7 Steps to Building Your Profitable Tax Lien Portfolio | Finance ...
There are seven steps that you need to follow in order to build a profitable portfolio of tax lien certificates or tax deeds. Regardless of Which state you are investing in and investing in Whether you are liens or deeds, you need to take these same seven steps. The details of how you accomplish each step may change Depending On Which state you are investing in and investing Whether you are in tax lien certificates, tax deeds, or redeemable tax deeds, but the seven steps remain the same. In this article I will outline these steps and give you a brief description of each one
Step One. Decide on the purpose of your tax lien or tax deed investment portfolio
Are you investing for the future or for current income? This will deterministically mine what type of investment will be best for you, tax lien certificates, tax deeds, or redeemable tax deeds. It will be a big factor in Deciding where you want to invest and your bidding strategy in deterministic mining and how you want to profit from your investment later on. In short everything that you do to develop a profitable portfolio will be based on this decision
Step Two. Determine where you want to invest
You need to identify the area or areas that you want to be investing in. If you want to invest in multiple areas or more than one state, I suggest that you start in one area and learn how to be successful with that one before moving on to another area. Each state and in some cases, each county may have different laws and procedures regarding sales tax. What worked in one area may not work very well in another and you may have a different learning curve for each area
Step Three. Get the tax sale information
Now that you know where you are going to invest, you need to find out when and where the tax sale is held and obtain a list of properties that are in the sale. For most areas this step will not be easy, you just need to know where to go and who to contact to get this information. . Sometimes you will have to pay for it and sometimes you will be able to get it free of charge
Step Four: Do your due diligence on the tax sale properties
This is the most importantstep in the process and Whether or not you do this properly could mean the difference between being extremely profitable and losing money. Once you have a list of properties that are in the sale, you need to do your due diligence on these properties before you bid. The exact procedures that you follow will vary Depending On Which state you are investing in and investing Whether you are in tax lien certificates or tax deeds. . You have to do a little more due diligence for tax deeds than you do for tax liens
Step Five: Prepare to go to the tax sale
Preparing to go to the sale Consists of registering to bid at the sale along with getting your paperwork in order and payment. In most states you need to register before the sale in order to bid. Depending on what state and county you are investing in, you may need to register as far as two weeks before the sale, or you may be able to register as soon as right before. Some municipalities not require you to register Thurs ahead of time, only that you submit the proper paperwork if you are the successful bidder on a property. Some counties will require a deposit in order to register. The deposit amount could be anywhere from $ 100.00 to a few thousand dollars (as in the case of many online sales tax). Large deposits are usually returned to the investor if nothing is purchased at the sale. Smaller deposits are sometimes returned and sometimes not returned, Depending on the county. You also need to make sure that you have the proper funds for payment before you go to the sale. For most sales tax, only certified funds are accepted
Step Six. Decide on a bidding strategy
Before you bid at a tax sale you need to know what the bidding procedure is and what your strategy will be. You?ll have to decide beforehand just how much you are willing to pay for each property that you want to bid on, or how low (in interest) you want to bid. I suggest that you attend at least one tax sale before you bid you are aware that Sun of what is actually being bid and what the competition is like
Step Seven. Protect your investment
Once you purchase a tax lien certificate or tax deed, you need to take steps to protect your investment and maximize your profit. Depending on Whether you are investing in liens or deeds and Which state you are investing in, these steps may include:
a) Recording your lien or deed with the county clerk
b) Paying subsequent taxes
c) clearing the title to the property
d) foreclosing the right to redeem
This is a summary of the steps to building a Necessary profitable tax lien or tax deed portfolio. In subsequent articles I will take each one of these steps and go over them in depth to give you an idea of ??what each step Involves. For more information about how you can build your own profitable tax lien or tax deed portfolio, I invite you to sign up for the free preview teleseminar to my new 8 week coaching course, ?Build Your Profitable Tax Lien Portfolio.? To register, go to http://tinyurl.com/f2hy4.
id=?article-resource?> Tax Lien Investing Coach and Consultant who works with investors who want to learn how to buy profitable tax lien certificates and tax deeds. She is the president of Tax Lien Consulting LLC, a consulting firm for tax lien investors. She is the author of the e-books: Tax Lien Investing Secrets and Tax Lien Lady?s State Guide to Tax Lien and Tax Deed Investing, available at http://www.taxlienconsulting.com For more tips on investing in tax lien certificates send an e-mail to MoreTips@taxlienconsulting.comhttp://EzineArticles.com/?expert=Joanne_Musa
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