I heard about tax liens but i don’t really understand what is it?? and is it possible if you pick up the taxes for a house, you might own the house ? ???
I am so confused. Does anyone have any idea what is it?
Depending on what state you are talking about. Some are tax deed sales where you actually can purchase the house for the taxes…some are tax certificates that have some sort of redemption period on them. In Georgia the tax sales are liens that have a 12 month right of redemption and the purchaser of the tax lien earns 20% on their money that they paid for the lien. Do a search on tax liens for your state and you will find more information than you can read. Best of luck to you!
Theres a wealth of information right on this web site. Near the top of column on the left side of this page is “Real Estate Articles” Scroll to the bottom and you will find about 10 articles to tell you all about tax liens.
Jimmysyf & Triton63,
I encourage you both to read the book “Profit by investing in real estate tax liens” by Larry Loftis. This book will answer any question you have about investing in real estate tax liens, deeds or certificates. There is a ton of misinformation out there on tax lien investing such as: “In Georgia the tax sales are liens that have a 12 month right of redemption and the purchaser of the tax lien earns 20% on their money that they paid for the lien”. It is not that you can’t earn that kind of return, but you need to read the book to get further clarification.
Good Luck,
Cap
That is a good point, just because the tax certificate might have a stated interest rate of say 20% does not mean that is what you will earn. There can be heavy competition in the bidding for these certificates and the more you bid the lower the yield. Also, as mentioned rules vary by state so as important as it might be to understand the overall concept it is even more important to understand all of the rules governing sales in your area of choice.