While most people complain and grumble about the misfortunes brought about by a downtown in the economy or an economic recession, there is a group of investors that are smiling all the way to the bank. These are the Tax Lien Certificate holders.
The economic recession has therefore provided the Best Housing Economy in History…for Tax Lien Inventors! There has never been a better time in history for tax lien investing, ask anybody that’s doing it!
The state of the economy has made obtaining a home from your Tax lien investment much easier, since most people are not paying their taxes and the mortgage institutions are deeply involved in foreclosures and are also holding foreclosure inventory they cannot dispose off. This forces them to write off the lien notes and let the properties go!
In times of an economic boom, 9 out of every 10 people are able to pay their taxes. During a period of good economic growth, you can expect to get about a 90% redemption rate from the home owner. This means 9 out of 10 people pay their taxes before you (the tax lien holder), gains ownership of the house. In this instance you get your investment plus interest back, a pretty wonderful worst case scenario, right?
Now fast forward to 2008 and there is an economic downturn! The crunch has set in, and dropped the redemption rate in many of the housing markets to as low as 50% providing an excellent opportunity for Tax Lien investors, who now have a VERY good chance of getting half of the houses they get Tax Liens for.
Back before the current housing crash, I would shop for the highest interest rate assuming that I would only get one to three houses for every ten liens I bought.
The Huge government secured interest rates and the shortage of houses seemed like the smartest thing I could do with my money at the time…it grew fast!
But now…oh my gosh…houses are available to me left and right!
Not only am I still getting my huge interest rates, but now a ton of my liens are “magically” becoming houses.
Just one quick example, I bought 6 Tax Liens in the last auction in Indiana (I love Indiana because they have a 4 month…YES 4 MONTH redemption period)it’s looking good for me to get at least half of them.
That means 50% of my Tax Liens will become houses that I own free and clear for less than $2000 each.
No matter how bad the market is, I bet I can find a buyer for a house that I can make a profit on by selling it for $1 more than $2000!
Best of all, if my buyer gives me a $2000 down payment on a house that I bought for $2000, I’m in a pure profit situation!!!
Your Best Bet is rent to Own
Creative financing is never more welcome than at a time when the banks are not loaning money. I bet there are millions of people in America right now that would kill to rent or to own a house with me holding the tax lien note. Where there is No bank involvement!
This scenario is one of the great reasons for tax lien investing, rent to own your way to wealth! If the Tenant pays off the note, good for them, they get a house for a fantastic deal.
If they don’t pay their note down month in and month out, you can convict them and get your house right back on the market. Again, as long as you got enough down-payment from the tenant to cover your investment in the house, you are in a total profit situation.
This is the secret to making great money from the homes you get from your tax lien investments, especially in a “down” economy. There are times in economic history when loans are much harder to get than other times and smarts investors take advantage of these times and can help people out of their troubles as a moral benefit.
So there you go…a very long winded way of saying you are crazy not to www.tinyurl.com/c6kxsk and learn more on how you can also benefit from this form of investment and how you can also help those with housing problems.
