Thursday, May 9, 2019

The basis of tax lien investment

Do you have a 6% to 50% interest on your return on assets, and what is the protection of real estate property tax liens?

Author Joel S. Moskowitz explains how investors buy little-known tax lien certificates that are rarely profitable in his book "16% of solutions"

As a reward, although the author warns that it rarely happens, investors may take action and foreclosure on the property. However, he warned that owners would usually redeem, so investors must be satisfied with high yields.

What is a certificate of tax lien?

When real estate owners do not pay property taxes, 27 states and 1,152 cities and counties sell tax liens to investors. The government immediately obtained property taxes. Investors buy tax liens and then guarantee them by real estate.

Tax lien certificate yields vary by state law. Arizona's highest tax rate is 16%, Florida's tax rate is as high as 18%, but in Michigan, the second year's tax rate is as high as 50%. If the owner does not redeem the property from the investor by paying the tax refund and high interest rates, the investor gains ownership and possession of the property.

New investors can start small, maybe invest hundreds or thousands of dollars, and then buy more property tax lien certificates. Although not all states are smart enough to provide tax certificates to speed up taxation, after reading this book, they will understand why they should do so.

At the time of this writing, the countries currently providing tax certification include Alabama, Arizona, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Mississippi Missouri, Nebraska, New Hampshire, New Jersey, New York, North Dakota, Oklahoma, Rhode Island, South Carolina, South Dakota, Vermont , West Virginia and Wyoming.

The excellent appendix to this book lists interest rates and state programs. For real estate investors who want to earn high returns without actually managing their property, this new book shows how to do this. It also explains several pitfalls to avoid and how to buy the best certificate with the highest profit opportunity.

According to my 1 to 10 rating, this excellent book is rated 10 stable.




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