Where to kind the tax lien list.

A. Newspaper.
B. The Court House. (Posted in the hall way in our area)
C. A week before the sale the tax office will have the list.
The Sunday paper has a listed (under public notice) of all properties that is for sale for next month. They
list the properties a least 3 time in the paper per month it our area it is on Sunday. The county court house has a list of all property that will be at the sale. Each property will have a case number An Example:

17,794-B
Smith County vs Annie Rose
241st Judical District, Smith County

At the court house your need to go to the record room and give them the name example Annie Rose. Then you can find out where the property is and if they have any other judgements on the property.

If the property is not in the News paper then. Get a new list a week before the sale of the property
that will be in the sale at your tax office (where you pay your property Taxes). Each listing will have the open bids, account numbers, case number. The account number will help you find the location of the property.

Look up the property on the map at The Appraisal District, court house and somethime your tax office where you pay your property Taxes will have the maps to the property. to see if that is what you want to bid on. Go to the land and check it out too. A title company can look up any property for you. They do change a fee.

At the sale. if the property is not bid on it will be on next month struck off list. The big saving is in the relisting of past struck off properties. Pennies on the dollar. Property that was not bid on last time it was up for auction. Will be sold at almost upto 25% to 90% off the property value.

You tax office has a list of all struck off proprerty from months past. The tax office and/or Appraisal District has all the maps there. The court house will have all the plats. In our area they have cabinet and slides at the court house. For example cabinet D, Slide 267-B Or book and page. The book and page. The book and page is reference to cabinet and slides. Once you win a bid you have until 5:00 to pay for the
property. (money order or cashier check.) If the property has improvements on it (like a house)
or it is a homestead you have to hold it for 2 years. If it is land you have to wait 6 months. The owner could come back and get the property. (If they do have they will refund your money.) If you have
improved on the property you loss that. (IN TEXAS) Check your own state on that.

STRUCK OFF LIST
Get a new struck off list a week after the sale is over. They could mail you one. Every month just send them $1 and they will mail you the list.

You can bid on these properties with a sealed bid you mail or drop it by the tax office. It must
be in by the last day of the month. (In our area) You must pay with money order or cashier check.
and it must be sent with your bid sheet (The tax office has the bid sheet to). If the property is over 6 month you can bid 75% of the open bid. If it is over 2 years you can bid 50% in most cases you will get the win the bid. But before you send in a sealed bid check out the property. If you bid to low the tax office will send you money order or cashier check back to you. You then can send a higher bid or just cash the check. (I get my money order from the post office.)

You county may have the maps online like we do in our county. Smith county Texas. Check with your Appraisal District. Smith County Appraisal District maps http://www.smithcad.org/
You can download the maps and then use account number Example 1-50000-0664-00-021000 in our area it is an 18 digit number. The account number will be in the ads, bid sheets and struck
off list.

Real estate man told me his wife became rich off tax lien property.
YOU CAN TOO!

Good Luck
Howard Rose

PS If you have any question about tax liens feel free to e-mail
me. mlmer58@aol.com

PSS If you don't have this tape GO OVER TO AMAZON.COM AND
ORDER RICH DAD POOR DAD BY ROBERT KLYOSAKI ON TAPE.
This tape will keep you on track.

HERE is more about tax liens and my stories

I Just started buying tax liens property and it is great. We had a change to buy a lot that is selling for $4,000 to $12,000 per lot. It sold for $350.00, but we did not. We have the change to buy 1 acre for $350.00 that had a value of $2,000 but we did not. At the time we was just learning the system.
WE DID buy 2 lots for $5,000 for both that is selling for $7,500 per lot after the sale we went on the 2 lots they are ready with 2 sewer systems and water a meter already there. We can sell these lots for $10,000 each.

Howard Rose
GREAT LUCK

You Can Laugh At Money Worries If You Just Follow My Simple Plan For Buying Real Estate For 4¢ To 10¢ On The Dollar Ted Thomas, Tax Lien King Real Estate Investors have been "quietly" doubling their money every 4.4 years, for over 20 years, with little or no risk
© 1999 Ted Thomas

FACT: Angela Mirabito of Jacksonville, Florida made over $40,000 in less than 45 days by following these simple strategies.

FACT: Documented with Affidavits! Janice Knetzger of Clear Lake, California purchased a Tax Deed in Michigan for only $422. Janice sold that property for $64,928.

Dear Friend:
In this letter you'll discover a low risk method to turn a few hundred dollars into thousands. No attorney, no real estate broker will tell you how to buy real estate for 4¢ to 10¢ on the dollar... But isn't that what you want to know?!.. I WILL Tell You How! READ ON!... In the next few minutes I'm going to show you how to make your dreams come true as I reveal what no other ever would. I'm going to show you how to buy single-family homes, apartments, office buildings, and residential lots ­ all for the unheard of price of 4¢ to 10¢ on the dollar. Sure you are skeptical ­ that show's you have common sense. I'm going to
give you proof positive, written in black and white. Everything I'm about to tell you in this letter is documented with affidavits on file and better than that ­ your money is protected by the property tax code.
I've shown thousands before you. These are proven methods that have worked for others and will work for you. All you have to do is get involved in the learning process. Make Huge Profits On Small Or Large
Investments... Take Your Pick Lee Lineberger of Millegeville, Georgia bought a fully developed
residential lot, with access to a beautiful lake, which had a government assessment value of more than $5,000, and he paid at the Tax Defaulted Auction, only pennies on the dollar ­ $262.64. My calculator says that's 5¢ on the dollar! A short time later Lee sold that residential lot for a WHOPPING $4,900. That's the kind of profits that buy new cars and nice homes very quickly. Think about that... $262.64 to purchase a value of $5,000. With that kind of money hitting his bank account, you can see why
Lee owns over 90 properties. In this great country there are over 3,300 local counties. About half of
those counties sell Tax Liens and the remaining counties sell Tax Deeds. You're probably asking yourself, "What's the difference?" ...I'll get to that in a moment, but for now you need to understand that in the Tax Deed states the Ex-Officio Sheriff, or the Tax Collector auctions the real estate property for the back taxes to the highest bidder. Huge Profits For Solving The Government's Problem That's Right! The government auctions the property to collect the back taxes. If the property owner neglects to pay as scheduled, the local government will be short of funds to pay for schools, to fix roads, pay
fire and police departments ­ they all will be short of budgeted funds...

And to make up for that short-fall, the government conducts a Tax Defaulted Sale. The local county actions the property to the highest bidder. That bidder could be you! It's Like Winning The Lottery!
The real estate is sold for the back taxes to the highest bidder. You can buy the property for pennies on the dollar. Just imagine for a moment how your life would change if you started buying real estate at a 90% discount. You may be thinking to yourself that this is impossible... And I understand your skepticism. Allow me a few minutes to give your proof, in writing, that this really works. Create So Much Wealth You'll Never Have To Worry About Money Again! Craig Talkington is an insurance man in Tulsa, Oklahoma.

Just like many of us, Craig has a family to support, a mortgage commitment, and car payments to make every month. Recently, on a part-time basis, Craig started buying Tax Lien Certificates for only a few dollars. Like most people, Craig doesn't like to take big risks, so he started small. He purchased a Tax Lien Certificate and the property owner never showed up to pay the back taxes. According to the law, the owner of the Tax Lien Certificate now becomes the new owner, because the property owner forfeited the property by not paying the taxes! WOW!! What a deal! But that's how the law works.

Now comes the exciting part!... Craig paid only $44.99 ­ that's about what you'd spend to take your family to dinner at Denny's... The point I'm trying to make is, anyone can afford to do this! That $44.99 bought Craig three acres of agricultural land. A short time later he put a tiny classified ad in the newspaper and resold that property for $3,500. If you like percentages, that's 7,779% return on his money. (Kinda kicks the banks' generous 4.375 long-term CD rate in the butt, doesn't it?) No Risk The best part of this example is Craig had little or no risk, because if he didn't get paid for the Tax Lien, at an outrageous 15%, 25%, or even 50% ­ he gets the property. It's almost like winning the lottery. You could do the same thing if you knew how... And in just a few moments, I'm going to show you how!

You may be thinking this is an isolated example. Let me assure you that there are thousands, hundreds of thousands of Tax Liens and Tax Deeds available across this great country. For example 10,000 available annually in Phoenix, Arizona, and 3,000 available in Key West, Florida. 6,000 advertised in Des Moines, Iowa. I could go on and on! I hope you see how knowing this information will improve your lifestyle! Let Me Tell You...

These deals are in your own backyard, and wealthy investors, who have inside knowledge, have been getting $5,000 - $10,000 ­ even $50,000 and more on individual deals for decades. Naturally, they have kept this information quiet... not wanting anyone else to have the chance to cash in big on these lucrative opportunities. For Pennies On The Dollar!

Impossible?!?... Think again! 4 acres came up at the Tax Lien Sale in Craig's neighborhood. At the auction Craig paid $17 and got the certificate. A few months later he sold that property to another neighbor for $4,000! That's ½ of 1¢ on the dollar!!! Don't worry ­ other people are going to tell you that you can't do this. Don't listen to them. Act in your own self-interest. Your success in any endeavor begins with having the right mindset and information. Your attitude must be that if other have become successful, you can too! Why not?

I'll reveal the secrets, and there will be logical steps to take. But you must take them ­ that's something I can't do for you. It's your responsibility to take action. Create The Income You Need For Life
Ron Hibbard earned his degree at Ohio State. He soon learned that as a professional school teacher it was going to be a tough financial road for him. Working part-time in real estate during summer break, he earned more money than in 9 months of teaching school. A short time later at the... Tax Defaulted Auction
Ron Hibbard bought a single family home, a 3 bedroom, 2 bath house located in a bread and butter neighborhood. The government assessed value was $52,000. No one showed up at the Tax Defaulted auction to bid against Ron, and the judge awarded him the Deed which gave him full ownership for just the minimum bid, which was 3 years back taxes of $4,612.45. A short time later Ron sold that house for a profit of $38,000. That's a lot of money that you could be enjoying! He made enough money to pay off all his credit cads, buy a new car for cash, and still have money for that 2nd honeymoon cruise in the Gulf of México. I hope you can visualize how knowing these formerly secret strategies is going to change your life and make you a lot more financially secure.

If you've ever invested in real estate, or ever wanted to, you know... These are SPECTACULAR Returns! This is the angle you've always dreamed about!!! I've Discovered What Is Undoubtedly The Best Kept Secret In America!

Unfortunately, there's a lot of negativity around from other people, and sometimes from within ourselves! Again and again you'll hear, "You can't..." "You can't..." "You can't do that!" "Who do you think you are?" "Uncle Ralph new all about real estate, and he never talked about tax deeds..."
Please! Don't listen to them!

Do any of these armchair critics have any plan that WILL offer you financial independence in short order? What do these people know?

IMPORTANT QUESTION #1: How much Money have these people made?

IMPORTANT QUESTION #2: If you are determined that you will make a lot of money, who should you listen to? I'm not blowing smoke up your tail! I've made MILLIONS in a single year!

BUT, GET THIS ­ if I was the only person who had made money off tax liens and tax deeds, you might want to say... "Yeah, but that's just him. He's special." (Of course, I'm not ­ I've just found an incredible angle that will get you rich!) This letter contains dozens of real-life examples of people no different than you or me who are striking it rich! People with a mortgage. People with kids. People with a car payment. All this is backed up in my files ­ most of it with certified documents.

There's a lot of dream stealers. They're on every corner. But you know, the dream realizers don't hang out on street corners, do they?

FACT: If you give in to the dream stealers ­ without investigating at no risk the true facts! ­ YOU are the one who has cheated yourself out of your future! No one else! YOU! Can you live with that? This Is The Perfect Investment ­ You Always Win!
Don't get confused. Some states sell Tax Liens... other states sell Tax Deeds. Bottom Line: You Always Win!
You always get paid big bucks! In the Tax Deed states you will get ownership of the real estate. In the Tax Lien states you can earn up to 50% interest on your investment. Read on... you'll be astonished!
Your 24% Cash Flow Is Fixed By Law! and Guaranteed To Stay High Regardless of What Happens to Bank Rates or The Stock Market! The Millionaire Maker It's called a Tax Lien Certificate. In hundreds of counties throughout the United States, local governments have millions of dollars in outstanding and overdue property taxes, due in full from property owners who will not or cannot pay their property taxes.

To fund the daily services of police, fire, hospitals, welfare, etc., the local governments create and sell these Tax Lien Certificates to investors like you and I. The lien is secured by the real estate it is attached to.

You are not actually buying the real estate ­ your are buying the government's lien on the real estate. In a sense, it's just like a mortgage! Whey you buy a tax lien you are paying someone else's property taxes.
Best of all, your reward is, the government actually gives you the right to receive all of the tax money due ­ including fees, high interest, and penalties. To encourage tax payers to pay their property taxes, the government charges "punitive," sky-high interest rates which are passed directly to the Tax Lien owner ­ you! Under state law, the county sets their own interest rate. It's 20% here in Prince Georges County. The City of Baltimore pays 24%. We are allowed to set our own rate to encourage people to bid on Tax Lien Certificates.Porter Venn, Chief of Treasury Prince Georges County, Maryland Government guaranteed checks of 16%, 18%, 25%...

Up to 50% interest paid directly to you! This Is Your Chance To Make A Fortune With A Government-Controlled Monopoly!

For "safety-first" investors like you and me, these government certificates are the premier investment ­ the absolute best wealth builders of the 21st century. Just imagine receiving continual, high-rate income from the government ­ because Tax Lien Certificates are just like the Municipal Bonds and Treasury Bills... you invest your money with the government and then the government collects the past due taxes, the government sends you a guaranteed government check, paying you back, plus high interest.
Best of all, these government-sponsored certificates are armor-car safe... You don't have to be stuck with lousy C.D. returns the banks and institutions are giving you anymore! Earn More Money From Tax Liens In A Single Year Than You Can From C.D.'s In Four Or Five Years!

In my opinion, brokers and bankers who sell certificates of deposit (also know as "Certificates of Depreciation") and money-market funds as primary, long-term investments should be tarred and feathered. Why? Because you can get 4-6 times as much income from other safe investments. If you can get it, and you invest at 6% ­ it would take you 12 long years to double your investment! In short: as a C.D. holder, you are getting brutalized by taxes and inflation.

You can get Tax Lien Certificates in almost any size ranging from $50.00 to over a million dollars. You could think of Tax Liens as being similar to Certificates of Deposit. Except for one major difference. C.D.'s will never make you rich... but Tax Liens will! Just imagine, being able to earn more money from Tax Liens in 1 year of investing... than you can earn from investing in C.D.' in 4 or 5 years!
You see, the high interest rates on Tax Liens are mandated by state law. They don't rise and fall like the stock market ­ nor are they subject to the whims of bankers that control interest rates.
Look at it this way: the banks have been sticking you with their low rates of return... all the while charging you sky-high interest rates ­ up to 18% or more ­ on your credit cards. Ask yourself, "How much are the banks paying me?" It's just not fair!

In effect, bankers are "renting" your and thousands of retiree's money for 3% to 6% returns... and keeping the 8% to 13% profit for themselves. Aren't you tired and frustrated by the bank's low 3% to 6% C.D. and savings rates?! You don't have to settle for the bankers paying you on their own "less is more" theory anymore!

Now, let's get to the really juicy part: where you can make more money ­ safely and easily ­ than you ever have in your life! I'm going to show you how to create the income you'll need so you'll have the chance to live comfortably for the rest of your life! My name is Steve Siefert and on my first day at the Tax Lien Auction I bought Tax Liens at 16%... that was only days after I purchased your course.

A Wealth of Opportunity Awaits You ­ In Checks That Come From The Government!
You can buy Tax Lien Certificates secured by different properties and in different locations in the same state. And, because there are many well-secured separate certificates for over $10,000 ­ you can quickly invest substantial amounts of money by buying just a few certificates. In short: you could be making huge profits on small or large investments!

No Glass Ceiling For Women! I purchased a Tax Lien in the State of Arizona

for $293 and I sold it for $8,450.Joyce Beck, Alameda, California

That what is great about Tax Lien Certificates: it doesn't matter whether you've got tens of thousands to invest or not! It's the most democratic of investments ­ making everyone rich regardless of where you come from ... or how much you have to invest! In fact, I get notes and letters from my former students all the time. Just look at some of the amazing ­ but all true ­ success stories I hear every day: $19,700 this month...

Craig Talkington of Tulsa Oklahoma sold a 5-acre tract for $20,000. His cost at the tax sale: $300. Last month he sold a 10-acre tract for $4,000 to a neighbor that he paid $17 for at the tax sale! That's $32,700 in two months, working part-time.

Tax Lien buyer Mary Potter of Ft. Myers, Florida purchased a tax lien for just $1,957. She's receiving 17% return on her investment! A Coral Gables couple purchased a Miami tax lien for $5,000 and they are enjoying an 18% return.

These people are no different from you ­ they're just raking in the profits on one of the most lucrative investments of all time! And believe me, if they can do it ­ you can too!
Now don't get carried away... It could seem like I'm advocating a "get-rich-quick" scheme... But I'm not. There's really no such thing in legitimate business. I'm talking about building a respectable enduring business, based on sound and imaginative business practices. Best Of All, You Can Test Drive This Out On Paper, Too!

Like all important things in life ­ this too can be done in a "dry run" to see how you do. All Tax Liens and tax deeds can be thoroughly reviewed prior to purchase. That means you can see the stated, official value ­ and review how much it is expected to be auctioned off for (5¢ on the dollar, for example). You can always "look before you leap" and figure your profit.

Virtually NO RISK... you go in knowing all the angles ­ nothing is left to chance. And that's what makes this investment virtually risk-free: there is nothing that's hidden or "pops up" to surprise you. Just pure, shear profitable returns of 16%, 18%, or even 25% without a single element of risk! Do This By Mail
In fact, you can even purchase Tax Lien Certificates through the mail ­ prior to auction. Talk about getting ahead of the curve! So why aren't all Tax Lien Certificates done through the mail? Surprisingly, no one knows about this. I'll explain that later on in this report.

This can be accomplished by average people ­ no need to have a college degree or hundreds of dollars of investment capital. By using the simple strategies clearly outlined in the guidebook, others have made a fortune with these proven methods. ...You'll be just as successful.

This is the "IDEAL MONEY MACHINE"... and the best part is it takes no experience or special skills whatsoever! My method is so simple, so "Low Tech" anyone can do it, even if you've never made an investment in your life. The Top Secret Wealth-Building Strategy Now Revealed To You Why haven't you heard about Tax Lien Certificates? The answer is simple: stock brokers and bankers aren't allowed to make commissions on them! READ MY LIPS: They don't want you to know about them -- because they can't make any money when you buy them! Even if they are a far better deal for you!!! Then the same bankers and credit unions invest their "surplus" money in Tax Liens so they enjoy the amazing high yields. The stock brokers and bankers pray you won't learn what I'm revealing here. The attorney's know all about this ­ but they're keeping it to themselves!

The ultra-wealthy have been doing this for decades. It's time you started getting your share of the good life and great returns!! How To Become An Insider ­ And Win The Tax Lien Lottery! You're probably asking yourself ­ what's the risk? In my opinion, the biggest risk is the property owner pays you off too early, too quickly ­ and you have to invest the money again! It's incredible!

According to the County Treasurers I've interviewed, 97% of all Tax Lien Certificates pay off in two years. And the other 3%?.. That's your ticket to the ultimate American dream: owning a gorgeous home for just the taxes and a few fees!

In most states... if the property owner doesn't pay the taxes ­ they forfeit the property to you. Congratulations! You've just won the lottery!! In most states you now own the property free and clear of all mortgages and liens. However, state laws differ and a few states allow the property to be sold at auction and the liens to stay on the property.

To make this as risk free as possible, I've created two easy-to-read directories with the name, address, and telephone numbers of the local people to call and get the exact rules for your target area. Keep in mind, you'll get paid from the government when the government collects from the home owner. In Texas, the law requires the homeowner to pay 25% interest, even if the homeowner is only one week late!
The United States is divided into 3,300 separate counties. Approximately half of the counties sell Tax Liens, which are certificates that the government is owed money.

The remaining states sell Tax Deeds to the property. Therefore some states are called "lien states," selling a piece of paper, like a mortgage. The other states, the "deed states," sell a right to ownership. They deed the property owner's real estate to the auction buyer. One opportunity is a cash interest return. The other opportunity is a chance to own real estate for pennies on the dollar! Your ticket to the ultimate American dream... owning a gorgeous home for just the back taxes! Simple, Easy, Fun
"Ted, this is incredible!... At my first auction I earned 16%. That's six times what my bank pays me on passbook savings!"
Jenilee Harrison, Los Angeles, CA A Home To Own Or Sell For Just Pennies On The Dollar!
Throughout history, many of the truly great fortunes have been made in real estate. And that's what makes Tax Lien Certificates so ideal. It doesn't matter whether the real estate market rises or falls, drops or sky-rockets! You've purchased a magnificent home for just a fraction of its original cost ­ just the back taxes... and whatever you can sell it for is all pure, shear profit!!!

Obscene Profits
For those of you looking to make some really serious money, there's no better strategy than buying low, say 4¢ to 10¢ on the dollar. That way you've limited your risk, while setting yourself up to hit some really big home runs! Local Investor Buys Houses For 5¢ on $1
Columbus, Ohio. Ron Hibbard purchased a single family house valued at $55,000.
His purchase prices was only 5¢ on the dollar ­ $2,163! At the Tax Deed Auction.

It's a win-win situation ­ with you on the receiving end of all the good things of life: 16%, 18%... on up to a whopping 50% return on your money; an easy way to double your money in half the time... and home ownership ­ for you to use or to sell, for just pennies on the dollar! Home Ownership For Just
Pennies On The Dollar!

Picture this... You can call the local real estate office, and place your home on the market at 50% below market price. In any market, these are the homes that always sell FAST, because they are such a bargain!! A week, perhaps 2 ­ and you've turned a $2,000 or $3,000 Tax Lien Certificate investment into $40,000 or $50,000 pure profit! Here's What One Client Did...

Mark Novak purchased a single-family home valued at $75,000 for only $16,000... plus back state taxes of $17,000. That's just 60¢ on the dollar! This Could Change Your Life!
Knowing about this program changed my life completely. It brought me wealth, happiness, and, most of all, peace of mind. This program will change your life, too. It will give you everything and will solve your money problems. You don't have to take my word for it.

Here's another 100% verifiable case history!
Danny Smith of Columbus, Ohio has made a business of purchasing at the Tax Deed Auctions. Ohio is a Deed State ­ which means the county will deed (transfer) the property to the highest bidder at the auction. In comparison to the Lien States, where the auctioneer sells the tax lien and gives the bidder the right to collect the lien and ­ if not paid by the homeowner ­ then foreclose and ultimately own the real estate for pennies.

Danny Smith purchased many properties at the Tax Deed Sales. At this writing, Danny has a positive cash flow from his tax deed purchases of more than $10,000 a month!
He purchases for pennies on the dollar and earns thousands of dollars renting the homes to others. In just weeks you could be purchasing properties like these from a simple office in your home.

Danny Smith Buys Houses For Pennies A typical example is 886 Demorest Road in Franklin County, Ohio, sold for $2,727 from the County Treasurer. The assessed value was $67,000.That's only 5¢ on the dollar! His total investment of time was less than 8 hours. That computes to $8,000 per hour!

Another typical example is 1927 Gault Street:
You've Heard About Getting Property For Just The Back Taxes!.. This Is How You Do It! Danny Smith purchased 1927 Gault Street from the County Treasurer for back taxes of $6,112.07. Assessed value: $50,000. 12 Pennies On The Dollar!

More about Tax Lien Certificates
Here are some examples of how to utilize tax lien certificates. The advantage with tax lien certificates is that they are backed by real-estate, so there is little risk.

The government guarantees you the interest or you will have the rights to acquire the property for the back taxes and costs.

It is true that the percentages are against it, as about 97% of the time, the property is redeemed, and you will get your interest, and investment back.

When they are not redeemed is when you could literally get the property for pennies on the dollar.

How much interest can you get? A bunch. Take Illinois, where there is a 16% penalty for 6 month periods, so that is a yield of 36% if paid off in 6 months. If it is redeemed in two months, then the yield would be a whopping 96%. Try to get that from a savings account.

Same with Texas that sells the deed, but has 2 types of redemption periods depending on the property type. A 25% penalty on the winning bid amount, for the 6 month redemption period, which is a 50% yield if paid off the last day, or in the case of the 2 year redemption period, there is a penalty of 50% if it goes more than 1 year.

The penalty States are the best, as you can see. Other States offer a interest PLUS a penalty, so there are many opportunities.

INTRODUCTION TO TAX LIEN INVESTING

We have provided some general and specific information about the industry below. However, one must always do their due-diligence prior to making any investment. Laws, regulations, and statutes change regularly so always consult the latest county and state documents before proceeding.

A tax lien is placed on a piece of real property when the owner of the property becomes delinquent on their property taxes. The county has the ability to sell the lien to raise money they had budgeted to fund their day to day operations. This is important as property taxes can constitute for up to 50% of the counties' revenue.

There would be no real incentive to pay off a tax lien if there were no penalties for not doing so. This is where the investor can benefit. He can collect any penalties or interest levied by the taxing authority.

When delinquent property owners in a tax lien type state become delinquent in paying their property taxes, the county [or taxing unit] will sell off these liens [certificates] to private investors. Upon purchasing a certificate, you are acquiring or buying the rights of the county or taxing unit. These rights of individual investors are set into law by legislation and include the following: 1) The right to collect legal lawful interest. 2) The right to give proper notices to foreclose or bar the right of redemption. 3) The right to obtain a marketable title to property and remove all clouds upon property. 4) The right to obtain possession of property by court eviction. 5) The right to reside, lease, rent or dispose of property at will. The counties or taxing units have superior rights [perpetual lien] over property and these rights are sold to investors. All the above rights are found in each state's state law.

The tax sale process, the tax deed process and the tax foreclosure process are three processes that compose the process of buying, collecting interest and acquiring property in a tax lien type state. These three processes are totally regulated by law as found in each state's codes or statutes.

Causes of Delinquency

Understanding the underlying causes of delinquency is important because they reflect the taxpayer's ability to eventually make payment:

Taxpayers may miss payments simply because a municipality lacks the resources or expertise to effectively service receivables. These taxpayers will typically pay after the introduction of more aggressive servicing techniques, such as the threat of foreclosure.

Taxpayers that skip payments due to short-term financial distress or temporary lack of liquidity are also likely to redeem outstanding liens. When this type of taxpayer lacks necessary funds or faces more insistent creditors, municipal redemption periods of one or two years typically provide sufficient opportunity for the taxpayers to become current. Because tax obligations are relatively small, these taxpayers generally make payments after their more pressing financial difficulties are resolved.

Some commercial property owners and larger taxpayers do possess sufficient resources for payment, but use delinquency as a form of financing. If a jurisdiction delinquency penalties are competitive with the rates charged by regular lenders, a tax lien offers property owners a 'no documentation' loan for the length of the redemption period. 'No documentation loan' delinquencies will realize a high voluntary payment rate, but only as foreclosures become imminent.

Voluntary redemptions are dramatically lower if the underlying property value is less than the sum of outstanding taxes and other claims on the property. Cash flows from this type of property are limited to liquidation proceeds. If foreclosure and liquidation expenses exceed the property's liquidation proceeds, these properties will not generate any cash flow.

How Do I Make Money?

It is a simple procedure. You bid and acquire the lien [the rights of county], then defaulted or delinquent tax property owner has to pay you legal lawful interest from date [day] of sale. This interest must be paid, no exceptions. Interest is paid until property owner redeems your certificate of purchase. If property owner doesn't redeem you, you are entitled to property. The property owner [sometimes pays you directly, as in Georgia] has to pay county and upon surrender of your certificate, the county pays you your bid amount [not on forfeited surplus] plus interest. If interest rate is 18% and redemption is 3 years, and if property owner redeems in 30 months, property owner will owe you 1.5% per month for 30 months or 45% interest. So, if the amount you paid for your bid is $1,000, you will earn $450.

How Much Money Can I Make?

Depending on time of redemption, the bidding system and state law, a tax buyer can earn anywhere from 12%, 14%, 16%, 17%, 18%, 20% and 24% interest the first year by purchasing certificates. Interest earned for the second year can range upwards from 24% to 50%. Each redemption rate of interest can be found in the code or statute of a given tax lien type state. This interest rate is set into law and can only be changed by an act of legislation.

Research

There are varying levels of research required depending on what phase of the tax lien investment you are in. For example it is not practical to conduct mapping research on all properties before a public auction, but you should be familiar with the general location of the properties your are bidding on. If you are buying liens on vacant agricultural land and you are unfamiliar with the area mapping would be prudent. Before filing for a tax deed always map the property as well as drive by and search of public records for government liens.

What Is the Tax Lien Sale Process?

This is a process by which the counties, taxing units, or municipalities sell off their account receivables to individual investors. These account receivables are property taxes due county by property owners. The county has a perpetual lien on the property. When taxes become delinquent and unpaid, a public auction takes place. The county or taxing unit will sell off the amount due county. This amount due county may be two or three of the following or several of the following; such as, taxes, interest, penalties, charges, cost [costs-legal], fieri facias cost, levy cost, administrative fees, certified mail cost, advertising cost, tax deed recording fees, and assessments. Some counties in some states will sell the taxes, interest, and penalties, while others may sell the taxes, interest and cost. An investor never purchases the property at one of these sales. However, if property owner [or interested parties] doesn't redeem investor, investor receives the property free and clear. The amount due is the minimum bid or the minimum amount due to open the sale.

In a state other than a tax lien type state [called a tax deed or auction state], the bid is for the market value of the property as stated in the judgment or the aggregate amount of the judgments against the property.

What are Ground Rules?

Ground rules are handouts, mail outs or information sent to potential investors from county governments outlining the requirements for the sale. Information included in these ground rules, but not limited to the following: time, place and date of sale; deposit requirements, if any; sometimes the interest rate and a few bits and pieces. These ground rules do not teach you how to become a successful tax purchaser, or give you any of the following information, such as, notice requirements, recordation requirements, the bidding systems [how it actually works in that county], how you can be sued by county attorney, contamination, statute of limitations, whether you can or cannot be redeemed by original purchaser. At this time, what the county doesn't give you is too numerous to mention. If you rely on county ground rules, you may wind up in real trouble or in the red. Things you need to know that may cost you your total investment isn't given to you. In fact, some ground rules to be misleading.

Registering to buy tax lien certificates

Procedure varies by county. You must have a social security or tax ID number and complete a W-9 form (W-8 form for foreign individuals or entities). In addition, the county may require their own registration form, listing a contact person and phone number.

Also know as Buyer Number, a bidder number given by the Tax Collector at the time of registration, similar to an account number. In most counties your bidder number stays the same from year to year. You may have more than one bidder number if you want to have two separate portfolios, for example joint account and an individual account.

What is Redemption?

Each state has a redemption period. The period can range anywhere from a few months as in Maryland, to one year in states such as Georgia, South Carolina and West Virginia. However, the redemption period may go as long as four years in states, such as, South Dakota and Wyoming. There are pros and cons as to the advantages and disadvantages of the length of the redemption period. Redemption is the process, whereby, the defaulted property owners [or parties with interest in property] have the right [granted by law] to recover the right or ownership of their property by paying a designated sum before a certain time period expires.

An investor must go for a tax deed at the end of redemption period, or face the possibility of losing investment or right to deed. The true expiration of the redemption period is when property owner has been given the proper notice [and date] that the expiration of period of redemption has expired or will expire on such and such date. For example, in some states a notice will be given before the expiration of redemption period telling the property owner that redemption will expire. While in other states, a notice is given that tells the property owner that the redemption period has expired and a grace period [usually 30 to 90 days] is given that allows property owner to redeem. It still doesn't make any difference, tax purchase always earns interest until day property owner redeems, this includes the grace period [statutory waiting period]. Below are the state redemption periods.

Notices

Notices are of the extreme utmost importance. Giving the proper notices is just as [or more] important as bidding. If you are the successful bidder on a valuable piece of property and you acquire this property, you can lose everything if you have failed to give the proper notices. Each state has different requirements as to giving the proper notices. In some counties, the treasurer, tax collector or auditor will perform this task for you. However, it is your responsibility to get these procedures done, even reminding the county official to do this.

In Georgia, and some other states, you or your attorney must perform this task. In the majority of states, if the proper notices aren't given to foreclose the right of redemption, then you can lose your investment. For example, in Illinois one must give proper notices in order to file a petition in the circuit court to obtain a tax deed. Strict adherence to this is required. The notice must be given five months, but not less than three months prior to the expiration of the redemption period. If you don't fulfill these statutory requirements to obtain a deed, then you won't be issued a deed.

All mortgagees, lien holders, creditors, and heirs must be given the proper notices. They are entitled to know if their property is going to be petitioned [issued] for a deed. This enables them to redeem property. If there are three sons and two are only notified, the third son can come back and attack the validity of your deed. This happens all the time.

In every state code or statute there are notice requirements. So many new comers find out about this too late. This is necessary to know.

Mortgagees

Mortgagees, lien holders, creditors, heirs, owners of record, etc. that have an interest in property are called "interested parties." All interested parties have to be notified, either by publication, certified mail, by personal service by sheriff or just a posting. If interested parties aren't notified as prescribed by law, then tax buyer will not receive a deed, or deed will be attacked at a later date. Each state's statutes or codes always have sections pertaining to the requirements for notification of interested parties. Some of these requirements are in detail. These notices are given not only for the benefit of the property owner, but for the interested parties. This is due process of law. These notices give the interest parties the right to "not lose their property at a tax sale, or the right to redeem or recover ownership of their property or interest in property."

If all notices are given properly [even to unknown owners], and you are not redeemed, then that is just too bad for the interest parties. You will receive the property. Interested parties forfeit ownership to property all the time for a multitude of reasons.

Subsequent Taxes

When property owners become delinquent in paying their taxes, these are called defaulted, delinquent, or back taxes. If taxes aren't paid the second, third or fourth year, these are called subsequent taxes. In some states a tax purchaser is required to pay these subsequent taxes, thus resulting in an increased investment. Some states will have a subsequent tax sale and original tax purchaser is redeemed. Others, you may lose your investment [sale voided] for failure to pay these taxes. All states have their peculiarities on the procedures for handling these subsequent taxes. You will earn interest on subsequent taxes. You must know these peculiarities and how to understand them.

What is the Tax Deed Process?

After you attend sale, and you are successful bidder, then basically the tax lien sale process is over. This is completed when you are issued a certificate of purchase [or tax deed]. Next, comes the waiting process. Property owner has a time period in which to redeem, if he doesn't, then you proceed with going for the deed. Going for a tax deed is called the tax deed process. This process involves giving the proper notices at the right time, foreclosing the right of redemption, the time frame involved, being issued a deed and the statute of limitations. You will earn interest from date of sale to day of redemption. If property owner does not redeem your certificate, you have a right to the property.

"Risk? I Have Been Told That There Is None."

Lack of knowledge is the most common reason for investor loss. All tax liens expire and become worthless, if not redeemed or a tax deed is not applied for. So if you purchase a lien and the owner fails to redeem the lien and you fail to file for a tax deed, you loose and the property owner may thank you for paying his/her tax for that one year. There may be valid reason not to file for a deed, the property may have been desirable at the time of acquisition of the lien and changes have occurred making the property undesirable or you may have determined that there is potential environmental contamination on or near the property. If you invest in enough tax liens you will have the opportunity to “write-off” or loose on a particular lien. Don’t be discouraged and keep your write-offs at a minimum.

Indisputable References