The Internal Revenue Service has methods to ensure that they get their money from tax delinquent citizens. One of them is the federal tax lien. This is their legal way of claiming property when a homeowner fails to pay his tax debt to the government.
Tax Lien Certificates Bid and Win Online
Is it possible to invest in tax lien certificates even if you are a foreigner who lives outside of the United States? Yes you can, and join the bidding via online auctions. Through it, you can make double digit returns on your money with tax liens.
Strategize and Plan Ahead Before Tax Lien Auctions
Investment in real estate is trending nowadays. As a result, property investors focus on tax lien auctions. But not all investors are lucky enough to win a property at the sale because of not doing enough research and due diligence.
Methods that Choose Tax Lien Sales Winners
Tax lien sales or auctions are the traditional method of getting lien certificates. However, with the popularity of the internet, some states conduct online auctions that reach a wider scope of property investors. Tax lien sales are usually held once a year in separate counties. So, it is a good idea for you to do your due diligence on the schedule of the sale for the county you’d like to attend to and the properties you’re interested.
Get Assistance from Tax Lien Real Estate Expert
It can be quite complicated when getting involved in a tax lien investing plan, if you have not dealt similar transactions before. The process may be long and time may be wasted by going through all the smallest details. In order to speed things up, a real estate expert can help you achieve your goal.
Tax Lien Title Search for Your Dream Home
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.
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.
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.
