Buying Tax Liens Over the Counter

The unique investing opportunities offered by the United States government's tax deed systems are not exclusive to United States' residents. An over-the-counter system facilitates purchases via the mail, and as technology has evolved, the internet has become yet another option for purchasing tax deeds. No restrictions exist on who can participate in these sales-if you have a registered social security number or tax payer identification number, you can purchase U.S. tax deeds from anywhere in the world. A tax payer identification number is easy to obtain. It is used on the United States tax form W-9, which is required for all independent contractors.

The earning potential as a tax deed investor is astronomical; however, it entails a much larger degree of responsibility than tax lien sales. This is especially true if you live abroad and cannot visit the United States to view the property you are purchasing. Distance investing should not equal blind investing. Now is the time to discover your inner Sherlock Holmes. Contact the counties you may bid in and request whatever free information they can give you. If feasible, have them e-mail or fax inventories, appraisal histories, et al, to you for your review. Make sure that no tax liens will remain active on the property after you have purchased the deed. It's tricky for any new investor to manage real estate, but getting entangled in a legal battle for property that a lien took a percentage off is terribly frustrating. This is the last thing you want to have to manage from across national borders.

U.S. Tax Lien Sales

If you are leery of managing real estate from thousands of miles distance, consider tax lien sales as opposed to tax deed sales. Tax liens seldom end in the acquirement of real estate. The odds are about 1 in 250. Usually the owner redeems the property and you get a check for your investment plus interest. This a great way to build your investing skills and gradually familiarize yourself with real estate entrepreneurship.

Should the opportunity one day arise to travel to the United States, whether for business or recreation, check out a live auction if your schedule allows. This will instill you with a whole new depth of understanding of U.S. tax deed and lien sales, providing you with a diversity of knowledge that cannot be mastered from behind a computer screen. You can also network with other investors-imagine the possibilities of a coalition between you and a local investor. Explore all the rich opportunities of U.S. tax deed and lien auctions and begin your journey to success and wealth as an investor today.

Brent Crouch is the owner of TaxLienProperties.net. He has dedicated this site to providing information on how to purchase tax lien properties for pennies on the dollar.

Article Source: http://www.ArticleBiz.com

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Profiting From Tax Liens

Tax liens are liens placed on a house or other piece of real estate because the owner owes taxes on the property that he cannot pay. There is a potential investment for real estate investors in tax liens. However, there is a lot of competition in this field, so understanding the mechanics of the process is crucial to finding success in this field.

When a homeowner does not pay the property taxes on his property, most counties will place a tax lien on the property. In many states, these tax liens can be sold at auction to investors. The winning bidder receives a state-issued tax lien certificate on the property in return for payment on the winning bid.

After the sale of the tax lien, the investor has to wait for a predetermined redemption period.During the redemption period the homeowner has the chance to repay the lien with interest. This investor that holds the tax lien makes money off of this interest.

If the redemption period ends and the homeowner or someone else has not paid off the tax liens, the lien holder can start the foreclosure process. This could end with the lien holder having the title to the home, or through a tax deed sale, which is similar to a foreclosure auction. The tax lien holder can participate in the sale, or can simply sell the property in return for the principal and interest owed on the tax lien.

Now, there are several ways that you as an average investor can benefit from tax liens. If you choose to educate yourself further about the process, you can start purchasing tax liens and earning off of the interest on them. However, each state handles its tax liens slightly differently, so it is crucial that you carefully review the rules on your state carefully before you begin buying tax liens.

Another way to benefit from tax liens is to purchase properties at tax deed sales. These properties sometimes are available at a deep discount. However, those properties with a high resale value are usually bought before they go to the tax deed sale. Often the properties available at these sales are not the best properties to invest in.

The best way to benefit from tax liens is to purchase the property from the homeowner, giving the homeowner the chance to pay off the mortgage and taxes without going into foreclosure or a tax deed sale. This is the best way to get a good discount on a property that you can then sell for profit. To do this, you will contact the property owner before the foreclosure auction or tax deed sale with an offer for the property. Often if your offer is large enough to allow the homeowner to pay what is owed, you can purchase the property directly. If there is a decent amount of equity in the property, you can then turn it around and sell it for a profit.

In this situation, both you and the homeowner benefit. You, of course, benefit from the profit you make reselling the property. The homeowner, on the other hand, benefits because he does not have to face the foreclosure or tax deed sale process, both of which can greatly damage credit ratings.

About the Author:

Mike Kar is a real estate investor and mentor who has been helping people succeed in real estate investing and offers an infoproduct on real estate investing even if you have bad credit, no credit and no money. Visit http://www.propertyforeclosureprofits.com

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