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.

A tax lien certificate is nothing more than a lien on a property for not paying taxes. Essentially, each and every year owners of real estate have a tax lien (aka financial obligation to pay taxes) placed on their real estate. If the property taxes are paid on time the tax lien is removed. If they are not paid, in due time the county government will allow investors to pay on behalf of the real estate owner. The winning bidder at the public tax lien auction receives a tax lien certificate as proof of purchase. As the owner of the tax lien certificate the investor may expect one of two possible outcomes, 1) An annualized return of 16%, 18%, up to 50% per year on what they paid to obtain the tax lien certificate or 2) Through foreclosure, become the owner of the real estate free and clear of any junior liens (aka mortgages and mechanics liens).Tax lien certificates are probably one of the safest, most lucrative and undiscovered investing methods in the world.  Here is why: They routinely provide an investment return to investors of 16 to 50 percent per year. In the second year, many states tack on a substantial penalty so the investment returns in the second year can exceed 24 percent. In some cases, tax lien investors can walk away with an entire property for only the taxes owed. Because state governments issue tax liens and monitor the sales, the investment risk is low.  Also, the certificates are backed by the property they are issued against.  If the defaulter does not pay the investor all money and interest due, they lose their entire property for only the taxes and penalties owed.  People get very motivated to pay up if the alternative is to lose their home. They are an undiscovered investing method.  This is because few people have even heard of tax lien certificates and very few books have been written on the subject of tax lien investing. No Risk Investor is the ultimate resource and tool for tax liens, tax deeds, and real estate investors all over the world. No Risk Investor takes incredible pride in its ability to help students take action, get into properties, and begin the journey to financial freedom. No Risk Investor provides county lists, property lists, online auction lists, comprehensive training and education, an auction calendar, an online auction center, an investor community and much more for its members.

Internal Revenue Code section 6321 provides: Sec. 6321. LIEN FOR TAXES. If any person liable to pay any tax neglects or refuses to pay the same after demand, the amount (including any interest, additional amount, addition to tax, or assessable penalty, together with any costs that may accrue in addition thereto) shall be a lien in favor of the United States upon all property and rights to property, whether real or personal, belong to such person. Internal Revenue Code section 6322 provides: Sec. 6322. PERIOD OF LIEN. Unless another date is specifically fixed by law, the lien imposed by section 6321 shall arise at the time the assessment is made and shall continue until the liability for the amount so assessed (or a judgment against the taxpayer arising out of such liability) is satisfied or becomes unenforceable by reason of lapse of time. The term "assessment" refers to the statutory assessment made by the Internal Revenue Service (IRS) under 26 U.S.C. § 6201 (that is, the formal recording of the tax in the official books and records at the office of the Secretary of the U.S. Department of the Treasury). Generally, the "person liable to pay any tax" described in section 6321 must pay the tax within ten days of the written notice and demand. If the taxpayer fails to pay the tax within the ten day period, the tax lien arises automatically (i.e., by operation of law), and is effective retroactively to (i.e., arises at) the date of the assessment, even though the ten day period necessarily expires after the assessment date. Under the doctrine of Glass City Bank v. United States, the tax lien applies not only to property and rights to property owned by the taxpayer at the time of the assessment, but also to after-acquired property (i.e., to any property owned by the taxpayer during the life of the lien). The statute of limitations under which a federal tax lien may become "unenforceable by reason of lapse of time" is found at 26 U.S.C. § 6502. For taxes assessed on or after November 6, 1990, the lien generally becomes unenforceable ten years after the date of assessment. For taxes assessed on or before November 5, 1990, a prior version of section 6502 provides for a limitations period of six years after the date of assessment. Various exceptions may extend the time periods. No Risk Investor is the ultimate resource and tool for tax lien, deed, and real estate investors all over the world.  No Risk Investor takes incredible pride in its ability to help students take action, get into properties, and begin the journey to financial freedom.  No Risk Investor provides county lists, property lists, online auction lists, comprehensive training and education, an auction calendar, and online auction center, an investor community and much more for its members. Source: Wikipedia

A tax lien is a lien imposed by law upon a property to secure the payment of taxes. A tax lien may be imposed for delinquent taxes owed on real property or personal property, or as a result of failure to pay income taxes or other taxes.Unlike personal debts, tax liens on real estate "run with the land", meaning a property owner becomes responsible for payment even if the tax obligation was incurred by a previous owner. Depending on the law of the state or jurisdiction, the owner of the property may also be personally liable for payment of the taxes.Payment of a tax lien may occur through various methods: * Payment may be made directly by the property owner or, in many cases, indirectly by the mortgage holder using an escrow account. Notice is given both to the property owner and mortgage holder when a property tax is delinquent. Hence the mortgage holder will receive notice of the delinquency even if the property owner does not have an escrow account on the mortgage, and most often will pay the tax and then demand repayment from the owner/borrower and/or create an escrow account to recoup the proceeds. Doing so is necessary, as a tax lien is superior to a mortgage and the mortgage holder's lien could lose value if the property were foreclosed by the taxing agency to satisfy unpaid taxes. * If a property is sold by the owner prior to tax foreclosure by the government body, the tax lien (which is generally discovered as part of a title search) is usually paid as part of closing costs from the sale proceeds. * Procedures vary from state to state. Generally, in the event a tax lien on personal property is not paid within a specified time (and after several notices are generally given), the property may be seized and sold. On real property, one of two methods may be used: either the property may be seized and sold (a tax deed sale), or in some states, the tax lien may be offered to investors (in the form of a tax lien certificate) with an accompanying right for the investor, after a specified period of time, to institute foreclosure proceedings (a tax lien sale). No Risk Investor is the ultimate resource and tool for tax lien, deed, and real estate investors all over the world.  No Risk Investor takes incredible pride in its ability to help students take action, get into properties, and begin the journey to financial freedom.  No Risk Investor provides county lists, property lists, online auction lists, comprehensive training and education, an auction calendar, and online auction center, an investor community and much more for its members. Source: wikipedia

We've been in the tax lien and real estate education industry for quite a while and have had the opportunity to know many real estate "gurus."  Some are incredible people and great investors while others are only salesmen.  Most are just salesmen.  You may have seen John Beck's Free and Clear system on TV who says for only $300 you can buy a 3 bedroom, 2 bathroom single family home complete with a white picket fence and a golden retriever named Buddy.  Thousands of people sign up for his program every week.  He's a good salesman.  Inside Edition opened up a can on John Beck. Their whole pitch is "tax liens made easy" or "easily make millions." If you're able to easily make millions using any strategy then everyone would be doing it and everyone would be a millionaire.  Anyone can make millions but it's not easy.  Here are a few things that you must have to be successful in these strategies: Knowledge - If you don't know what you're doing then can't be successful.  Sorry it's just the truth.  Team up with someone that not only knows what he or she is doing but also is successful doing it. Diligence and Resilience - This is one of the most important characteristics to adopt.  You will run into roadblocks and while most people give up you have to press on. Positive Attitude - A negative person can hardly be successful.  Negativity is pessimistic and hopeless.  Having a positive attitude allows hope to enter your mind and will positively influence you. In Henry Wadsworth Longfellow's poem The Ladder to St Augustine he said, The heights by great men reached and kept Were not attained by sudden flight, But they, while their companions slept, Were toiling upward in the night. Although it's not easy the first time you do it, anything becomes easy the more you do it.  It is easy to make money for the person that is knowledgeable, diligence and resilient, and maintains a positive attitude.  If you were to ask Michael Jordan if it's difficult to play basketball he would laugh.  But if you asked him the first time he played he would say that it was. Tax Lien Properties and tax deeds can be a way to make millions but it won't be easy in the beginning.  But if you persist then it may become the easiest thing you ever did and making money will then become natural. No Risk Investor is the ultimate resource and tool for tax lien, deed, and real estate investors all over the world.  No Risk Investor takes incredible pride in its ability to help students take action, get into properties, and begin the journey to financial freedom.  No Risk Investor provides county lists, property lists, online auction lists, comprehensive training and education, an auction calendar, and online auction center, an investor community and much more for its members.