Realty411 Magazine Featuring Lee Arnold from Cogo Capital

with the county and you will receive a check back from the county when the property owner pays the taxes. The check will be the full amount of your investment plus the high interest rate. The objective in selling tax lien certificates is to allow investors to generate money but more importantly the county now has revenue to pay for county employees plus police and fire departments, schools, roads, libraries, and hospitals. Tax lien certificates are a winner for the county, they get revenue; tax lien certificates are winners for the investors because they earn a high rate of interest. Plus, they are a good deal for the homeowner or property owner because it gives them time to pay their taxes. The sales for delinquent property taxes occur in approxim ately half of the counties in the United States. Tax sales are announced by the county, sometimes in the newspaper, sometimes online, many times both. This is a very formal process, it has been in effect for over 100 years. Most investors have no idea about the tax system. Once you learn this process and learn how to honorably and ethically take advantage of it, you can earn money for the rest of your life. Tax lien certificates are a safe, secure investment. The property secures the tax lien certificate. For example, if you purchased a tax lien certificate and paid the county and the property owner never redeemed, that is comes forward and pays you back your money and the high interest, the defaulting property owner will lose the property to you. Let me repeat that. You will invest your money with the county, your investment is secured by the real estate, the interest rate on your certificate is guaranteed. However, if the property owner fails to pay the principal and the interest the owner will default and you, the owner of the tax certificate, will be awarded the property mortgage free. Of course, this sounds way too be good to be true. However, this system has been in effect for well over 100 years. Unfortunately, tax lien certificates and the processes and procedures are not uniform and they’re different from county to county. This will require some study on behalf on the investor. Here is a perfect example from recent students of mine. Drew and Recia, a young couple, attended my training and followed it step- by-step. They purchased a tax lien certificate in the amount of $11,000. The property owner failed to redeem, that is failed to pay their taxes. The law allows Drew and Recia to become the new owners of that property. They now own the property without a mortgage. The value according to the tax assessor, the MLS system and Zillow was $180,000. 51 As you can see, you can make money with interest rates 16%, 18%, 24%, 36% and every once in a while a property owner fails to pay, and you get the property without a mortgage. That’s pretty amazing but it’s the law in all counties. Watch for my next article and I will have more about the 3,000 plus counties that sell tax lien certificates and tax defaulted properties. Here are a couple of most frequently asked questions . I’ll have hundreds of these which I’ll make a gift to you in future articles: 1. Q: Who can buy a tax certificate? A: Anyone who has cash to pay the local county government (auctioneer) 2. Q: Why don’t people pay their property taxes…? A: Numerous answers: People pass on (die) and no one payed the property tax. In many instances, heirs do not understand taxes are due. People run out of money; they become unemployed and have temporary money problems. Perhaps it's a family crisis, a hurricane blows off the roof, or some other major catastrophe.

Realty411 Magazine Featuring Lee Arnold from Cogo Capital | Page 51