Each one of us has an idea about property taxes. Whether you’re a homeowner or an investor, we know for sure that the government collects taxes from property owners to fund the needs and services for the common good of the greater number of people. This is in addition to income and sales tax.
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.
Financially Secured Tax Lien Investment
Interest rates for tax lien vary from county to county. You can earn as much as 36% interest rate for the tax lien certificate you’re going to win in a public sale. The property owner is given a chance to get back his property via the redemption period. He must pay the back taxes and the penalties for his property.
Types of Tax Lien Properties Investment
Did you know that there are three types of foreclosure property investing? It is tax lien, tax deed, and redeemable deeds. These three are different to each other which affects on how investors make their decisions.
Which is the better investment: tax lien certificate or tax deed sale?
It has been said that investing in stock and shares, money market and jewelries, specially gold and diamond are good investment as their values continue to rise. But one undeniable fact is that the real estate business seems to outpace all present investment portfolios. One obvious reason is the ever growing global population that people tend to focus more and more on better living conditions over and above anything this world can offer.
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.
Flipping houses: Is it better than the buy-and-hold strategy?
The question of whether flipping or buying and holding is the best real estate investment strategy does not have one correct answer. Rather, the decision to choose one method over another should be part of an explicit strategic plan that takes the investor’s overall investment goals, as well as the opportunities presented by the existing market, into account. Read on to find out which investment strategy will edge out the others in your situation.
Tax Deed Sales Smart Choice for Property Investment
Tax deed sales allow the government to assist in generating lost income from properties in which the owners failed to pay back taxes. Buying a deed from one of the delinquent properties doesn’t only help the government but also provides a wise investment for a buyer. Familiarizing with the sale process is highly advisable before the auction. You can readily get information about these because it’s considered public information.
The Attractive Investment of Tax Lien Certificates
Tax liens are actually certificates of the purchase you get at a tax sale auction. This certificate records your ownership of the tax lien. The amazing rights which come with the certificate make it an attractive investment for investors.
Researching To Minimize the Risk…
Today I wanted to talk to you a bit of minimizing the risk of investing, and do this by research.
Tax Deeds are a great investment if you’re really expecting high return of investments in little to no time time.
