25 Of The Most Frequently Asked Questions About Tax Liens

  • Who can buy a tax lien certificate?
    • Anyone who has the cash to pay the auctioneer.
  • Will I be evicting someone from their house?
    • No, you are only paying that property owner’s delinquent taxes.  You are not foreclosing on them.
  • Will I own the property at some future date?
    • Possibly, although it’s rare for a property owner to forfeit their real estate.  In Arizona, for example, 99% of all property owners pay (redeem) the taxes due to the county.  The county in turn pays you interest plus a high rate of return.  Nationwide, 95% of all tax lien certificates sold are paid (redeemed) by the property owner.
  • Why don’t people pay their taxes?
    • People die and no one pays the tax, though heirs may pay the taxes later.
    • People run out of money – they become unemployed and have money problems.
    • Some people won’t part with the money until the last minute.  They are making more by investing elsewhere.
  • Isn’t the county or municipality required or obligated to find the property owner?
    • Not exactly.  They send multiple notices via mail and put announcements in the public records and the newspapers.  That’s all they are required to do.
  • What if the property owner dies?
    • The county will forward tax notices to the last-known address.  Additionally they will advertise the tax sale.  Often, heirs or family members step forward to pay the taxes.
  • How many tax lien certificates can I acquire?
    • There’s no restriction.  you can bid and purchase as many as your finances will allow.
  • Whom do I pay?
    • You will give your money to a government agency – there are no brokers or intermediaries to pay.
  • Who will pay me my return?
    • The property owner pays you when they pay their delinquent taxes.  The government agency (the county or municipality that collected the money from you) will contact you and ask you to return your tax lien certificate.  Upon receipt they will send you a government check.
  • Will I have to contact the homeowners at any time?
    • No! You only do business with the government agency.
  • Will I have to foreclose on the property?
    • Statistically there is less than a 5% chance that you’ll ever go through the foreclosure process.  An attorney or government employee would do this service for a small fee as it is all controlled by the statutes of the state involved.
  • When do I get paid?
    • When the county or municipality collects from the property owner, they will notify you.  Upon receipt of your certificate they will pay you.
  • How will I know what I’m buying?
    • First, you are not buying real estate.  You are purchasing a lien on the real estate.  Should you ultimately foreclose and get the property, then you own real estate.
  • What if I end up with the real estate?  What do I own?
    • Here is how the process works.  The county will publish a tax lien sale in the newspaper and public records.  Buyer/bidders should research the public records (plot maps, assessment parcel and subdivision maps).  The buyer/bidder should also purchase local maps and drive by the subject properties.  the drive-by inspection would provide additional appraisal data.  Title companies and appraiser, and real estate agents will provide more in-depth information.  I explain exactly how to do all this in my training webinars and courses.  Sign up above for our next Free Webinar training.
  • What happens to the certificate when I buy it? (Do I take it home?)
    • Yes, you can put it in your safety deposit box or other place for safekeeping.
  • Are the certificate transferable?
    • Yes, you can assign or transfer the certificates to anyone you want.
  • Are the properties always improved?
    • No.  The properties could be vacant land or improved property.  Often large commercial properties are available in the tax lien sale.
  • Is it better to buy improved property or vacant land?
    • Improved property has the advantage of quick re-sale in many cases.  Additionally, improved property will often have mortgage liens.  Mortgage holders rarely let properties go to tax sale.  Properties with mortgage liens almost always assure you of re-payment of your investment.
  • I want to get a property for sure, not just a tax lien certificate.
    • That’s possible – but highly unlikely.  Specialists find that certificate holders get the property in only 1% to 5% of all tax lien sales.  We cover this process in detail in our training course.
  • Is the process of purchasing tax lien certificates the same in all states and counties?
    • No, each state and county uses its own rules.  The state legislatures write the statutes.  However, they are subject to local (county and municipal) interpretation.  Tax lien buyers should research each county before purchasing their tax lien certificate, and should become aware of the local rules.
  • What happens if the property owner does not pay next year’s taxes when they are due?
    • You, the previous year’s certificate holder, can buy the subsequent year if the property owner does not.  This is like buying another safe high yielding C.D.
  • What if I don’t want to buy more than a one-year certificate?
    • You aren’t required to pay more than one year’s taxes.  However, it would probably be wise to note when the next payment is due and pay those taxes also.  You’ll get your money back when the certificate is redeemed, plus an exceptional rate of return.  If you can’t pay the subsequent tax lien, the county will issue a new certificate that they will sell at auction.
  • Is there any way to forecast when a certificate will be paid (redeemed)?
    • No! That’s why you should buy more than one lien certificate.  Different certificates will pay off at different times.
  • Can I buy before the auction – sale?
    • In some counties, leftover or unbid certificates will be available before the auction – sale.
  • Can I lose money buying tax lien certificates?
    • It’s possible to lose money in any investment anywhere and any time.  All investments have some risk, even certificates of deposit.  However, as a rule, tax lien certificates are considered very safe investments.
Dan Nicholson
Dan Nicholson
06:29 14 Jun 17
Ted Thomas' tax sale training is among the best real estate courses I have experienced. It is very thorough, and teaches everything a newbie needs to know to get started quickly and to make money very safely with high yielding tax-foreclosed properties. There are approximately 3,000 tax foreclosure liens and deeds sold daily throughout the USA, so the opportunity is virtually unlimited. Ted's website delivers a ton of great information - tax sale calendars, video and text instruction, and instructive online instruction plus a Q&A session five days each week. A three-day intensive workshop with Ted and his experienced coaches presenting top notch instruction really clarifies any questions and concerns about Tax Foreclosures investing. Students can re-attend this boot camp each time it is offered at no additional charge. Ted definitely delivers much more than any other real estate Guru I know of. I strongly recommend his course. There is definitely a lot of money to be made with tax liens and tax deeds.
Verena Brand
Verena Brand
22:34 11 Jul 17
Ted Thomas, his office, and his coaches are giving a lot of value. The training online and his 3-day auction preparation workshops are complementing each other and worthwhile if you want to learn what you need to know to invest in Tax Lien Certificates and Tax Deeds successfully. His coaches are all actively investing and give you insiders' tips for Tax Sales. During the 3-day live event, I learned important things such as: How to increase your credit. How to protect your wealth. How to prepare yourself for a live and online auction. What land contracts are and how to use them. How CEO space can help you with your business. 13 different ways of selling a tax deed. In conclusion, I highly recommend Ted Thomas and his team if you plan to invest in Tax Deeds and Tax Liens.
Louie Pinto
Louie Pinto
13:32 08 May 17
I met Ted Thomas many years ago at an event. My wife and I were blown away with his knowledge and professionalism. He showed us a way that we could easily invest in safe and secure tax liens and deeds, and make some consistent returns. Well 3 years later, This journey has been amazing. Not only has my wife and I made money with Ted, His customer service team has been extraordinary. They make time to answer questions and I feel they really want you to succeed. His live events are priceless, since he brings in coaches and other successful students to share their expertise.Thanks again Ted, Kim, Bill W, Bill B, Ashley, Lance, Crystal and the rest of the team, that are helping my wife and I achieve financial freedom.
Marco Simon
Marco Simon
14:31 06 Jun 17
When I started this program, I have to admit, I was skeptical and quite frankly a little worried about being able to do this while still working full-time. I am so glad that I took the leap, I just went down to Florida a few weeks ago to the 3 day training and I feel confident that not only can I do this, I can succeed and possibly retire much earlier than anticipated. I am planning to attend my first auction in just a few weeks and I can't wait to put all my new skills to use and start making money! Thanks Ted and I really appreciate all the extra effort you and your team put into teaching me how to do this!
Bill Roth
Bill Roth
04:07 03 Jun 17
Ted Thomas"s program teaches you everything you wanted to know about purchasing Tax Deeds and Tax Liens for pennies on the dollar. I have been with Ted's program for a long time and always learn something new every time I attend one of his workshops. I have purchased multiple tax liens in Florida all at 18% and several properties in Michigan at tax deed auctions. I live in New Mexico where all liens and mortgages stay with the property, so every time I travel I am looking to using my training from Ted to purchase more liens and deeds. Anytime I need assistance I can call Ted's office and talk to his wonderful staff where I receive help anytime I need it. This is a proven program where you can make money from home spending as much time as you want. Bill Roth, Albq. N.M.
Douglas Adsit
Douglas Adsit
23:59 24 May 17
Having been an entrepreneur for over 30 years, the most important thing to me is working with systems that are proven but that allow for business creativity, so that you do not get stale or robotic. Ted's systems are strong and there is plenty of room for innovative results and exit strategies. The presenters were down to earth, smart and genuinely shared their successes. The potential to succeed is very high.
John Mills
John Mills
15:14 12 Jun 17
Ted Thomas provides real world training for those who want to increase their safe money rate of return through owning tax certificates or by buying the actual properties through tax deeds. I don't think anyone has more experience or teaches the material better than he does.My associate and I attended one of his 3 day events in Florida in Feb 2017 and got a great deal out of it.
Fred Wiedemeyer
Fred Wiedemeyer
14:03 12 Oct 17
Highly informative and straightforward workshop on tax deeds and liens by Ted. His admin staff - namely Ashley and Kim - are absolutely awesome!
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