Traders Round Table

TAX LIENS: High Returns-Low Risk Investment

Level: ALL

Format:

3 x 2-Day Sessions over a 1-Year Period

Brief:

Tax liens deal with the payment of delinquent property taxes owed to the US counties which many US home owners cannot pay. This method of property tax payment recovery goes back 300 years, in force before the US constitution.

In purchasing the tax liens from the county, the investor pays the outstanding property tax due on behalf of the property owner, and in return, the county will pays a return rate on the lien that is purchased. The investor also receives the right of first lien on the property.

This investment vehicle is available to companies or private
individuals and the investor deals directly with the US government (or state counties), with the absence of a middleman.

Low Risk:

Every tax lien purchased is backed up by equity (i.e. the house or building of which the Lien is placed upon) of many, many times the purchase price of the liens. It is next to impossible to lose the principal investment amount. If the tax liens are not redeemed, the investor owns the property outright, free and clear of all encumbrances. The bank which owns the mortgage on that property will pay up for the liens otherwise they will lose the loan taken out on the property.

Typical returns:

Around 10-18% per annum, with minimal effort required once the process is setup.

This course covers:

• Part 1 –
  • Tax Liens Overview
  • Setting up a US bank account
  • Obtaining a Tax Identification Number (TIN)
• Part 2 –
  • Criteria for selection of Liens
  • The bidding process
  • Mentoring for the auctions
  • Participation in 3 auctions/year

Dr. John Heng