20 Nov Should You Pay Taxes On Your Investment Property?
Paying Property Taxes once you own the property:
The first thing most of my students want to do after they successfully purchased a property is to go and pay-off those pending back taxes and Tax Liens Certificates (also called TLCs) issued against the property.
Unless you have lots of money to spend, DON'T DO THAT!!!!!!
Learn more about this by reading my detailed eGuide: www.landforpennies.com
Basically though, you should use your cash for something else, like buying more property.
Unless the Tax Lien Redemption period is almost over, there is NO reason why you need to pay these property taxes off.
– If you use your cash for to do more deals instead of to pay off the back taxes, you should be able to generate MUCH more profits doing that than what the county charges you in interest on the non-paid property taxes.
In most cases if you want to pay off these property taxes it is because you are afraid of having debt and perhaps also because you are fearful of finding somebody you can sell the property to before the redemption period ends.
…But don't worry!
First of all, if you follow my proven system explain in my detailed eGuide (www.landforpennies.com) you WILL find someone to sell that parcel in time. And second, if you are getting close to that redemption deadline, there are some options for you to take.
One little known secret is that many states and their counties allow you to redeem one year at a time. So if you are tight on funds, have the expiration date of the redemption period coming up and have NOT YET found a suitable buyer for your property, you can just go to the county and pay off only the oldest TLC. With that now there is one year less of delinquent property taxes outstanding and as result the TLC investor has to wait until next year before they can start foreclosure proceedings. The statutory redemption period is always measured starting with the oldest year where taxes have not yet been paid.
So for example, if a property was located in a state where the redemption period was 5 years, and currently (=TODAY) the taxes were delinquent for the years of 2002, 2003, 2004, 2005 and 2006 and the oldest set of delinquent taxes (the 2002 taxes) are past due for a total time period of 4 years and 11 months you can go in and pay off that one year 2002 only if you want to.
If you do that now in our example we only have 2003, 2004, 2005, and 2006 delinquent and the TLC holder now needs to wait until that oldest year 2003 gets to the point of being 5 years delinquent, effectively buying yourself a year worth of time until this TLC holder can start any foreclosure proceedings again.
To learn more about many different ways to buy and sell Tax Delinquent properties for pennies on the dollar, and virtually without competition, go to my webpage www.landforpennies.com and purchase my real estate investing system which comes with lots of additional Reports and bonuses.
Did I mention that I have a No questions asked MONEY BACK GUARANTEE?
– Jack Bosch.
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