Do you know that if a person does not pay the property taxes on their home for a extended period of time (usually 2 years), a tax lien is placed on the property? A lien is a claim against ownership, and they are inherent with a loan. If you do not own something outright...if you have to make a minimum number of payments towards ownership...then there is a lien on the product until the agreed upon amount is paid. A car note is a lien, until it is paid. A home mortgage is a lien, until it is paid. The lien is the right of the lender/agency to "repossess" their property.

Although liens are inheritant to loans, there are other types of liens (claims against ownership) that can be placed against ownership. One such lien is a tax lien. If people do not pay their property taxes, the government has the right to take their property, even if the property is fully paid for (no mortgage). When this situation occurs (which it does in every city/town in the USA yearly), a "tax certificate" is drawn up on the property.

A tax certificate represents a lien on property, these certificates are sold at auctions (usually held in the Spring) and earn interest at a maximum rate of 18% per year. The cost to purchase a certificate is listed in the delinquent advertisement and includes gross tax, interest, advertising cost and the cost of the Tax Certificate Sale. If the certificate is not redeemed by the owner of the property within a set amount of time (2 years in New Jersey)...you own the property!!! If the certificate is redeemed by the owner, they are required to refund your investment plus interest (which I already stated could be as high as 18% per year).

There are companies and individuals who have become extremely wealthy with this investment opportunity. They are either acquiring property worth hundreds of thousands for mere thousands, or they are getting high interest returns (much higher than bank can provide) on money invested. This is something everyone (who has the money) can take advantage of! I encourage black folk to get into this game. It is an opportunity to both obtain property cheaply and increase wealth.

Do you know that if a person does not pay the property taxes on their home for a extended period of time (usually 2 years), a tax lien is placed on the property? A lien is a claim against ownership, and they are inherent with a loan. If you do not own something outright...if you have to make a minimum number of payments towards ownership...then there is a lien on the product until the agreed upon amount is paid. A car note is a lien, until it is paid. A home mortgage is a lien, until it is paid. The lien is the right of the lender/agency to "repossess" their property.

Although liens are inheritant to loans, there are other types of liens (claims against ownership) that can be placed against ownership. One such lien is a tax lien. If people do not pay their property taxes, the government has the right to take their property, even if the property is fully paid for (no mortgage). When this situation occurs (which it does in every city/town in the USA yearly), a "tax certificate" is drawn up on the property.

A tax certificate represents a lien on property, these certificates are sold at auctions (usually held in the Spring) and earn interest at a maximum rate of 18% per year. The cost to purchase a certificate is listed in the delinquent advertisement and includes gross tax, interest, advertising cost and the cost of the Tax Certificate Sale. If the certificate is not redeemed by the owner of the property within a set amount of time (2 years in New Jersey)...you own the property!!! If the certificate is redeemed by the owner, they are required to refund your investment plus interest (which I already stated could be as high as 18% per year).

There are companies and individuals who have become extremely wealthy with this investment opportunity. They are either acquiring property worth hundreds of thousands for mere thousands, or they are getting high interest returns (much higher than bank can provide) on money invested. This is something everyone (who has the money) can take advantage of! I encourage black folk to get into this game. It is an opportunity to both obtain property cheaply and increase wealth.


Yes, it is a mess.

My mom inherited my father's real estate dead and got the dreaded tax lien letter so much (he had owned like 8 properties). She paid them and ended up selling the houses because she just couldn't handle the debt. So people who have trouble paying taxes (which isn't uncommon with 1099'ers), need to be careful to set aside money or just get a lawyer to help fix the problems.

But yeah... for those looking to invest the prices are really low during tax auctions. Real estate is a good way of acquiring wealth and helping the community (getting more black people to own their homes).

This is a revenue channel that I am currently chasing in NYC. The Lien collection company that disposes of properties in New York is J.E.R. Revenue (http://www.jer.com/JERrevserv/Default.asp?f=0) and Xspand (http://www.xspand.com/)

Tim

Some states tax certificate states others are deed states. In some states you can buy certificates right from the court house! such as ALABAMA (at least jeeferson county-birmingham). Deeds or liens range from $300 to a few thousand. Just make sure you dont spend more than the properties worth, like you dont want a lot on top of a toxic waste dump.

You do not have to live in the state to purchase the lien or deed. states with higher returns are, Arizona , Michigan (50% in the secind year!), Florida to name a few.

States That Offer
Tax Deeds:States That Offer
Tax Lien Certificates:

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