How to Make
Tax Liens
Actually Work
M
Discover how Chris Gleason,
Managing Director of MMG Capital,
purchases tax liens the right way.
ost real estate
investors have heard
about Tax Lien
Investing at some
point during their
investing career. Between information-
selling gurus, late night infomercials,
and actual tax lien investors, the
concept is generally widespread and
understood. When you bid on and
buy a tax lien you’re not buying real
estate. Rather, you’re buying the right
to collect a property owner’s debt that
is the result of property taxes going
unpaid. You also receive the right to
enforce that payment after a statutory
period of time has passed.
For the sake of this article, we’re not
going to beat that dead horse and talk
about what Tax Lien Investing is. Let’s
go ahead and presume that you already
know what Tax Liens are and that you
also believe that they’re one of the best
(if not THE best) vehicles for investors
that want to earn passive income in a
conservative, secured environment.
If for some reason you don’t believe
that then this article probably won’t
be relevant to you. The purpose of this
exploration of Tax Liens is to expand
on this great investment vehicle and
examine the most important elements
for determining Tax Lien Investing
success. Plenty of investors attempt
to invest in Tax Liens but struggle to
figure out exactly how to make these
assets work for them. What follows
Realty411Guide.com
is a short list of some of the traits and
resources of the most successful Tax Lien
investing businesses across the country.
Most often, investors that struggle with
Tax Lien Investing lack one or all of these:
a different set of resources, expertise and
circumstances. Investors with less in the
resource category than other competitors
will, more often than not, get pushed
around. This can mean being able to
purchase desirable liens because they’re
being snatched up by other investors.
It can also mean being forced to accept
lower than anticipated interest rates to
purchase desirable liens. Having more
muscle helps investors achieve what
MUSCLE
The tax lien marketplace is a highly
competitive one, but also an opportunistic
one if you know what you’re doing.
Every investor bidding at an auction has
PAGE 88 • 2014
Continued on pg. 95
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