Tax Lien Investing, in our new year of 2010, has never been, a better time for ordinary folk, like you and I, to buy homes for 1% to 5% of their market values.
Our economic "downturn" has sadly, made many consumers unable to pay their property taxes, and has SO heavily overburdened banks with foreclosure inventory at its highest peaks that we haven't seen in years.
This is where you the investor, comes in and purchases a tax lien certificate, you basically pay anywhere from a few hundred to just a few thousand dollars, which allows you to become the note holder of the property, if the property is habituated (meaning occupied) then they will have a chance within a certain period of time to make good on the taxes PLUS interest legally obligated to you, which can be anywhere from, as low as 12% up to 30%+ depending which county and state you have the tax lien certificate within.
As you can see a good way of profiting from your investment, as if they DO NOT repay you, most of the time, you will become the property owner free and clear! WOW! Not bad for a few hundred or thousand of dollars invested! Back tracking to a few years ago, within a good economy, the norm used to be 90% Redemption from the home owner, which meant 9 out 10 home owners made good on their tax situation by making a payment, before you the tax lien holder gained ownership of the house.
In which case, you gained back your investment plus interest, as was the worst case scenario! Not bad right? Now sadly, but fortunately fast forward to the present in 2010, and those figures have changed from the 90% as was the case, to a WHOPPING 50% redemption rate, in certain markets, the housing crunch being the culprit.
Now what this interprets too, as the investor, is; you stand a good chance of taking possession and ownership of at least half of the houses that you have tax liens on! TRULY AMAZING! Now as is evident, not only are we profiting from other tax liens, where you will recoup your investment and the interest owed, but it also broadens other horizons, of you having a diversified way of owning 50% of those homes, where you can; 1.
Sell to either other new buyers of a home.
2.
Sell to a Bank, Lending Companies, Investors 3, Rent to Own Lets talk about Rent To Own: The "magical way" due to the "down turn" of the economy, where you can immediately regain the down payment you put down on the house, and also offer a service to other home buyers, where they can actually avoid having to go through a Bank, as you being the note holder, is not only powerful but in demand! And remember creative financing in private circles has never been more in demand, due to the Banks not lending money as they used to.
Now worst case scenario is, the "Tenant" that has rented the property does not make good on paying of the note you hold, you end up evicting them, as most of the time is the case, the down payment you received has most likely covered the investment you have made in order to being the note holder, so the situation in this event still remains profitable to you, and naturally many are waiting to step in and take over the role of becoming a new Tenant! Hence a truly creative way of profiting from having a few Rent to Own homes in your possession.
And due to our economic times, where financing has become so strict, you being a smart investor aid them in their troubles and also provide a moral benefit So the world of starting a home based business, where all you need in today's technology is a PC or Laptop (And yes Mac lovers too) and of course a trusty mouse is within your reach, and here's the real bonus of this.
You don't have to physically travel to other states or the vast 3000+ counties across the United States to purchase these tax lien investments! As once more it can be done from home, and Internet access only! By: Reeder Hardy