What’s Better Than Tax Sale Overages?

Posted on November 18, 2011 by Joanne

This past year there has been a couple of new courses released on how to get finder’s fees for tax sale averages. It just seems that the economy is ripe for this strategy, with more people losing their homes to tax sales. But did you know that tax sale overages aren’t the only overages that you can profit from? Mortgage foreclosure overages are an even better source of income.

Why is are mortgage foreclosure overages even better than tax sale overages?

First of all you’re providing a real service to people who have just lost their home in a foreclosure. You’re getting them their money and you’re advancing them a portion of their overage so that they are able to move before being evicted from their home. You are saving them the stress and embarrassment of being evicted.

Secondly, you are totally honest with them right from the beginning, letting them know about the overage that they can apply for and letting them know just exactly what your recovery service will cost them. So you are actually providing a much needed service, and not just profiting from their misfortune.

You can learn all about how this strategy works on a special webinar that I’ll be hosting with Joe Kaiser on Wednesday, November 30 at 9pm Eastern time. You can register or find out more about it at www.TaxLienLady.com/WebinarTraining.

Unlike getting finders fees for tax sale overages, this strategy does require?some cash up front. But Joe tells you how to get investors so that you don’t have to use your own cash. He also tells you step by step how to make this strategy work and how he hires people to get all of his leads for him at only $35 per week! He lets you know what due diligence you need to do to insure your success.

Register for this webinar now for free at www.TaxLienLady.com/WebinarTraining

 

Posted in Excess Proceeds, Webinar | Tagged , , , , | Comments Off on What’s Better Than Tax Sale Overages?

Tax Lien Investing: Time Verses Money

Posted on November 15, 2011 by Joanne

When it comes to your tax lien investing what is it that you have more of – time or money?

Have money but no time?

Some investors have plenty of money to invest in tax lien certificates and/or tax deeds, but they don’t have the time to do the due diligence and bid at the tax sales. If you’re short on time but you have a substantial amount of money to invest then you might want to use a tax lien agent or a tax lien investing fund to do the work for you.

Agents and fund manager are experts at purchasing and managing profitable tax liens and tax deeds for their clients. They have a competitive edge that as an individual investor, you don’t have, and they have a better chance of getting profitable liens than you do. By using a tax lien agent or investing in a tax lien fund you don’t just take care of your problem of not having enough time to do the work; you also manage to be more competitive. This also solves the problem of having to travel if you don’t live in the state that you want to invest in. For instance if you live in California, which is a deed state but you want to invest in tax liens, that could be a problem if you’re doing it yourself.

Got the time but not much money?

If you don’t have a big chunk of money to invest, but you have some time to do the work, you can start investing in tax liens with as little as $500. You just need to be able to have the time to go to tax sales and to do the due diligence necessary to ensure that you buy profitable tax liens. You can make decent profits with small tax liens; it will just take you longer to get enough money invested to where you are seeing decent redemption checks.

When I started investing back in 2002 I purchased one of my first small liens, it was a utility lien just under $500. In some states delinquent utilities owed to the town or county are sold at tax sales. This lien was for sewer charges and each year thereafter I was able to pay the subsequent sewer charges. The mortgage company paid the taxes, but the owners of the property never paid the sewer charges. Since in this state a tax lien does not expire for 20 years, I let this go on for a few years. Finally in 2011 – 9 years after I first purchased the lien, I forced redemption by sending a pre-foreclosure letter to the property owner and lien holders.

The mortgage company paid off the lien to the tune of over $7,201.74. Now this was not all profit, I had paid in $3919.56 over the course of 6 years (I made my last payment in 2008 and then did nothing for 3 years), $3282.18 was profit from interest and penalties. I almost doubled my money in 9 years starting with less than $500 and investing a total of under $4000 over 6 years, and then waiting 3 more years to collect my interest – you just can’t do that in the bank!

Posted in Tax Lien Agents, Tax Lien Investing | Tagged , , , , | 4 Comments

Free Webinar: How To Profit From Excess Funding

Posted on November 15, 2011 by Joanne

Wednesday, November 30 at 9pm Eastern, I, Joanne Musa of TaxLienLady.com will host a free webinar with mortgage foreclosure overage expert, Joe Kaiser, on ?How to Profit from Excess Funding.?

With this new strategy that Joe will be teaching, you don?t have to contact any government agencies for lists or make any kind of public records requests, there?s no competition, and you get paid immediately,

Find out just what this strategy is and how it works on Wednesday November 30th. A replay of the webinar will be provided to everyone who registers for the live call. You can get more information or register at www.TaxLienLady.com/WebinarTraining.

Posted in real estate investing, special interest, Webinar | Tagged , , | Comments Off on Free Webinar: How To Profit From Excess Funding

Hidden Tax Sale Cash Or Tax Sale Overages: Which One?s For You?

Posted on November 10, 2011 by Joanne

I?ve been getting a lot of questions recently on two different strategies for investing in tax delinquent properties. Both of these strategies involve tax sale overages. And with both strategies you avoid having to bid at the tax sale.

The first strategy for Hidden Tax Sale Cash, involves contacting the owners of tax delinquent properties and making them a very small offer for their property. The idea is that they may already be consigned to the fact that they are going to lose their property to the tax sale, and will be willing to let someone else take it off their hands for little consideration. Once you have the property, you record the deed so that you are the owner of record when the property goes to tax sale. You let the property go to tax sale. Instead of paying the back taxes and keeping the property (which you could do if you really wanted to keep the property), you do nothing and let the property go the tax sale auction. After the tax sale, as the owner of record when the property was sold, you apply for the tax sale overage. This strategy works very well in deed states where the bidding is very competitive. You can register for a free training about this strategy at http://TaxLienLady.com/taxsalecash.

The second strategy for collecting finder?s fees for tax sale overages involves locating people that are owed excess proceeds from tax sales. In essence you are acting as an agent for the former property owner with the county. Once you locate someone who is owed money from a tax sale overage, you call them and negotiate a commission for getting them their money. This strategy only works in deed states that allow an agent to collect money for the owner of record. Some states will not allow you to do this unless you have a special license or unless you are a lawyer representing the person who is owed the money. ?You can find out more about this strategy for making money from tax delinquent properties at https://taxlieninvestingtips.com/blog/?p=1074.

Posted in Excess Proceeds, special interest | Tagged , , , , | Comments Off on Hidden Tax Sale Cash Or Tax Sale Overages: Which One?s For You?

How To Beat The Competition At Tax Sales

Posted on November 7, 2011 by Joanne

How Can You Beat the Competition at Tax Sales?

If you’ve been to any tax sales lately, online or offline, you know that the competition is pretty stiff and that the institutional buyers are making it more difficult for the individual investors to win any good liens. Remember the old saying “if you can’t beat ’em, join ’em?” One way that you can beat the competition from fund companies at the tax lien sales is instead of bidding against the big companies — join one.

The Fund Advantage

The bigger players have a huge advantage over the little investor, especially at the online auctions. Some of the online auctions allow bidders to have sub-accounts. But you must have a tax ID number for each sub-account. That means that these huge funds can use the social security numbers of all of their members and have hundreds, or even thousands of bids on one property. If there are many bids all at the same lowest percentage bid, the winner is chosen randomly. By having a number of bids in at the lowest rate they are willing to accept, the institutional buyers increase their chances of winning the bid – especially compared to the individual investor who doesn’t have any sub-accounts. So instead of competing with these companies, why not give one of them your money and share in the profits?

That is essentially what you do when you buy shares of tax lien investing fund. The problem though, with the larger tax lien investing funds is twofold. First they usually have a very large minimum investment $50,000 – $100,000, and secondly, their management fees can also be quite large, thus cutting into your rate of return.

 Private Investment Funds

Four years ago I stumbled onto a private tax lien investing Fund Company. This company is small enough that it doesn’t have a huge minimum investment or inflated fees. But they do have a proven track record. I started investing with them in 2008 and then I investing in another one of their funds in 2010. And I’ve been recommending them to my members and tax lien coaching clients. They have a new fund offering around once a year.

Each new fund is capped at 2.5 million dollars. That means that once they reach that amount the fund will be closed to any new investors. But that’s not all, there is also a closing date for the fund, even if they don’t reach their maximum capital investment amount, the manager will close the fund to new investors on after the fund closing date.

It has a total investment horizon of 5-6 years with targeted double digit annualized returns over the life cycle of the fund. There are a limited number of unaccredited investors spots (35) available on a first come, first served basis once the fund is opened.

Members of Tax Lien Lady’s Members Area are the first to find out when a new fund is open. If you would like to find out more about Tax Lien Lady’s Members Area and the other advantages to joining, go to www.TaxLienLady.com/MembershipMain.htm.

Posted in Tax Lien Investing | Tagged , , | 6 Comments