tax resolution services company

1. ssadh@makemytaxes.com212-760-1124 http//:www.makemytaxes.com

2. How to Buy Tax Liens & Tax Deeds • Successfully buying a tax lien certificate or tax deed requires learning a very simple process. The process starts with learning how to research properties of interest. Then, you learn how to participate in the various forms of auction. Finally, there’s the process of profiting, whether it’s being paid interest or acquiring a bargain property through tax foreclosure.

3. Step 1 – Research Tax Sale Property Before the Auction • While bidders regularly bid on tax sale property sight-unseen, that doesn’t mean you sidestep any kind of research. You want to know what you are bidding on and go into the auction with a list of properties that meet your bidding criteria. There are 4 entities to utilize to conduct your research – much of it can be conducted online: • County Treasurer – This is the office that conducts the sale and will have a list of properties slated for the tax sale auction several weeks before the auction. Begin with that list. • County Assessor – When you have a parcel of interest, use the county assessor’s office to look up their potential value. • County Recorder – At the recorder’s office you can investigate whether there are other liens, claims or judgments – like an existing tax lien, or even an IRS lien against the property. Such issues can be common with tax delinquent owners. You may not want to bid on a property with a lot of claims against it. • County Surveyor – If you’ve found listings of interest, you can look up their plat maps and aerial views to see if they are worth considering. Many tax sale parcels are landlocked, are unusually shaped, sit miles from any development, or have no road access, making them virtually worthless.

4. Step 2 – Pay Any Auction Fees and Deposits Many auctions levy fees or deposits in the auction process. • Fees – Charges that are non-refundable. Some jurisdictions charge fees to all bidders just to participate. Others charge fees only against actual bids. Either way, the amount of the fees must be calculated into your yield. Many Arizona jurisdictions charge $125-$150 non-refundable fees to participate in annual certificate sales. • Deposits – Charges that are refundable. This is a way that counties force bidders to have some “skin in the game” and ensure they have serious bidders. Deposits are refunded at the end of the auction to those who didn’t bid or win. For those who did win, deposits are normally subtracted from the winning bid, so the buyer only owes what remains. Most counties in California impose deposits ranging from $2,500 to $5,000.

5. Step 3 – Bid at the Tax Lien or Tax Deed Sale • Once you have a list of potential properties, you’re ready to head off to the auction. Noted above, you may be participating in a live sale at the county courthouse or other location. Or, you may be bidding online using the county’s designated system.

6. Step 4 – Wait During Any Redemption Period After The Tax Sale • Since most states, both tax lien and tax deed ones, have set procedures to allow property owners to make good on their debt and reclaim their property, your next step is to simply wait. Sometimes, the period of time is limited to a few months; in other cases, the redemption period can last as long as a couple of years. • At any time during that interval, an owner can redeem and you’ll be cashed out and receive your bid plus any accrued interest and possibly penalties over the duration you held the lien. • Keep in mind, that if the owner doesn’t redeem you can institute a foreclosure proceeding to obtain title to the property.

7. Step 5 – Profit With Your Tax Liens & Tax Deeds • Profiting from tax lien certificates and tax deeds will generally fall into one or more of 3 categories: earning interest, earning penalty income, and possibly acquiring property for the amount of back taxes. • Here’s how you can profit with tax liens and tax deeds: • Interest – with tax lien certificates, the goal is to earn a healthy interest rate on the amount of your purchase. Interest rates run as high as 12%-16% depending on the state. Your return comes with very little risk because the liens are backed by the municipality, and there is no market fluctuation. • Penalties – many states impose penalties in addition to interest on the tax-delinquent property owner. Those penalties flow to the certificate purchaser. Penalty income can raise your returns as high as 40% in some locations, and depending on the situation. • Acquiring Below-Market Property – the goal of tax deed investing is to acquire property below market value. While only about 1% of tax liens lead to foreclosure, it’s still possible. In some states, foreclosing is a simple process involving a tax deed or sheriff’s deed. In other states, it’s a complex process requiring a lawyer.

8. Contact us 421 Seventh Avenue,Suite # 1200,New York, NY 10001  212-967-4703  info@makemytaxes.com

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