Housing Bubble 2008 - Why You Should Invest in Tax Liens Now
July 27th 2008 09:49 am By Web Development in India
Down markets historically have created incredible opportunities to load up on bargains if you know what you are doing. Careful investors will want to limit capital exposure and risk by using risk reversal techniques to control as many properties and potential income streams as possible for the least amount of cash.
Tax lien investing allows you to take a position for potential gain on a property and only limit risk to your initial cash outlay. Plus, when you purchase a tax lien certificate you assume an incredible amount of control over the property at a level typically reserved only for the government. Not even banks can tell you what to do with the property as in most states you will assume the first and highest lien position, even if there is a mortgage.
You will have rights to foreclose and even take possession if specific criteria are not met within certain time frames and you will have government like power behind you to exert your will. Even the banks will be forced to deal on your terms.
The best part is that during the time you are in the deal, you often can also earn double digit levels of interest and penalties that are accruing as a bonus in consideration for your generous support from your new partner (the government) for helping supply the capital for their community ensuring schools will operate, and that police, fire and other organizations are fiscally capable of meeting their obligations. You are so nice!
To be successful you need to be open minded to “going to where the deal is at”, in other words, if you live in Akron, OH and you want the best deals, they may not always be in Akron. Just like when you buy stock, often times you don’t care what state the company is located, but you do care whether or not the deal is the right one and it will make you money.
To truly find the best deals you should judge deals based on what can make you the best profit. Many gurus will tell you that you never have to leave your own county, which may be true for those of you living in larger cities, but realistically many investors will struggle staying local and will often settle for mediocre local deals when instead they can be making money two states over on a good deal.
How do I find these deals around the country? In the past only large institutions and wealthy family trusts were able to search for tax deals on a national level. But as with many other things the Internet has leveled the playing field in this market as well. There are now many ways to find lists of tax lien properties for sale and actual tax lien auctions that are held online. There are also many free government resources to help you research and qualify deals that you are looking at when buying online so you won’t be rushed on the courthouse steps to buy as you will have the time and tools at your disposal to evaluate a deal before you get too excited about it.
If you would like more info on online tax lien investing, visit http://www.BuyTaxLiens.com to view live tax lien sales underway, or subscribe to receive the free daily email alerts.
Copyright Goldman Stone 2008. Please feel free to publish or redistribute this article as long as it is not modified and all URL’s stay intact.
