“ACQUIRE REAL ESTATE FOR PENNIES ON THE DOLLAR!” – DON’T BELIEVE THE HYPE! ROBB MAGLEY
"So if you bought the lien at 15%, you're actually
gaining a net annualized return on a paid-off
certificate of 30%," said Sells.
After the redemption period ends, if the owner has
not paid the lien off, you, the investor (as the lienholder), can initiate foreclosure on the property.
According to Sells, the foreclosure process can
often take up to a year or more. You will have to
pay attorney fees, court costs and the additional
according to Sells, the bank or mortgage holder
back taxes due — but at the end of the process
often ends up paying the redemption because
you will have acquired title to the property, quietly,
property taxes are usually escrowed as part of the
legally and for a fraction of the cost you would
mortgage payment. If an owner falls behind on
have paid if acquiring it outright.
their mortgage payments, the taxes won’t be
covered either.
Georgia works a little bit differently.
“The mortgage companies have to pay us just like
“Georgia is what we call a premium bid state,
the homeowner would,” says Sells. “We have the
where the tax penalty is set at 20%,” said Sells.
same right to foreclose on the mortgage company
“So, say you go to a tax sale in Georgia and there
as we do to foreclose on the homeowner; it’s a
is a tax lien of $5,000.00 on a delinquent property
pretty secure spot to be in.”
valued at $200,000.00. You may spend as much
as $100,000 on the tax lien, but the owner, in order
Platinum Investment Properties - Group has had
to clear the lien, is required to pay you back an
amazing success with this stratagem. Even with
additional 20% on top of the $100,000.00 you’ve
reports of the declining inventories of delinquent
spent.” Sells continues to explain, “That amounts
properties and a slight, positive rebound in the
to a $20,000.00 penalty in addition to the original
housing market, there are still an incredible
$5,000.00 tax bill. The net payback to you, the
number of investment opportunities out there.
investor, would be $120,000.00 on the redemption
“What may have seemed like a crazy idea at the
or $100,000.00 on the deed. The bottom line is that
time, Don and I started this business at the peak of
you are either experiencing a high return on the
the real estate boom and have managed to
redemption of the lien, or on the acquisition of the
substantially grow our client base ever since.”
property in one year, or less.”
“The slight positive rebound has not decreased the
number of tax default liabilities we are buying.” It
As the lien holder, you are in an enviable position,
just helps us to liquidate the properties quicker and
in line even before the mortgage company, as the
for greater profits on behalf of our clients,” says
tax lien is considered “Super Premium”. In fact,
Sells.