Thursday, 10 June 2010 13:59
Iowa Tax Lien CertificatesWritten by Josh Carr Superstar
Since the Iowa tax lien sales are coming up at the end of this month, we thought it appropriate to talk a little bit about how tax lien certificates are purchased there. Iowa is an extremely promising place to invest in tax liens and has been a popular place for investors for quite some time. It's popular for two primary reasons. The first being its high rate of return, which is 24 percent annually or 2 percent each month. The other benefit is that the state generally has uses a bid down of ownership method at the auction, but it is hardly used. Instead of using the bid down of ownership method, most counties use a method known as round robin bidding or rotational bidding. That essentially means the auctioneer moves around the room in order of number drawn or seat order and gives investors the chance to either purchase the tax lien or pass. In round robin bidding, the investor does not bid down the rate of return or ownership, the tax lien investor simply buys or passes on every tax lien that is presented to them. That makes for simple tax lien investing. Iowa has a two-year redemption period after the time of purchase of the tax lien. The investor collects 2 percent of every month during that period. After 21 months of the redemption period have passed and the property owner has not redeemed, the investor is required to file a 90-day notice of right of redemption affidavit (Sec. 447.9). If the investor does not serve a notice to the property owner within 3 years, the county can void the tax lien certificate. Keep track of your investments along with reminders so these dates are not missed. No Risk Investor is the most trusted resource for tax liens, tax deeds, and real estate investors all over the world. No Risk Investor takes incredible pride in its ability to get into tax liens and deed properties and begin the journey to financial freedom. No Risk Investor provides county lists, property lists, online auction lists, comprehensive training and education, auction calendars, an online auction center, an investor community and much more for its members.Last modified on Friday, 11 June 2010 10:57
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Published in Tax Lien Investing