There are a few things you can do about competition at Tax Deed auctions.
1. Look for more remote counties where less people live.
I find that people are lazy. They are not willing to drive 1-2-3 hours to for anything so they just go to their local Tax Deed Auction in their metropolitan city. But if you go to an auction where millions of people are living, more people are going to show up and competition increases. At the same time a higher density of population does not automatically mean that more properties are available for sale. On the contrary counties which are almost vacant of people often have tons of tax delinquent properties coming up for auction and since almost nobody lives there and the people from the big cities are too lazy to drive there for the auction, competition is minimal.
Author: Luis Garate
A mechanic's lien is a security interest in the title to property real estate, usually used by individuals who have supplied labor or materials to the owner that have improved the property. Mechanic lien’s exists for both real property and personal property. In the realm of real property or real estate, it is called by various names, including generically a construction lien. It also can be called a material man’s lien or supplier's lien when referring to those supplying materials.
For individuals or companies that supply labor the mechanics lien may be called a laborer's lien or a design professional's lien when referring to architects or designers who contribute to a work of improvement. In the realm of personal property, it is also called an artisan's lien. The term "lien" comes from a French root (via William the Conqueror), with a meaning similar to link; it is related to "liaison." Mechanics liens on property in the United States date from the 1700s.
The worst form of lien that is rare, but you still may find, is an IRS lien. IRS liens don’t go away; they attach themselves like glue to the property of the delinquent taxpayer. It does not show up very often, but it does happen. The property owner, the seller, did not pay their income taxes and the IRS slapped a lien on their property and recorded it in that county. Now anything that person owns in that county has that lien attached to it, and the lien follows the property wherever it goes, meaning even if you don’t see this lien, the lien still comes with it. So if you buy a $10,000 property with a $50,000 lien, guess what? The Lien came with the property and now whenever you want to sell that property any sales proceeds would go to the IRS to help settle that debt, and you would get NOTHING!!! So that’s something you want to look out for!
In today’s article I want to talk about Goal setting, one of the most neglected exercises in the world.
If I were to ask you where you want to be professionally, personally and financially in 5 years from now, would you be able to have an answer ready.
Statistics have shown that well over 90% of Americans (and that is the same in other counties too) do not have written goals.
Often my clients and students ask me how I made a fortune in Tax Delinquent Real Estate Investing. The answer is obvious, by making over 3,203 Real Estate deals since 2002 and making money an virtually all of them.
But then I realize that there is more to it than just making deals. The proper mindset also needs to be there in order to consistently make money and in order to build that Fortune up over time.
And this is when I usually get blank stares from my students. All many want to do is do a deal that nets them 20K or 10K or 50K and then go and use that money to buy the Doo-dads and toys they were craving for. While I own a lot of toys and “doo-das”, this is not what I recommend any starting investor do.
In recent years the prospects of earning high interest rates of up to 16, 18, or even 24% through investing in Tax Lien Certificates has started to attract professional investors and even some mutual funds.
Therefore competition for Tax Liens is increasing. But the determined individual investor still does not need to give up and can instead use some creative techniques to still get the number of Tax Lien Certificates desired.
Tax liens are an excellent way to make a high interest rate on your money and if you apply some advanced logic to your investing strategy you can quite often hit the jack pot and become the owner of the actual property.
However like everything, there are some issues with this. I have mentioned a few of them in my article “Disadvantages of Tax Deed and Tax Lien Investments” but today I want to talk about a different and mostly forgotten one.
What I am talking about is that as an investor waiting for a property owner to redeem the property tax lien, you never know when that will happen.
Tax Lien Foreclosures are a little known method to acquire properties for as little as 5-10% of the true market value of a property.
As I explain on my website http://www.landforpennies.com/SecretsRevealedv3.htm , in the US, every year hundreds of thousands of property owners do not pay their Real Estate property taxes on time. As a result in 18 states there are laws allowing the Counties to do so called “tax Lien Auctions” and auction off the Delinquent Tax obligations to investors in exchange for them receiving several rights.
When it comes to Tax delinquent Property Investing and Tax Lien Investing in particular the investor (=you) has two choices.
- Does he want to go for the high interest rate offered by “Tax Lien Certificates”
- Does he want to go for the chance to get the property through foreclosure of the Tax Lien Certificate?
In the US if a property owner does not pay his property taxes the government will take that property away from him either through a Tax Lien Sale and subsequent foreclosure of the lien or through a Tax Deed Sale.
Tax Lien Sales are a common way in many states for counties to get their Property Tax Dollars released to them. And it is a great way for Investors to earn an excellent interest rate on their investment backed by the Government and valuable real estate worth many times their investment. And the investor has the chance to actually own the underlying property for only the back taxes of a few years plus some foreclosure cost.