Tax Liens or Tax Deeds, Which is Better?

Free Online Articles Directory

Why Submit Articles?
Top Authors
Top Articles
FAQ
AB Answers

Publish Article

0 && $.browser.msie ) {
var ie_version = parseInt($.browser.version);
if(ie_version Hello Guest
Login

Login via

Register
Hello
My Home
Sign Out

Email

Password


Remember me?
Lost Password?

Home Page > Finance > Taxes > Tax Liens or Tax Deeds, Which is Better?

Tax Liens or Tax Deeds, Which is Better?

Edit Article |

Posted: Sep 14, 2009 |Comments: 0
|

Share

]]>

Frequently I’m asked the question what is more profitable, investing in tax lien certificates or tax deeds. Whether tax lien investing or tax deed investing is better for you depends on the state that you live in and your what your goals are. If you are looking to pick up property under market value than you are better of with tax deeds than with tax liens. If you do your homework and purchase tax liens on good properties, the chances of foreclosure are slim. And in some states, even if the lien is not redeemed, you may not be able to get the property.

In the State of Florida for example, if your lien does not redeem during the redemption period, the property goes into a tax deed sale in order to satisfy your lien. If you did your due diligence and purchased a lien on a decent property, in order to get the property, you will have to bid against other investors at the deed sale. So if you want to invest in Florida, and you are interested in obtaining property, then deed investing is the way to go, not lien investing. If, however, you are not interested in owning property, but just want to get a higher return on your money than you could in the bank, then tax liens are the way to go. In Florida, as long as you do your due diligence, you won’t have to worry about the possibility of owning the property.

If you live on the west cost, you might want to consider investing in tax deeds instead of tax liens. That’s because the states on the west cost are deed states and not lien states. Yes, you could travel to the closest lien state, but that would eat into your profits. And yes, you could invest online but then you have to deal with increased competition and higher costs. Also, would you purchase a property that you did not physically look at first? Even though with tax lien investing, you are not purchasing the property, you’re only buying a lien on the property; your lien is only as good as the property that guarantees it.

If you are interested in either owning the property or getting a very good return on your investment and you live in or near a redeemable deed state, than you should consider investing in redeemable deeds. Redeemable deeds are kind of in-between tax liens and tax deeds. You purchase the tax deed at the sale, but there is a redemption period in which the previous owner can come back and redeem the deed from you. They have to pay a pretty hefty penalty in most redeemable deed states in order to do so, and the penalty is on the total amount that you bid at the sale. In Texas the penalty is 25% and in Georgia it’s 20%. Not a bad rate of return! Another great thing about redeemable deeds is that the larger counties with bigger cities can have a tax sale a few times a year or even every month. That’s better than waiting for a tax sale only once a year sale as in most states that sell regular tax deeds or tax liens.

If you live in a state that sells tax liens, and you are not interested in purchasing property, but are interested in investing your money safely at a high rate of return, than tax lien investing is the best choice for you.

To find out more about tax lien and tax deed investing, go to: http://www.thenetreviews/tax-lien/

Retrieved from “http://www.articlesbase.com/taxes-articles/tax-liens-or-tax-deeds-which-is-better-1230121.html”

(ArticlesBase SC #1230121)

Liked this article? Click here to publish it on your website or blog, it’s free and easy!

bakari -
About the Author:

]]>

Questions and Answers

Ask our experts your Taxes related questions here…200 Characters left

Hi Joanne and thank you for the articles. A few questions: 1-Should I buy Tax Deeds using an LLC? If so what documents should I bring and how should I prep?
I have a 99yr lease on a commercial warehouse that the city is putting up for tax lien auction What happens to my lease.? does the tax lien holder have to assume that lease? Even if foreclosed later
If my house is sold for the taxes and there is also a lien on the house for a debt do I have to pay on the lienif sale of house does not cover it

Rate this Article

1
2
3
4
5

vote(s)
0 vote(s)

Feedback
RSS
Print
Email
Re-Publish

Source:  http://www.articlesbase.com/taxes-articles/tax-liens-or-tax-deeds-which-is-better-1230121.html

Article Tags:
tax, tax lien, tax liens, tax deed, tax deeds, tax lien homes, housing deals, meridian housing deals, tax lien investing basics, tax lien investing secrets, tax lien investing guide, tax lien investing pitfalls, tax lien investing arizona, tax lien investing ca

Related Videos

Latest Taxes Articles
More from bakari

Learn about the Single Status on a Tax Return

Learn about the single status on a tax return in this video that will help you prepare for tax returns. (01:18)

Learn about the 2007 Tax Rebate

Learn about the 2007 tax rebate in this video that will help you prepare for tax returns. (02:40)

Learn about the Alternative Minimum Tax

Learn about the alternative minimum tax in this video that will help you prepare for tax returns. (01:27)

How to Claim Tax Credits

Learn how to claim tax credits in this video that will help you prepare for tax returns. (00:40)

How to Know if You Qualify for Tax Credits

Learn how to know if you qualify for tax credits in this video that will help you prepare for tax returns. (01:13)

Tax Menace… Behave!

If you fall into the segment of taxable income earners you would be always wondering at different levels of executions as to what should be your tax planning for it to offer you the maximum returns as a tax payer.

By:
tax accountantl

Finance>
Taxesl
Dec 28, 2010

irs tax lawyers ease the extremely complicated area of tax

There could be several reasons for selecting tax lawyer rather than tax consultant because there are several kinds of experts providing tax concerning services,

By:
Wesley Murphyl

Finance>
Taxesl
Dec 28, 2010

Full Information about Withholding Tax 2010 Online

Here we provide full information about withholding tax 2010, withholding tax table 2010 advantage of withholding taxes and more.

By:
denialnicholl

Finance>
Taxesl
Dec 28, 2010

How To Find Best Tax Calculator for Tax Calculation Online

Get best tips for choose tax calculator for all categories of taxes like salary tax calculator, free tax calculator, tax refund calculator, IRS tax calculator, tax deduction calculator, state tax calculator, federal tax calculator and more.

By:
denialnicholl

Finance>
Taxesl
Dec 28, 2010

New York State Tax Rate 2010 For NY State Tax Filing Online

New York state tax rate 2010 help you for NY state tax filing online. E files your 2010 NY state tax and gets biggest tax refund. Now days it’s very easy to e file your NY state taxes and it’s fact that online tax filing process is very fast and smooth.

By:
denialnicholl

Finance>
Taxesl
Dec 27, 2010

Disability Tax Credit Benefits For Parkinson’s Disease – A Great Relief To Sufferer’s

Parkinson’s disease or PD is a neurological disorder and is one among the many conditions that constitute the motor system disorders. The British doctor James Parkinson called it the ‘shaking palsy’ and it was his path breaking efforts in recognising and distinguishing the symptoms of this disorder that gave it his name.

By:
Emely Porterl

Finance>
Taxesl
Dec 27, 2010

Disability Tax Credit Benefits For Multiple Sclerosis – Helping You Ease Your Worries

Multiple sclerosis or MS is a disorder that targets the nervous system and particularly affects the spinal cord and the brain. The nerve cells in the body are usually protected by a covering called myelin which is mainly responsible for the overall good health of the nerves. If MS hits you, then this myelin is damaged.

By:
Emely Porterl

Finance>
Taxesl
Dec 27, 2010

Disability Tax Credit Benefits For Narcolepsy – Get You Dues Today

Have you seen or come across people who fall asleep suddenly in the middle of a conversation? It may have seemed amusing to you but is a classic example of the daytime sleep disorder called narcolepsy.

By:
Emely Porterl

Finance>
Taxesl
Dec 27, 2010

Coping With Stress: Ways of Coping With Stress Effectively

To deal with stress, people engage in many things. There are a variety of ways in coping with stress.But what is stress anyway? Technically speaking, stress is a condition wherein the property of a human being to maintain a constant, stable condition is disrupted. It is either a physical or physiological stimulus can produce negative mental or physical reactions. These reactions can lead to exhaustion or illness.

By:
bakaril

Self Improvement>
Stress Managementl
Sep 24, 2009
lViews: 565

Hypnotherapy Review- A case for hypnotherapy for health

A basic structure for hypnotherapy is the best guide you can have, giving a simple guideline on hypnosis and hypnotherapy. As a basic rule, you should let things happen in a natural way if things vary a bit but still produce the trance and result which you have set out to obtain.

By:
bakaril

Self Improvement>
NLP Hypnosisl
Sep 19, 2009

Golf Hypnosis Review – Is Golf Hypnosis your Ultimate Advantage In Golf?

Most golfers are looking for ways to gain an edge or cut their handicap. That’s why many crafty golfers have turned to the power of conversational hypnosis to give
them that special advantage.The thing is golf is almost entirely a mental game. Let me explain why…

By:
bakaril

Sports and Fitness>
Golfl
Sep 19, 2009
lViews: 104

Power of Conversational Hypnosis Review – Does it Really Work?

Most people searching for hypnosis products online realize one recurring trend: Almost all hypnosis products reviewers highly recommend the Power of Conversational Hypnosis Course. In fact, having read many of such reviews and being interested in learning hypnosis, I decided to buy the course. In addition, not only do hypnosis reviewers rate the course highly, I also noticed that Doctors, Psychiatrists and many, and many master hypnotists claim that the course is the # 1 hypnosis product online.

By:
bakaril

Self Improvement>
NLP Hypnosisl
Sep 17, 2009
lViews: 108

How To Learn Hypnosis Online

Hypnosis is an art that require a certain set of skills in order to master and do hypnosis successfully. These skills are quite attainable when the correct instruction and study of hypnosis has been focused on.

By:
bakaril

Self Improvement>
NLP Hypnosisl
Sep 16, 2009

Dry Psoriasis: How to Deal With Psoriasis

Anyone who suffers from psoriasis knows the heartache and embarrassment that goes along with the disease. Psoriasis is a skin condition that causes dry, scaly itching, rashes, and large red wounds. The rash is not pretty and the weepy wounds can be hard to cover up. The embarrassment can cause you to feel uncomfortable in public and have you dressed from head to toe, even in the hottest months of summer.

By:
bakaril

Health>
Acnel
Sep 14, 2009
lViews: 291

Tax Liens or Tax Deeds, Which is Better?

Here are tax lien secrets. If you live in a state that sells tax liens, and you are not interested in purchasing property, but are interested in investing your money safely at a high rate of return, than tax lien investing is the best choice for you.

By:
bakaril

Finance>
Taxesl
Sep 14, 2009

Add new Comment

Your Name: *

Your Email:

Comment Body: *

Verification code:*

* Required fields

Author Navigation

My Home
Publish Article
View/Edit Articles
View/Edit Q&A
Edit your Account
Manage Authors
Statistics Page
Personal RSS Builder

My Home
Edit your Account
Update Profile
View/Edit Q&A
Publish Article
Author Box

bakari has 7 articles online

Contact Author

Subscribe to RSS

Print article

Send to friend

Re-Publish article

Articles Categories
All Categories

Advertising
Arts & Entertainment
Automotive
Beauty
Business
Careers
Computers
Education
Finance
Food and Beverage
Health
Hobbies
Home and Family
Home Improvement
Internet
Law
Marketing
News and Society
Relationships
Self Improvement
Shopping
Spirituality
Sports and Fitness
Technology
Travel
Writing

Finance

Accounting
Banking
Credit
Currency Trading
Day Trading
Debt Consolidation
Insurance
Investing
Loans
Mortgage
Personal Finance
Real Estate
Taxes
Wealth Building

]]>

Need Help?
Contact Us
FAQ
Submit Articles
Editorial Guidelines
Blog

Site Links
Recent Articles
Top Authors
Top Articles
Find Articles
Site Map

Webmasters
RSS Builder
RSS
Link to Us

Business Info
Advertising

Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2010 Free Articles by ArticlesBase.com, All rights reserved.

Find More Tax Deeds Articles