At the Tax Lien Certificate Auction There’s the Good and There’s the Bad!

Building a business or an investment portfolio is like constructing a tall building. First you start with the foundation, the foundation is what keeps the building or the investment portfolio standing for a long, long time. Building a foundation is the dirtiest and hardest part of the construction process and it takes time. As the building develops the foundation disappears and is forgotten about, it’s covered up. However, if the foundation isn’t created properly the building will crumble and fall. Investments are the same way.

This website has thousands of pieces of valuable information to benefit you. Most newcomers as they research start with the Incredible Free Offer which is video and audio learning capsules which we call tutorials – It’s FREE. As you can learn from these 30 minute detailed explanations the world of Tax Lien Certificates is very profitable and different from the Tax Deeds which provide extraordinary profits. Both are covered in the Incredible Free Offer.Read on and I’ll share a case history of people just like you who started learning and building their own foundation and now are enjoying comfortable profits and lifestyles.

Recently Palm Beach County, which is Florida’s largest county and America’s second most wealthy county, advertised a Tax Lien Certificate auction.  Palm Beach also conducts Tax Deed auctions on a regular basis.  The Tax Sale Lists are published in the local newspaper and online.  Not all counties have online capability so the prospective bidder needs to check with the local county to locate the newspaper that will have the Tax Lien Sale.

Playground For The Rich And Famous

Palm Beach is a pricy place.  Condos in the Trump Tower range from $1.5 Million to $2 Million.  Single family homes can be $30 Million and more.  There are sections of Palm Beach where every home on the street is more than $10 Million.  And of course there are thousands of homes in the $150,000 to $500,000 range.

Not All Homeowners Pay Property Taxes

For example: In 2009 nearly 29,000 homeowners in Palm Beach County did not make their property taxes by the deadline.  That caused 430 investors to get on the internet and bid at the online auction.  The question is – Is that good?? The answer is yes and no.  Yes – if you’re the county.  They’ve collected the taxes.  Personally, I’d never bid on a property without at least a drive by appraisal.  Why? Simply because properties have fires they’re damaged and they could have unusual problems with the neighborhood that isn’t shown on Zillow or a property picture. You can’t be too cautions.  Why would you buy a Tax Lien Certificate and pay someone else’s taxes?  The answer is: To make a profit and keep your risk low.  The emphasis in that sentence is keep your risk low.

Florida uses a “reverse auction process” to benefit the homeowner.  That is, the bidding starts at 18% and each subsequent bid is lower.  For example: 18% drops to 17 – ½% and 17% drops to 16 – 1/2 % and so on.

Tax Lien Certificates of $100,000 plus are attractive.  I don’t recommend you go into this playground because you won’t make big money.  Institutional investors are greedy for transaction commissions and they will accept rates of return that are slightly above CD rates.  That’s not what you want.  A review of the following examples is helpful.  I must say, don’t try to outsmart the big guys.  There are plenty of Tax Lien Certificates for everyone.  Even if you have $300,000, $500,000 or you’re just starting out with $5,000 or $10,000, as an investor you’re after R.O.I. It’s important to think out your investment strategy before you invest your money. Just as important, it’s mandatory that you have an exit strategy because that’s when you go to the bank. Getting back to Palm Beach County, in this example, the Treasurer had $148 Million in unpaid property taxes from all properties.  This was represented by almost 29,000 Tax Lien Certificates.  Many of those certificates were only $1,000, $3,000 or $5,000.

For example, famous, but now in jail Wall Street Wizard Conrad Black owns a Palm Beach estate valued at $30.7 Million.  The property taxes due were $565,065 – that’s for one year.  Big money attracts big money.  Unbelievable as it appears, the Palm Beach Post analyzed the auction and reported 1,121 bidders tried to buy that Tax Lien Certificate.  In the process those investors bid the Tax Lien Certificate down from 18% to 8.5%.  I’m not suggesting that 8.5% on $565,065 isn’t a good return.  I’m trying to make the point that institutional investors are who you want to shy away from.

A simple but different strategy, which would require more work and fly under the radar regarding competition but would give you a chance to make big money, is to purchase 550 Tax Lien Certificates in the $1,000 to $1,500 range which means more work, more bidding, more checking on properties but also, a better chance to make 18% and be a lot more successful financially.  There were over 29,000 Tax Lien Certificates available.

Here’s another example of big money attracting big money.  Palm Beach developer Robert Mathews neglected to pay his taxes on his ocean front estate valued at $15.8 Million.  The unpaid taxes were $290,183.  The online bidders were very active.  The county received 1,583 total bids.  The winning bidder will be paid 7.5% which is 10.5% below the maximum of 18%.  Competition was fierce.

What’s The Lesson?
And What You Should Do

When the crowd moves in one direction, you need to think about doing the opposite and here’s a good example:  One hundred miles from Palm Beach County is Brevard County.  No famous people, lots of bread and butter houses, lots of mosquitoes.  The county auction Tax Sale List revealed 15,000 Tax Lien Certificates.  Only 9,000 were sold at the auction leaving 6,000 Tax Lien Certificates that could be purchased over the counter by savvy people like you and me that want to earn 18%.  The choice is yours.  Unfortunately, or maybe fortunately, most investors are too lazy to check out the properties and purchase over the counter.  If you’re eager and motivated to make money in these difficult times, you could be earning 18% and take advantage of this market.  The Wall Street Wizards are after brokerage commissions.  Real estate brokers are motivated by real estate commissions.  Attorneys need fees to survive.  I’m not against any one group.  Everyone must earn a living, unless you’re a banker and Obama is taking care of them.  My message is: You control your destiny.  I can provide you with learning materials that can make a big difference if you put them to use.

Warren Buffet – Berkshire Hathaway stock lost 45.6% of its value in the last recession.  Despite the oil shocks, wars, terrorists, the markets came back.  The bad news can be an investor’s friend.  Buffet is the perfect example.  In the bad times he bought Cocoa-Cola and General Electric at 50% off retail.  Those businesses came back and dominated their markets.  I’m not suggesting you buy stocks unless you know what you are doing.  As a matter of fact, don’t buy real estate if you don’t know what you are doing.  Invest in what you know. Real estate and houses will be around a long time.

Everyone is looking for a magic pill: Obama in the USA, Putin in Russia, and Sarkozy in France – worldwide.  Everybody’s worried about the economics.  I’m not going to claim that you can solve all your money problems with on silver bullet.  I can tell you the Tax Lien Certificate and Tax Deed business will continue to get better for at least the next five years.  We don’t have a recession in the Tax Lien Certificate and Tax Deed industry, it’s a growth business.  As more and more homes go to Foreclosure, the owners and the banks allow the taxes to go into default.  This creates many opportunities to buy wholesale real estate.  Everyone reading this letter should look thoroughly at this opportunity.  This will be as good as it gets.

Wealth Building and Thinking Big
Teleconference with America’s Tax Lien Certificate
and Tax Deed Authority Ted Thomas

I know who you are and I understand you want accurate information and you are interested in having more abundance and prosperity in your life. My mission is to help you succeed and make money with Tax Lien Certificates and Tax Deeds. I have a library of educational materials to help you.

Watch and listen and learn from each of the elements in the $471 Incredible Free Offer. Listen, watch, and learn all the way through to the end. This will help you to create an open space in your mind to think about where you want to go and how you want to get there in the fascinating world of Tax Lien Certificates & Tax Deeds.