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Tax lien real estate investing is an attractive avenue to make great profits, but you can easily get burned if you are not doing your research.
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Introduction • Tax lien real estate investing is an attractive avenue to make great profits, but you can easily get burned if you are not doing your research. • With potential risks, tax lien investing offers substantial rate of return, but nothing great ever came that easy meaning, it has its own risks.
While not many of them are aware of such investment avenue, if you have chosen tax lien business as your real estate investment vehicle, then it is good to be aware of the facts and fictions surrounding it. Therefore, it is imperative to know the nittygritties of it and this post is an attempt to unveil the essentials and myths of tax liens real estate investing.
Facts • A lien is not an enforcement action taken by the IRS. • Approximately 4 to billion dollars in unpaid property taxes are offered for sale to the private sector on an annual basis and having said that, there are some states that do not transfer or assign delinquent real estate taxes to the private sector.
Tarnishing your credit history, tax liens are said to have adverse effects on your credit report, however, there are a few perfectly legitimate ways to remove them. • In some cases, buying a tax lien certificate does become less than a perfect investment.
Guaranteed payment: Don’t be fooled by this myth and invest in tax lien without knowing anything, there is nothing like guaranteed payment in liens. Yes, there are laws to protect the lien holder, but that does not mean that you will get paid for sure. Your assurance is the real estate property that you hold a lien against. • If the property owner doesn’t disburse the amount he/she is supposed to pay you along with the interest accrued for that particular period
you can always foreclose the property and get paid. There are certain pitfalls in it and that is why it is important to do your due diligence on tax sale properties! • If you have heard that liens are one-time investment, then there is no big joke than that. Once you purchase a lien, things aren’t over, but you should keep paying the subsequent liens.
This will help protect your interest in the property and moreover new ones will have primacy over the older ones. Hence, you should reserve a chunk of cash for it separately. • Having said all that, these are not the only myths or fictions surrounding tax lien, in fact, there are so many, and that is why it is imperative to do your due diligence. Hope you found this article to be helpful.
conclusion • If you wanted to unveil some more profound knowledge about tax lien techniques, stay tuned to Zack Childress blogs to know more. Educating realtors, Zack Childress real estate reviews are a blessing to beginners who wanted to make quick cash in the field of real estate.
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