Owning a house can be very rewarding. Most especially if you consider it a home. You have liked the house the first time you saw it. You have imagined the upgrades and improvements to transform it into your dream home. However, it can become a nightmare when ownership of the property is put into question. There are reasons for you to lose it and one of these is due to tax lien.
Tax Lien Investing Homework and Research
Do you know that each county has their own regulations and procedures when it comes to tax lien investing? This also covers the interests and redemption period. Interest rates differ from each other. The number of days for redemption period varies too. It all depends on what county the property belongs to.
If you are interested in a particular property, it would be best to do your homework prior to purchasing. Research if it is located in a rural or urban area. Check for exterior damages and if possible, interior as well. Also, don’t forget to set a budget.
Find Investment Properties with These Ways
There are so many ways to find properties for return of investment. The most common is to find the owner directly and make a cash offer. Most of these homeowners have properties that are owned by the bank or lender that they want to get rid off at a discount because they can no longer make the payments. You can also buy tax lien certificates on the properties so that you’d be able to foreclose it yourself. Here are some of the ways to find investment properties:
- Short Sales – Banks often take less than the amount being owed on the property in order to save from the hassle of foreclosing and reselling.
- REO’s – Properties under foreclosure can be purchased under market if the demand is not that high.
- Lease Options – Purchasing the properties and renting it with the legal right to buy later on.
- For Sale by Owners – Private homeowners advertise the property themselves in a newspaper ad or put up a sign. They do this in order to avoid paying a realtor and sell their properties at a discounted price.
These are just a short list. There are also other ways to find properties that you can invest. Do due diligence and take action as soon as possible.
OTC Tax Lien Pros and Cons
Over The Counter tax liens or commonly called OTC, are the liens which are not sold at the day of the auction and are taken back by the county. Purchasing an OTC tax lien has its pros and cons that you need to be aware of.
Tax Lien Investing Bidding Advices
When it comes to tax lien investing, the bidding process can be quite tricky. It is important to decide how much you’re willing to bid. And once you come up with a budget, stick to it. Keep in mind to set a final amount. Furthermore, make sure that the property is worth the money you’re willing to spend. Plus, do not allow yourself to overbid.
Florida Tax Lien and Online Deed Sales
Tax lien sales in Florida are completed for the year 2017, specifically in June. Cheer up though because there are many online deed sales all year in Florida. Some counties in Florida conduct sales as often as once a week. Also, some of these counties do their sales online.
Pay Taxes to Avoid Federal Tax Lien
A federal tax lien is the government’s legal claim against your property. This happens when you ignore or fail to pay your tax debt to the government. As we all know, the lien protects the interest of the government in all real estate properties, and financial assets.
Homeowners Association Lien
Is there such a thing as a homeowner’s association lien? HOA liens do exist. Homeowners that live in a contracted society are required to pay a periodic fee to the HOA in order to cover maintenance costs for the area. Fees collected are going to be used for basketball courts, tennis courts, clubhouses, swimming pools, and workout gym.
The IRS and Its Tax Collection Powers
The IRS (Internal Revenue Service) is a powerful tax collection organization. Delinquent taxpayers would find themselves in tough situations due to the rough strategies utilized by the IRS to collect taxes. They have the power to levy wages, bank accounts, investments, and even place tax lien on properties.
Getting Started on Real Estate Investing
Looking for a new financial opportunity ? Investing in stocks, bonds, and mutual funds are great ways to make money for the young investor. However, real estate investing has a particular advantage over these traditional investments practices. Why? Investing in real estate grants you, the investor a degree of autonomy that is simply not possible with stocks, bonds, and mutuals funds. Sure, you may be able to control in which stocks you put your money in, but you simply cannot control the volatility of an unpredictable stock market.
