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Real Estate Investments
January 21, 2019
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One good way to ensure financial success and comfortable retirement is to engage in different Real Estate opportunities like Tax Liens, Tax Deed, Short-Sale, Foreclosure Bailout, and Real Estate Auctions. Because we know these tools to be so effective in boosting a person’s financial freedom, we decided to share an overview of these topics.

Let’s dive in!

Tax Liens

In general, a tax lien occurs when an individual does not pay property taxes on time.  When this occurs, the county where the property is located generates a tax lien certificate.  The county will then offer these certificates at an auction or over-the-counter, but more typically over-the-counter. (Over-the-counter is when you buy the lien directly from the county.) The redemption period on these certificates ranges from six months to three years. (The redemption period is the period of time in which the owner of the property must pay off the investor.)  The interest rate ranges from 12% to 18%.  A tax lien does not result in ownership of the property.

When purchasing a tax lien certificate, you may be able to reserve the certificate with as little as two dollars.  You can often reserve a lien for a short period until you pay the county in full.

Tax Deeds

Similar to a Tax Lien, the county generates a Tax Deed after a period of time when the property taxes are not paid. Depending on the state, there will be an auction to buy the property.  In most deed states, the winning bid will result in ownership of the property. Ownership of the property is the result of being the highest bidder at the deed auction. Typically, no interest is paid on a deed. On a tax deed, your payment will be required almost immediately.  Like most auctions, you will have a short time to pay for the tax deed.  Understand and know what your deadlines will be for payment before you participate in the auction.

** It is important to know whether your state is a lien state, a deed state or a hybrid (tax lien and tax deed at the same time).  The states are evenly divided as lien or deed states.  Georgia and Texas are the only hybrid states.  Deed states, in general, operate using auctions.  Lien states tend to operate on an over-the-counter basis.  An investor will make money by understanding the how the different states sell liens and deeds.

Short-Sale

A short-sale is a sale of real estate property in which the net proceeds from selling the property will fall short of the debts secured by liens against the property. In this case, if all lien holders agree to accept less than the amount owed on the debt, a sale of the property can be accomplished.

Foreclosure Bailout

A Foreclosure Bailout Loan is a mortgage designed to save homeowners from having the properties being foreclosed upon by their banks. … Foreclosure bailout refinances are based on the value of your home amount owed on current mortgages. Typically, the real estate loan is not more than 65% of the value of the property.

Real Estate Auction

A Real Estate Auction is an innovative and effective method of selling real estate property. It is an intense, accelerated real estate marketing process that involves the public sale of any property through open cry, competitive bidding.

If these sound like opportunities you want to take advantage of, reach out to us now so we can get you started!

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