Real Estate's best kept secret

[Kanku Livae]

As Donald Trump always say "the money is in the deal!" If you could scope up deals that are 50-80% of market value and selling them 25-30% below market value, then you are having a slam dunk Investing in Real Estate. The question is, how do we find these type of deals? That's easy, at the tax lien/tax deed auctions.

What is a Tax Lien certificate?
-A tax lien certificate is a certificate that a county sells to satisfy a property's delinquent property tax. An investor that possesses the TLC have the "right to first priority lien" meaning if the real property owner redeems the property back during a redemption period attached to the certificated. In a Lien sale you are not purchasing the rights to the property at the sale. However, if the property is not claimed by the rightful owner of the property during the redemption period; the certificate holder of the lien will own the property free and clear from mortgage liens and/or other liens attached to the property.

-In Tax Deed States, its kind of the same as tax liens but the only difference I know is when purchasing a lien, You are actually buying the property deed. Some states like Texas, Georgia, Hawaii are known as redeemable deeds which means it has both characteristics of Lien and Deed States. Redeemable Deed states will sell the deeds at auctions with a Redemption period attached to it.

Note: In tax liens and tax deed investing, there are only two outcomes

Two Outcomes of Investing in Liens and Redeemable Deeds:
1. Invest and property owner redeems: Depending on each county's interest rate, If the property owner redeems; you are Entitles to your initial investment + interest + fees. Can be anywhere between 8%-50% per year.

2. Invest in tax liens and property owner does not redeem- You can apply for a deed in tax lien states/counties and get the property for the price of the back taxes only can be from $25-1million dollars.

Investing in tax lien and deeds can be a lucrative way for beginning and experienced investors alike to start investing in real estate.