Dear Friend

Welcome to TaxLienEZsystem.com. For several years We have helped people like you increase their wealth by investing in high-yielding, government issued, real estate secured tax lien certificates and tax deeds.

We are sure you have a lot of questions, so We have created a list of answers to commonly asked questions below. Feel free to dive on in. And if you have any other questions feel free to send us an email (contact info at bottom of page) and We'll do our best to get back to you.

Massive Success,

TaxLienEZsystem.com

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Q: What is a tax lien certificate?

A: Essentially, each and every year owners of real estate have a tax lien (aka financial obligation to pay taxes) placed on their real estate. If the property taxes are paid on time the tax lien is removed. If they are not paid, in due time the county government will allow investors to pay on behalf of the real estate owner.

The winning bidder at the public tax lien auction receives a tax lien certificate as proof of purchase. As the owner of the tax lien certificate the investor may expect one of two possible outcomes, 1) An annualized return of 16%, 18%, up to 50% per year on what they paid to obtain the tax lien certificate or 2) Through foreclosure, become the owner of the real estate free and clear of any junior liens (aka mortgages and mechanics liens).

Q: What are tax deeds?

A: In those states in which investors don't have the right to pay the delinquent real estate taxes on behalf of the property owner (aka tax lien certificate states), the real estate property itself is sold and as proof of purchase the tax lien investor gets a deed to the property (aka tax deed). Essentially, the real estate tax lien securing the delinquent real estate property taxes is "foreclosed" at the public foreclosure sale typically called a tax sale auction.

Q: What is a tax deed redeemable?

A: There are only a handful of states which fit this category Texas is one of them. At the public tax foreclosure sale the investor with the winning bid is awarded a deed to the real estate for which the delinquent real estate taxes are due, but that deed is encumbered/restricted by the former owners "right of redemption", the right to buy back the property within a specified period of time or risk losing ownership of the property to the investor who owns the tax deed redeemable. When the property is redeemed the former owner of the property of which the real estate taxes are delinquent must pay what the investor had to pay to obtain the tax deed redeemable plus interest.

Take Texas for example, for most properties bought at the Texas tax sale, the former owner must repay the investor within the 6 month redemption period the amount the investor paid at the tax sale, plus 25% penalty. So either the investor gets 25% on his/her money in 6 months (180 days) or on the 181st day the investor gets a deed to the real estate free and clear of junior liens (i.e. mortgages) for the price he/she paid at the tax sale auction.

If an investor can get their Texas Tax Deeds to redeem each month, rollover the principal and penalty rate of 25% into an new Texas Tax Deed (Texas has Tax Sales Monthly) an investor could realize annualized returns of 300% (12 X 25 = 300).

Q: How do you get a list of tax lien certificates and tax deeds?

A: To secure a list of properties or tax liens to be auctioned off at the county tax sale you must contact the government official responsible for the collection of delinquent real estate property taxes. In most states this government official is the county tax collector or treasurer. Depending on the size of the list, the county may or may not charge a small shipping fee.

Don't be fooled, and purchase these lists from a third party. Many times the county government will send you a list of liens or deeds for free. Many of our clients have found our "National Tax Deed Handbook™" and "National Tax Lien Handbook™" a key time saver since they contain the county contact information, including telephone numbers for every state and county in the USA.

Q: Can I buy tax lien certificates and tax deeds through the mail?

A: In many states their may not be enough investors or money to snatch up all the tax deeds and tax lien certificates. In most states the properties and tax lien obligation is struck off to the taxing entity. The list of these properties which have been struck off (aka auction left overs) may be purchased by mail or over the counter directly from the taxing unit. One of the great advantages of buying "Left-Over-Liens" is that there is no competition to bid down your rate or increase the purchase price.

Q: Can foreigners purchase tax lien certificates or tax deeds?

A: Yes, you need to complete a few extra pages of paper work in order to become a registered tax sale bidder. Basically, uncle sam wants to make sure he gets his taxes on the gain you earn with tax liens and tax deeds. Many investors have found our book "Guaranteed Returns, Real Estate for Pennies on the Dollar" helpful for foreign investors wishing to get started investing in tax lien certificates.

Q: How do I collect the interest on my tax lien certificate?

A: Once you become the owner of the tax lien certificate all you must do is sit back and wait. When the property owner finally decides to pay his tax obligation he / she must pay a visit to the county tax collectors office where he/she will repay what you paid to acquire that tax lien certificate plus interest. At this point the government will contact you, ask you to return the tax lien certificate and upon receipt of the tax lien certificate the government will generate a check in the amount you paid to acquire the tax lien certificate plus interest.

Q: How long until I get my money plus interest?

A: Typically, you don't get paid until the delinquent property owner steps forward and pays their delinquent taxes plus interest. The time you money will be tied up is about 2 years. If the delinquent tax payer does not pay the property taxes plus interest within the statute mandated redemption period you can seek ownership of the property as payment for the debt.

Q: If I become the owner will I have to pay the mortgage?

A: Generally speaking, when real estate is sold at a county tax sale auction, the real estate tax lien is typically the first lien against the real estate property. If this is the situation, then the investor who purchased the real estate at the tax sale will take ownership of that property free of all other junior liens . Basically, if a real estate property tax lien is foreclosed all other outstanding junior liens/obligations are wiped out There are some exceptions to this rule., which, are covered in our book "Guaranteed Returns, Real Estate for Pennies on the Dollar™".

Q: What risks do I need to be aware of?

A: Let me make myself clear, investing in tax lien certificates and tax deeds is a lot less riskier than the stock market. However, there are a handful of things to look out for, aka environmental, useless land, bankruptcy, IRS tax liens and others unmentioned here. It is important that you know how to do your research so you can minimize your risks as a tax lien certificates and tax deed investor.

Q: Which county sells the most tax liens?

A: Maricopa county, Arizona is the largest county in the U.S. that sells Tax Lien Certificates. It is also the most competitive.

Q: What is the fastest or smartest way for me to get started?

A: Have you ever hear the phrase "Don't reinvent the wheel"? As you know your time is money and these days it seems that time is harder and harder to come by. Many investors have found it helpful to learn how to invest in tax lien certificates by reading books, attending seminars and working with a coach or mentor.

Q: How much can I make investing in tax lien certificates and tax deeds?

A: Try out our tax lien certificate calculator below to learn how much you can make investing in tax liens and tax deeds. Just play with the Initial Deposit, Annual Deposit, Years you will continue to invest, and desired interest rate.

Q: Do you have a tax lien certificate and tax deed investing newsletter?

A: Yes, We have a newsletter that goes out twice a month and features tax lien certificate and tax deed information. In some instances, WeI have other investing experts contribute articles. In fact, when you join our newsletter We will send you a spreadsheet detailing all 50 states, interest rates, redemption periods, and county contact links. This valuable report retails for $9.95 but is yours can be yours FREE of Charge by simply joining our newsletter. We believe in the law of reciprocity and know that whatever we can do to help you will come back a hundred fold. Click here to join our tax lien certificate newsletter