Merritt Island, FL -- (ReleaseWire) -- 06/17/2019 --People who want to invest in tax liens must know the rules for the tax sale before they invest, said Ted Thomas, a tax lien investing expert who has helped people across the world retire early and make big profits.
All 50 states and the District of Columbia have tax lien sales. These sales give investors the chance to buy property for pennies on the dollar or make as much as 36 percent annual interest on their investment.
"It sounds great. It really is. You can make big profits by investing in tax liens. But, you have to know the rules. We have 50 states and DC and each one has different rules for the tax sales," Mr. Thomas said.
He pointed to Georgia and California as two states with different rules. In the Peach State, tax lien sales can only be held on the first Tuesday of the month. That means Georgia has only 12 days a year when tax lien sales are held. The Golden State lets the local tax collector decide when to have the sale.
"That is a great and easy-to-understand example of how the rules are different from state to state. At the same time, every tax collector has local rules for how the sale is held in his community," Mr. Thomas said. "One of the big rules is how you pay for your winning bid. Some communities require cash or certified funds. If the sale is online, you may have to pay by letting the tax collector debit your account, wire the money or send certified funds by express delivery. Very few tax collectors accept personal checks at a tax sale. In Georgia, the tax collector decides how bidders must pay."
How the sale is handled can vary within a state too. California allows the tax collector to have the sale online, in-person or both at the same time. Georgia's tax sales are done in person. For an in-person sale, the bidder must be present or have someone representing him at the sale. If the sale is online, the bidder can be anywhere in the world.
Some other rules investors need to know include:
- How to register for the sale. Some places require deposits and advance registration. Others just allow someone to show up and start bidding when the sale begins.
- What taxes are sold. Mr. Thomas again pointed to Georgia as an example. The Peach State allows the County Commission, a City Council and the Board of Education to collect property taxes. Each one of these boards can have a separate tax sale.
- Payment terms. In-person sales usually require all winning bids must be paid by the end of the sale. Online sales sometimes have a grace period so the buyer can send in a payment.
"You can make big profits investing in tax lien sales. But you have got to know the rules. You must know what you have to do to bid in the sale and pay for anything you buy. If you don't know the rules, you can lose your deposit and the chance to make big profits." Mr. Thomas said.
About Ted Thomas:
Ted Thomas is a leading expert in tax lien sales and tax defaulted properties. He conducts seminars across the US and many other countries.