Article Categories
» Arts & Entertainment
» Automotive
» Business
» Careers & Jobs
» Education & Reference
» Finance
» Food & Drink
» Health & Fitness
» Home & Family
» Internet & Online Businesses
» Miscellaneous
» Self Improvement
» Shopping
» Society & News
» Sports & Recreation
» Technology
» Travel & Leisure
» Writing & Speaking

  Listed Article

  Category: Articles » Finance » Taxes » Article
 

Important Tax Lien Tips For Your Investments




By Dalvin Rumsey

Tax liens are said to be a good investment, but what is that makes them so profitable? To answer this question, you have to get a bit familiar with the basics of tax liens. In the following lines, I shall try to gather all the most important things a person must know before getting involved with such a thing as tax liens. It is quite tricky to start such a business without any proper tips, as money is never something that anyone likes to willingly loose.

To start with the basic things on tax liens, it is a widely known fact that both the state and the county charge taxes on real property. These taxes are raised in order for the government to be able to pay for the essential services that it provides. The main idea is that the government cannot wait for the overdue taxes to be paid, as it budgets the money from taxes for their services. Thus, the solution they have come up with is offering the taxes to investors in the form of a lien.

Don't know how this all works so perfectly? Well, an investor pays the government the owed tax at the auction and then, when the property owner goes to pay off the tax lien, they pay the county. It is then the county that pays the investor for the amount of the principle investment plus a penalty. It is that simple!

Tax liens vary from state to state and can range from 5 to 300 percent on an investment. But don't get all happy about it, as once you buy a lien, your money has very little liquidity. This happens because an investor cannot make their payment until the property owner pays off the tax.
If he does not pay off the lien, then you have the first rights to the property. This is because the laws ensure that your lien will be paid off first. For example, if a bank has a mortgage on a property, if they don't pay you off it is all lost if you foreclose on the property and claim it.

Should you have the second lien on a property, you no longer own the first position. In this case, if a person wants to foreclose on a property, he must first buy out the lien from you, that is by paying off your tax lien first.
 
 
About the Author
Property Liens Check for Liens Before Buying or Selling a Home. Valuable Information for Anyone Looking to Buy or Sell a Home.

Article Source: http://www.simplysearch4it.com/article/40258.html
 
If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/40258.html" as shown above and make it hyperlinked.



  Some other articles by Dalvin Rumsey
How Bad Can Virus Hoaxes Get
Each and every computer user has at least once suffered from the action of a virus. The damage such a malicious little thing causes can be very serious, leading up to the ...

Tips About The Cooling System
Ever gone through a flooding disaster in your house? Did you washing machine ever get a split hose? Well, I guess many of us have at least once experienced such a household ...

Should We Use Online Dating Services
Nowadays, many people seem to choose the online dating services as an alternative to the basic ways of meeting new people and creating romance relationships. The many available online dating and ...

Social Networking Described For You
For those of you who are wondering what such a thing as the social network really means, I can only point to the hundreds of websites who are trying harder each day to bring millions ...

Broadband And The Way It Works
Most people are not aware of what the term broadband really means. Even if this is a word we keep hearing every day, we may not have a clear understanding of how broadband works. ...

T1 Described - Pros And Cons
If you are not perfectly happy with your existing DSL connection, you can always switch to a T1. Reliability is one of the most important factors when choosing the right internet connection, this ...

  
  Recent Articles
Florida Property Tax News: Property Tax Reform Committee Proceedings
by Daniel A. Weiss

Easy bookkeeping, accounts, tax for small businesses
by John Harriyott

March 1st is Florida's Filing Deadline For Agricultural Classification and Charitable, Religious and Educational Exemptions!
by Daniel A. Weiss

Tax preparation: Should You File Or Pay A Professional?
by Kenneth L Myers

Tax return online is a hassle free way of calculating taxes
by Michelle Barkley

Filing Your Tax Return.
by Kenneth L Myers

Tax Return Forms
by Lukas Wade

Tax return online can ease your tax calculation work
by Michelle Barkley

Saving For Retirement: Make the Maximum Contribution to Your Retirement Plan & Retire Secure
by James Lange

IRA & Retirement Planning Mistakes: Don't Fall Victim to Bad IRA and Retirement Plan Advice
by James Lange

Tax Return Online Helps You Calculate Your Tax Returns Promptly
by Michelle Barkley

Can I avoid sales tax on my aircraft by registering it in a Delaware Corporation?
by Thomas A. Alston