need to track for you liens or redeemable tax deeds.

All of our coaching sessions our recorded for coaching clients to watch at their convenience and we have 2 of these group sessions each month for coaching clients. That’s just one of the many benefits of Get Profitable Tax Liens Coaching. You can find out more about coaching with me at www.GetProfitableTaxLiens.com.

 

Interested in the Arizona tax sale results from this year’s tax sales?

Why were there so many bids at zero percent?

There are only two reasons that I could think of and that’s what I discussed in this week’s Investing For Success Saturday audio message. That and what online tax sales are coming up in the next few weeks. There are deed sales, lien sales and even redeemable deed sales coming up online all over the country. And I think I mentioned all of the states or at least most of the states that have online tax sales in the coming weeks.

Listen to the audio to find out more about the Arizona tax sale results and about what tax sales are coming up around the country.

And if you want to find out how to work with me to find the best place for you to invest and get access to the tools, resources, and education to help you succeed in buying profitable tax liens or tax deeds…Then fill in the form at https://taxlienlady.com/mentoring-application.

Do you want to have Tax Sale Success?

Many are now aware or have heard that investing in tax liens can yield high single digit or double digit returns on your money. At least you can double or triple what you can get in a bank CD. So why aren’t more people investing in tax liens?

There are 2 reasons why I believe that investors, once they find out about tax lien investing, don’t get involved. The first is that they just don’t know how. They don’t know where and when to find these tax lien auctions and how to register and bid at these sales. They don’t know how to get started.

But the biggest thing that holds people back from investing in tax liens is that they don’t know how to choose the right properties to bid on. They are afraid that they’ll lose money if they buy liens on properties that don’t have much value and won’t redeem. They’re afraid that they’ll get stuck with a property they don’t want.

They know that it’s important to do their due diligence on tax sale properties, but they don’t know how. Most people think that tax sale success starts with researching the properties and picking the right properties to bid on. But that is not where you need to start in order to be a successful tax lien investor.

Tax Sale Success Starts With This

You have to start by picking the right tax sale to bid at in the first place. Here’s why…

Some tax sales just aren’t worth going to. Either there is not enough good parcels in the tax sale, or the bidding is so competitive that it’s impossible to get a good deal. Or in some cases the procedures or rules for the tax sale make it hard for the investor to make money. This can happen when extra fees are charged by the county or the online bidding platform that conducts the sale.

The best way to start is by thoroughly reviewing the tax sale procedures, terms and conditions, so that you know the rights and responsibilities of the investor. It’s also really helpful to review the results of previous tax sales for the auction that you plan on bidding in. That way you can look for patterns such as:

• What has the ratio of bidders to properties in the sale been in past tax sales
• What is the average interest rate bid on for the type of properties that you want to bid on
• If premium is bid, what was the average LTV (loan to value)
• How many bidders typically bid on the type of property you’re interested in

You might want to look for property types that were not bid as competitively and had less bidders.

Here’s What To Look For…

I like to target tax sales that are in out of the way places, not near major cities where everyone wants to live and property values are high. At the same time, I don’t want to invest in depressed areas where property values are extremely low. I look for a sweet spot where I’m far enough from major cities but not too far from jobs and property values are good but not too high.

I also look at the amount of tax liens or redeemable deeds that are n the sale. If I’m going to a tax sale that I have to attend live. I’m looking for a sale that all of the institutional investors might pass up because they don’t have any big liens in the sale, or don’t have enough properties in the sale. If I’m bidding at an online tax sale I want to make target tax sales that have a bigger inventory.

Have Questions?

If you have questions about how to pick the right tax sale to bid at, or how to find out what tax sales are coming up around the country and which are the better ones to invest in, then check out my Tax Sale Success Workshop.