Both Tax Liens and Tax Deeds are basically unpaid taxes of delinquent properties resulting in public auctions. That could be the main reason why buyers or first time investors find too confusing. To be more specific, both the tax lien and the tax deed sales are initiated once a homeowner neglects or fails to pay the taxes imposed on the property. The local government authority, either the municipality or the county will then decide whether to pursue a tax lien or a tax deed. If it chooses the tax lien route, the resulting lien is auctioned off to an eventual buyer who in turn is entitled to collect the back taxes from the owner plus interest and penalty. On the other hand, Tax deeds are auctioned once a homeowner appears incapable of paying the back taxes on his property. Here the buyer or investor has direct claim to the property. To give more clarity these are the glaring differences:
Common Mistakes Investors Make in Tax Lien Investing
Investing in tax lien is quite complicated and also expensive sometimes, especially for first time investors. Complicated because you may be investing on some useless tax lien certificates or worthless tax deeds. And, could also be expensive if you have been enticed to enroll in some special seminar or course on tax lien investing charging exorbitant fees.
Where are the Online Tax Deed Sales?
Finding online tax deed sales is like looking for the proverbial needle in a haystack. More so, if you are a first time tax deed buyer. Maybe, some good steps but will definitely dent you pocketbook, is paying for coaching, going to high-priced seminars or buying their courses. But after going through all these bright forums, you might end up with a few hundred dollars leftover of your investment money.
Tax Lien Investment: The Best and Fastest Way to Make Money
More people today find it easy to invest on tax lien certificates than tax deeds. Especially for small and new investors who don’t have to spend thousands of dollars to start. Unlike investing in tax deeds where you need a bigger capital since you are practically buying the property. With tax lien certificates you only bid for the delinquent tax and subsequently purchased the delinquent or unpaid tax on the lien property. Tax lien certificates are sold during tax sales conducted by a county or municipality. Sales are usually held at least once a year. Counties with very large population hold tax sales quarterly or even monthly to collect enough money for their expenditures.
Grow Your Retirement Account With Tax Lien Certificates
Most people don’t realize that you can even use your retirement account to purchase these tax lien certificates where you can grow your retirement with profit rates of 8% to 36% mandated by United States law.
There Are More Tax Lien Certificates Available Than Investors To Buy Them
Unsold tax lien certificates are transferred back to the government and available on a first come first serve basis (no auction).
In many states, you can buy these government-owned tax lien certificates year round through the mail or the Internet. You can even walk into the government offices and purchase them over-the-counter.
Tax Lien Certificates Are Secured By Real Estate
As the owner of a tax lien certificate, you have a first lien position on the property.This means the property owner cannot sell, refinance, get a second mortgage or home equity loan until you receive the amount you paid to satisfy the back taxes PLUS high interest.
Tax Lien Certificates Pay Double Digit Interest Rates
To encourage tax-delinquent property owners to pay their past-due taxes, the government charges them interest and/or penalties (think of it like a late fee), which is passed directly to the investor….that’s you!
Secondary Tax Liens Offer Better Business Opportunities
We have written a number of articles on TAX LIEN investing for the past weeks but a vast area of its ins and outs still remain unexplored. One of these is the SECONDARY TAX LIEN.
What You Need To Know About Redeemable Tax Deed
For potential investors and first-time buyers planning to buy delinquent properties on auction, here are some important things you have to consider before buying a piece of property. Terra International Realty will explain as simply as possible how and what you need to know about redeemable tax deed.
