Ok, so Shakespeare has no place in tax lien investing. Do you?
If you’re considering making the move from mortgage foreclosure investing to tax lien investing, or if you’re a new investor just wondering how you can make money from tax foreclosure property, you’ll need to answer a few questions to determine if it’s right for you to buy tax liens.
1. Do you have a lot of cash to invest? If the answer is yes, then tax lien investing may be a nice way for you to make a killer interest rate on your investment– but you’ll need to come up with all the cash up front for your winning bid at tax sale. If the answer for you is no, don’t worry; there are other ways for you to invest in tax sale property.
2. Are you a risk taker by nature? Ostensibly, you’re looking to invest in tax liens for the purpose of making a great interest rate on your investment, not with the objective of owning the property. You’re banking on the former owners paying off their liens, which they usually do. If you’re not a risk taker, you may not want to buy tax liens. When the owners don’t pay off, you’re stuck with a property that may have some real problems.
3. Are you interested in owning tax foreclosure property (as opposed to just a lien on it)? If so, then you’ll want to explore other avenues that are more appropriate for that endeavor. As stated in #2, usually tax lien investors are looking for a great interest rate, not a property to own. You’ll rarely end up with a property if you buy tax liens– and if you do, it will be one you won’t have been able to inspect beforehand. There are better ways of getting tax foreclosure property than tax lien investing.
4. Are you a patient person? Tax lien investing can be a very long-term proposition. In some states, owners have five years to come forward and pay off their liens. That’s a long time to wait, for just about anyone.
If your answers to the above four questions were less than favorable, you may want to explore a different method of acquiring tax property. It’s really quite simple: purchase tax foreclosure property directly from the delinquent owners! If you catch them at the right time in the foreclosure process, you are virtually guaranteed to be able to strike up a deal with them to purchase their property, since if they don’t sell at some point, they will lose everything to the government.
Frequently, these tax delinquent owners have already resigned themselves walking away from their tax burden. This is a unique subset of sellers that are ready to practically (and sometimes, actually) give away their deeds, just to see them go to someone other than the government. If you strike while the iron is hot, you’ll be amazed at the deals you can get from tax delinquent owners.
This little-known method of investing in tax foreclosure properties is known as “deed grabbing” amongst the small number of real estate investors that practice it. It’s not difficult to do, and best of all, there’s very little competition in this field. Due to the current economic climate, there are more tax foreclosures than ever before, and this will likely continue for some time.
Click through to http://deed-grabber.com.
No comments:
Post a Comment