Stock market investors are quickly finding out that the returns on tax liens and tax deeds consistently blow away the returns of stocks and bonds. With the market in a black hole, many savvy investors are seeking the safety of the guaranteed rate of return that tax liens offer.
You can safely make up to 50% return on your money.
Here are the 7 questions that you need to ask before investing in tax liens and tax deeds around the country.
1. Why is tax lien and tax deed investing so important to building the wealth?
In order to build wealth and stay ahead of inflation, you must invest in vehicles that will give you double and triple digit returns on your investment.
Tax liens are one of the few investing strategies that allow you to team up with the government to get guaranteed double digit returns. The returns that you can collect from tax liens are not tied to the stock or real estate markets.
So even when those markets are down, you can still be assured that you will receive your state regulated returns.
Tax deed investing allows you to make a more substantial return than tax liens. You can actually get up to 500% returns when you properly invest in deeds.
Many sophisticated investors use a self directed IRA to purchase their liens and deeds. If you are using a Roth account, your investments can generate tax-free profits for life. One of the true wealth maximizer’s is compound interest.
The Roth IRA allows your investments to grow expeditiously because of the compound interest.
2. What exactly are tax liens, and why hasn’t my broker told me about them?
A tax lien is a claim or encumbrance on a piece of property. This lien is placed on real estate to insure that the property taxes will be paid. The tax lien is attached to the property.
There are several types of liens, but for our purposes, we will only concentrate on property tax liens. The local municipality will then sell a tax lien certificate (if it’s a lien state) to investors.
Once you purchase a lien certificate, you do not own the property. You own the claim (interest) in the property. The tax lien would then become a senior lien. It would even supersede the mortgage.
Regardless of when your lien was recorded, it would go straight to the top of the list. This is the best place to be in when it comes to getting paid.
Your broker won’t get paid for telling you this information!!
3. How can I use tax liens and tax deeds to recover my stock market losses?
One way to use liens and deeds to recover from stock market losses is to purchase the tax liens inside of an self directed IRA. You can transfer your money from your traditional IRA to a self directed IRA without any penalties.
If you already have an IRA with a traditional brokerage company, it will be simple for you to transfer it to the self directed company of your choice. This will allow you to purchase you to stay ahead of inflation.
If you purchased tax liens in a state like Illinois, you will receive a 36% return on your money. The interest rate is paid out at 18% every six months.
You can also become a wholesaler of tax liens. It isn’t too much different than “flipping” houses once you master the concept. You can be known as the “go to ” person in your town by passing on great high return deals to your colleagues.
4. What if I can’t buy tax liens and tax deeds in my state?
If you can’t purchase tax liens in your state, you can learn how to buy them in other states. The great thing about tax liens is that you can buy them from any tax lien state that you choose.
Keep in mind that you do not have to travel to the state where you choose to purchase your tax liens. This can all be done from the comfort of your home.
Simply contact any tax lien state’s tax collector office, and they can direct you to their tax lien certificate information. Most states have tax lien certificate information on line.
5. What are the road blocks that are stopping me from investing in tax liens?
The only road block that is stopping you from purchasing tax liens is you. It’s not your fault. Good tax lien information is not circulating in the market place.
Once you know better, you are supposed to do better. As long as you have the proper education, you will do just fine in tax lien and tax deed investing.
6. What are some common tax lien investment strategies?
Some great strategies are wholesaling, buy discounted liens, and contacting property owners who have tax liens on properties and asking them if they are interested in selling the property.
7. How do I get started investing in tax liens today?
That is the best question that you have asked today. You will always have to ways of doing something new. The first way is to do it yourself.
This way always leads to mistakes and lost money. Ninety nine percent of the time the lost money will be yours.
or
You can seek help from someone who is actively doing the business and become their apprentice. There really isn’t any reason to do this on your own and make that mistakes that we both know that you will make.
I will be glad to talk to you about setting up your new business as a tax lien investor.
Make sure that you stop by www.taxliengoldmine.com and join our mailing list. You will be pleased with the information you will receive.
As always,
Keep God 1st, Invest in people
CL Jones
Filed under: tax lien secrets Tagged: | 401k, fairfield county reia, finance, florida land sale, florida waterfront properties, foreclosures, hard money, ira, jack bosch, land for sale, money, private money, real estate investing, self directed ira, stock market alternative, tax deeds, tax liens, tiger woods, wholesale properties