There is so much more.... Do you get first dibs on 2nd place? Do you get the deed after redemption period or does it go into auction by the county and then u get paid if it sells? What happens if it does not sell.... Do you lose money? Essentially every state is different.
Hi Gyan, with tax lien certificates you either get paid or you get the property, here is a blog to check out: tedthomas.com/making-money-with-tax-liens/
So, after you buy the tax lien and after the homeowner don’t pay the taxes how long before the county hands over the possession of the property to the holder of the lien?
You will be bidding on the certificates, typically the bidding method is you are bidding DOWN the interest rate you are willing to accept - Ted Thomas Team
It is your choice if you wish to continue paying the taxes to secure your interest rate for each year, but you do not have to do that - Ted Thomas Team
I recommend purchasing in various counties and states that offer tax lien certificates. That way the chances of the tax lien certificate redeeming will be higher monthly - Ted Thomas Team
when they default, and don't pay. what happens when you enter into land court with the previous home owner? can their mortgage company/homeowner try and get money out of me for the FMV
Thanks for asking your question. I am not sure about your abbreviation, FMV? does that mean Fair Market Value? If someone defaults on taxes they have defaulted on the first lien. Because they have defaulted the Treasurer will levy on the property and ultimately confiscate the property and in the process of confiscation will wipe out off liens that are JR to the tax liens. - Ted Thomas
Here is a list of states that auction off tax lien certificates, you have to go through the county and register for the auction to purchase a tax lien certificate: tedthomas.com/faqs/tax-lien-certificate-states/
People can still be living at the property. We do teach in our course how to do processes like "Cash for keys" or the steps to take for eviction. - Ted Thomas Team
That depends on the county rules. Places like Texas and Georgia you receive your TOTAL bid amount, places like Maryland you only receive interest on the minimum bid. To find this information it would be in the rules for the county auction you are interested in attending - Ted Thomas Team
The state I live in is a tax deed state (NC) so from my understanding I would need to pay the tax owed, be issued a tax deed will this make me the new owner? Or would I need to attend the auction held for that property and the property is awarded the highest or Lowest bidder if it is me?
Hi, in North Carolina, the process involves attending and succeeding in an auction to obtain the deed; the deed is awarded to the highest bidder. - Ted Thomas Team
Are tax lien properties always occupied? Or can the house be burned down and I not know if I don’t see it in person. Asking because I wasn’t to buy out of state. And are tax deed sales of houses that are unoccupied?
Thank you for your question, tax lien and tax deed properties could be vacant or occupied, you will be able to determine that when you have boots on the ground. You should not invest any money unless you or someone you hire has looked at the properties condition - Ted Thomas team
Thanks for asking. In California, they only sell tax-defaulted property. So there is no interest rate, you actually get the property when you purchase at the auction. If you go to Lake County they will tell you when their auction might be held and once you know when it's scheduled they will have the list of properties for bidding and it will say what the minimum bid for the properties are. - Ted Thomas
Two Years! With this link, you can sign up for FREE to access information on all 50 states, along with a calendar highlighting upcoming auctions in your chosen state! tedthomas.com/freeauctionlist
In Florida it will go to a secondary auction. For all other tax lien certificate states you will be able to foreclose on the property after the redemption period, for example in Arizona that is 3 years. You get paid or you get the property- Ted Thomas Team
Hi Ted I'm hearing different info about how long and how expensive it us to her clear title typically?. I'm mostly looking in Florida Miami Dade county and maybe 1 County up from there. Do you also have good reputable lawyers names that are reasonable and reliable in that area of Florida? Thanks so very much, live your videos..I'm in Canada. No luck yet but I've participated in tax auctions here. Now I'm thinking Florida instead. Also, who could I hire to have boots on the ground to look for me and verify its ok? Thanks!
Hi Tina, it depends but typically it can cost $3,000-$4,000 to clear a title. I can not recommend any lawyers, but I can recommend to interview a few before committing to one. I also recommend to hire a realtor or post an ad on Facebook to have someone local check out the property for you - Ted Thomas Team
At 22:40 into the video the calculation states that $50 at 18% is $9... "in two years". Does that mean that the certificate pays a flat percentage over the whole term and not an annual rate? I would have thought that it paid 9%/annum or $18 over two years (or more if compounded).
The interest is credited monthly against the amount invested, not compounded. That means that if you get a TLC in Florida at 18% and get paid back on a $1000 tax lien investment in six months you will get back $1,090. If 12 months: $1,180. 24 months: $1,360. That totals 36% over TWO years.
Thanks for your question, if you are buying at a tax defaulted auction there could be squatters, the property could be trashed. Rule #1 from Ted Thomas is - boots on the ground. So you would know the condition of the property and if there was trash and squatters.
So I live in Texas and if I attend an auction and win a tax deed on a property, What would happen if the owner doesn't pay the taxes owed within the redemption period?
Hi Team Ted, really appreciate Randy and Teds info. I niticed that redemptions are 2-3 years, does that mean if i buy a certificate on say july 1st 2023 and the owners pay if on August 22nd, do i have go wait fhe full redemption period? Fyi I also signed up for your dah class this June, super excited! Thx team
Hi Angie, no thats a great quesiton. The interest rate is annualized but the home owner can redeem at any time. At that point you would get your money back plus the interest earned in that period. - Ted Thomas Team
Thank you! With this link, you can sign up for FREE to access information on all 50 states, along with a calendar highlighting upcoming auctions in your chosen state! tedthomas.com/freeytl/
If someone does buys the tax lien for the next year, you have first position unless you agree to allow him/her to buy you out. But, they would have to give you your original investment plus interest.
If you were a Ted Thomas student you would know that you get a minimum 5% return in Florida even if it gets bid down to .25% 😉- Chapter 197 Section 472 and Section 172 ~ Ted Thomas Team
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TED, You look great , your shirt's so nice. Your experience n knowledge is incredible. Love you❤
There is so much more.... Do you get first dibs on 2nd place?
Do you get the deed after redemption period or does it go into auction by the county and then u get paid if it sells?
What happens if it does not sell.... Do you lose money?
Essentially every state is different.
Hi Gyan, with tax lien certificates you either get paid or you get the property, here is a blog to check out: tedthomas.com/making-money-with-tax-liens/
So, after you buy the tax lien and after the homeowner don’t pay the taxes how long before the county hands over the possession of the property to the holder of the lien?
That depends on the state - which we teach you - for example in Arizona it is 3 years but in South Carolina it is 1 year - Ted Thomas Team
Like Maryland it's 6 months. It's great for investors bad for homeowners.
If i already have the property what it's next step
Thank you Ted for this great information.
Glad it was helpful! Grab your list of upcoming auctions in the United States!: tedthomas.com/freeauctionlist
Do you bid on the certificates or just buy the certificates
You will be bidding on the certificates, typically the bidding method is you are bidding DOWN the interest rate you are willing to accept - Ted Thomas Team
great questions asked.
Thank you! Make sure to get your FREE list of upcoming auctions here: tedthomas.com/freeauctionlist
Do you pay they're taxes every year for the 3 year term or just once?
It is your choice if you wish to continue paying the taxes to secure your interest rate for each year, but you do not have to do that - Ted Thomas Team
Very helpful. I wonder why 16% is the cap in Arizona?
Its the law :)
Ted how can you have cash flow on tax lien monthly?
I recommend purchasing in various counties and states that offer tax lien certificates. That way the chances of the tax lien certificate redeeming will be higher monthly - Ted Thomas Team
Is the interest paid monthly, yearly or only in the end when you get your money back?
The interest is an annualized return and you will be paid when the homeowner comes in and pays the delinquent property taxes - Ted Thomas Team
when they default, and don't pay. what happens when you enter into land court with the previous home owner? can their mortgage company/homeowner try and get money out of me for the FMV
Thanks for asking your question. I am not sure about your abbreviation, FMV? does that mean Fair Market Value? If someone defaults on taxes they have defaulted on the first lien. Because they have defaulted the Treasurer will levy on the property and ultimately confiscate the property and in the process of confiscation will wipe out off liens that are JR to the tax liens. - Ted Thomas
May I ask where I can get Tax Lien Certificates?
Here is a list of states that auction off tax lien certificates, you have to go through the county and register for the auction to purchase a tax lien certificate: tedthomas.com/faqs/tax-lien-certificate-states/
So, What newspaper is that?
The county can decide what newspaper they would like to publish in so check with the local county for specific details - Ted Thomas Team
Are people still residing in these properties and what if they dont want to move out?
People can still be living at the property. We do teach in our course how to do processes like "Cash for keys" or the steps to take for eviction. - Ted Thomas Team
What happens if owner dies and no heirs. You paid the taxes?
This is in broward county.
Does the 24 month rule still apply??
If you do not get paid you get the property! Check this article out: tedthomas.com/what-is-a-tax-lien-sale/
So if the starting bid is 3k (for taxes owed), then you won it for 5k, will the county pay you the 5k plus interest or just the 3k plus interest?
That depends on the county rules. Places like Texas and Georgia you receive your TOTAL bid amount, places like Maryland you only receive interest on the minimum bid. To find this information it would be in the rules for the county auction you are interested in attending - Ted Thomas Team
Is the mortgage on the property wiped out. Or will I need to pay it if the property goes into foreclosure because owner doesn't pay the taxes.
Typically the mortgage is wiped out, I recommend looking at the county rules before purchasing - Ted Thomas team
Do you recommend buying these tax liens under your LLC?
Yes if you have an LLC! But it is not required - Ted Thomas Team
The state I live in is a tax deed state (NC) so from my understanding I would need to pay the tax owed, be issued a tax deed will this make me the new owner? Or would I need to attend the auction held for that property and the property is awarded the highest or Lowest bidder if it is me?
Hi, in North Carolina, the process involves attending and succeeding in an auction to obtain the deed; the deed is awarded to the highest bidder. - Ted Thomas Team
How do I attend your other classes
You can go to tedthomas.com/1dayworkshop to learn more about our virtual workshop!
How do you read it in the paper?
Are tax lien properties always occupied? Or can the house be burned down and I not know if I don’t see it in person. Asking because I wasn’t to buy out of state. And are tax deed sales of houses that are unoccupied?
Thank you for your question, tax lien and tax deed properties could be vacant or occupied, you will be able to determine that when you have boots on the ground. You should not invest any money unless you or someone you hire has looked at the properties condition - Ted Thomas team
What part does pf 7461 form play in this?
Thanks for your comment, sorry but I have no idea what PF 7461 is. - Ted Thomas
Are Tlc tax right offs?
No
how much cash do I need to start investing with 0% interest funding. would $1500 be enough to start here I Lake county California?
Thanks for asking. In California, they only sell tax-defaulted property. So there is no interest rate, you actually get the property when you purchase at the auction. If you go to Lake County they will tell you when their auction might be held and once you know when it's scheduled they will have the list of properties for bidding and it will say what the minimum bid for the properties are. - Ted Thomas
what about new jersey how long is the redemption period
Two Years! With this link, you can sign up for FREE to access information on all 50 states, along with a calendar highlighting upcoming auctions in your chosen state! tedthomas.com/freeauctionlist
If the homeowner has 2 years for redemption, what happens to the taxes that will be owed for year 2?
In Florida it will go to a secondary auction. For all other tax lien certificate states you will be able to foreclose on the property after the redemption period, for example in Arizona that is 3 years. You get paid or you get the property- Ted Thomas Team
Hi Ted I'm hearing different info about how long and how expensive it us to her clear title typically?. I'm mostly looking in Florida Miami Dade county and maybe 1 County up from there. Do you also have good reputable lawyers names that are reasonable and reliable in that area of Florida? Thanks so very much, live your videos..I'm in Canada. No luck yet but I've participated in tax auctions here. Now I'm thinking Florida instead.
Also, who could I hire to have boots on the ground to look for me and verify its ok? Thanks!
Hi Tina, it depends but typically it can cost $3,000-$4,000 to clear a title. I can not recommend any lawyers, but I can recommend to interview a few before committing to one. I also recommend to hire a realtor or post an ad on Facebook to have someone local check out the property for you - Ted Thomas Team
Where/how can I sign up for training classes preferably live/in-person training?
Currently we only have online introductory classes every two weeks, our next one being December 16th! Check it out: tedthomas.com/1dayworkshop
Where can I buy the certificate?
Here is a link to all the states that sell tax lien certificates: tedthomas.com/faqs/tax-lien-certificate-states/
Hi Ted Thank you for this information , question if the people don't pay do we keep the property ? or does there bank keep it ?
Hi Maria, If you don't get paid you get the property!
Is this only with tax deed states?
U keep the property without a mortgage
At 22:40 into the video the calculation states that $50 at 18% is $9... "in two years". Does that mean that the certificate pays a flat percentage over the whole term and not an annual rate?
I would have thought that it paid 9%/annum or $18 over two years (or more if compounded).
The interest is credited monthly against the amount invested, not compounded. That means that if you get a TLC in Florida at 18% and get paid back on a $1000 tax lien investment in six months you will get back $1,090. If 12 months: $1,180. 24 months: $1,360. That totals 36% over TWO years.
What about homestead laws? Will that effect anything?
No but make sure to check the local county rules for more details - Ted Thomas Team
What about the owner trash the house ? or squatters?
Thanks for your question, if you are buying at a tax defaulted auction there could be squatters, the property could be trashed. Rule #1 from Ted Thomas is - boots on the ground. So you would know the condition of the property and if there was trash and squatters.
So I live in Texas and if I attend an auction and win a tax deed on a property, What would happen if the owner doesn't pay the taxes owed within the redemption period?
Check out this video on Texas, it should clear up any confusion: ua-cam.com/video/iJ3r_Ooc53g/v-deo.html
Do you have any seminars? I’m ready to learn as much as I can and get started
I have virtual workshop twice a month! Here is more information about our upcoming one: tedthomas.com/1dayworkshop
thank you so much!!!
You're welcome! Don't forget to grab your free auction list tedthomas.com/freeauctionlist
Hi Team Ted, really appreciate Randy and Teds info. I niticed that redemptions are 2-3 years, does that mean if i buy a certificate on say july 1st 2023 and the owners pay if on August 22nd, do i have go wait fhe full redemption period? Fyi I also signed up for your dah class this June, super excited! Thx team
Hi Angie, no thats a great quesiton. The interest rate is annualized but the home owner can redeem at any time. At that point you would get your money back plus the interest earned in that period. - Ted Thomas Team
Can I do this If Am Not american? I’m a foreigner
Yes! Check out this article: tedthomas.com/can-foreigners-invest-in-us-real-estate/
Great info tgx
Thank you! With this link, you can sign up for FREE to access information on all 50 states, along with a calendar highlighting upcoming auctions in your chosen state! tedthomas.com/freeytl/
I want to buy all the bad property by the tax liens. People live in bad neighborhoods investors by in these neighborhoods too.
Do you teach tax deed
Yes we do! We have a one day workshop coming up that teaches all about tax defaulted property, check it out here: tedthomas.com/1dayworkshop
What happens if I buy the tax lien for one year and then somebody else buys the tax lien for the next year?
When the owner comes to redeem the certificate, you will be paid your investment plus interest. - Ted Thomas Team
In most counties you get bids at buying the lien in subsequent years
If someone does buys the tax lien for the next year, you have first position unless you agree to allow him/her to buy you out. But, they would have to give you your original investment plus interest.
Where do I find my tax for Georgia
That's the problem in Florida they bid down the tax liens. Most tax lien auctions in Florida the winning bidder gets 0.25% which sucks.
If you were a Ted Thomas student you would know that you get a minimum 5% return in Florida even if it gets bid down to .25% 😉- Chapter 197 Section 472 and Section 172 ~ Ted Thomas Team
Thank you! It’s very helpful.
You're welcome!
2 or 3 years. Oml