SKW Central Tax Lien 1

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SKW Central provides training on tax liens and deeds. For more information go to www.skwcentral.info

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SKW Central Tax Lien 1

  1. 1. Sean Keegan Walker Active Real Estate Investor
  2. 2. Who Am I? • Real Estate Investor • Done Over 1000 Transactions • Own Hundreds Of Tax Liens • Real Estate Educator & Trainer
  3. 3. How Did I Start?
  4. 4. How Did I Start?
  5. 5. What Is A Tax Lien? In most jurisdictions, when a property owner is late on paying real property taxes, the county or municipality will issue a tax lien on that persons property. To collect the money needed, the county will then sell that lien to an investor.
  6. 6. What Is A Tax Deed? A Tax Deed sale gives the buyer immediate ownership of the property. This ownership often requires the filing of a foreclosure or quiet title action to have marketable title but it is not subject to redemption by the delinquent tax payer.
  7. 7. Why Tax Liens And Deeds?• Low entry level investment• High Potential Interest Returns• Foreclosure Opportunities ( ) Redeemed by Owner (90+%) Unpaid Property Tax Lien Taxes Free & Clear Property Involuntary Motivated Sellers!
  8. 8. County Cashflow Problem• Counties need tax revenue to operate! • County Staff, Judges, School Teachers, Fireman, Police • Schools, Roads, Public Health, Water, Sewer, Snow Removal, Etc.• Some counties have in excess of $100 mm in Annual Delinquent Property Taxes
  9. 9. Who Invests In Tax Liens• Banks• Hedge Funds• Seasoned Financial Planners• Stock Brokers• Smart Money
  10. 10. Most Common Questions#1 - How Do I Learn About Them?#2 - How Do I Find The Liens & Deeds?#3 - How Can I Fund My Investments? Savings/Self Directed IRA Disposable Income Private Investor/Partner Profit From Other Deals
  11. 11. SKWCentral.com
  12. 12. Three Kinds Of States • Tax Lien States • Tax Deed States • Hybrid States
  13. 13. About Lien States1. A property owner fails to pay the property tax on their property.2. After sufficient attempts have been made to collect the taxes, thecounty will advertise the Tax Lien for sale.3. A public auction will be held and the Tax Lien will be sold to thehighest bidder. That bidder will be given a Tax Lien Certificate thatincludes all past due taxes, penalties and interest.4. This certificate is an interest bearing security against the property onwhich the taxes are due.5. In the owner of the property pays the taxes, the certificate holder willbe paid all interest and penalties.6. If the homeowner never pays the taxes, eventually the holder of thatcertificate may have the right to foreclose on the home and take theDeed.
  14. 14. About Deed States 1. A property owner fails to pay the property taxes on their property. 2. When the taxes go unpaid, they formally become delinquent. 3. After sufficient attempts have been made to collect the taxes, the county will advertise the Tax Deed for sale. 4. A public auction will be held and the Tax Deed will be sold to the highest bidder. That bidder will be given the actual Deed to the property. 5. In some cases, the homeowner may still have a short time to redeem after the sale; otherwise, the investor becomes the legal owner of the property.
  15. 15. About Hybrid States • Hybrid States Sell Both Liens And Deeds • Redeemable Deeds Florida 18% Interest 2 Yr Redemption Period Minimum 5% Penalty
  16. 16. Types Of Liens/Deeds You Can Invest In • Raw Land • Commercial Property • Industrial Properties • Single Family Homes * • Developed Lots * • Multi-Family • Agricultural Land
  17. 17. You’re Choice:Decide On A Method • Online Auctions • Live Auctions • Secondary MarketGet Trained On SKWCentral.Com Now
  18. 18. SKW Tutorials
  19. 19. Here Is How I Do It:• Large Buys In The Secondary Market• Average Spend of $100,000• Discount By Buying In Bulk
  20. 20. States I’m Currently Buying In:New York Hybrid StateMost Counties Are DeedSalesTax Lien Sales To Institutions10-12% Interest
  21. 21. States I’m Currently Buying In:Florida Hybrid State18% Interest2 Yr Redemption PeriodMinimum 5% Penalty
  22. 22. States I’m Currently Buying In:Ohio Hybrid StateMost Counties Are DeedSalesTax Lien Sales ToInstitutions18% Interest
  23. 23. States I’m Currently Buying In:Kentucky Lien State12% Interest1 Yr Redemption Period11 Yr Expiration
  24. 24. Some Liens I Currently Own
  25. 25. How I Find Liens/Deeds?• Network In The Industry – NTLA• Call Every County In The Country
  26. 26. Network, Network, Network…“LINKEDIN IS NOT RESPONSIBLE FOR A USER’S MISUSE ORMISAPPROPRIATION OF ANY CONTENT OR INFORMATION YOU POSTIN ANY LINKEDIN COMMUNITY FORUMS SUCH AS THE LINKEDINBLOG, GROUPS OR ANSWERS.” – Linked in
  27. 27. What Due Diligence Do I Do?• Thorough And Unemotional• List Good And Bad• Assess Risk/Fair Market Value• Title And Legal Issues(Pull A Pre-Lim)• Guilty Until Proven Innocent
  28. 28. Redeemed vs. Not Redeemed$1 Million in Tax Liens Certs (1000 Parcels) 900 Redeemed Liens = $1.45 Million In Total Redeemed Value (a 45% Profit For the Investor/Fund) 100 NON-Redeemed Liens That Are Set To Go To Foreclosure (HOME RUN)90+% of Liens Get Redeemed – The Rest Are Set To Foreclose
  29. 29. Buying 100 Liens At A Time…I do the same due diligence
  30. 30. Designed For First Time Investors
  31. 31. How I Make Money… Remember… I’m An Investor Too! A Typical Lien On My Site Lien Lien Acquisition Redemption Cost My Price Value To You$50-$80 $150 $100Covers My: Risk, Overhead, Due-Diligence, Cost Of Money, etc.
  32. 32. I Brought A Handful Of Liens With Me
  33. 33. Common Exit Strategies Tax Lien Redemption Foreclose/Deed Too Good To Be True? The Reality Is Better.
  34. 34. Exit Strategies – “Show Me The Money” Wholesale (Quick Money) Home Owner Payment Plan Tax Lien Certificate Cert Redeems (Interest $) Leveraged Buy Out Foreclose
  35. 35. The “Leveraged Buy Out” - 118 Bissell St W Due Diligence • 118-120 Bissell St West Syracuse, NY 13204 • 4-Plex $1800 Mo/Gross Rents • 2008 Tax Lien Certificate $4214.16 • Due Diligence Showed Other Delinquent Taxes • Confirmed Tenancy $$Purchase Transaction• Offered $5000 Counter Offer $25,000• $11,000 “Walk Away” Price• Sold As-Is With The Seller Paying Water Bill• Paid Subsequent Tax Years $20,176.50• $15,000 Proposed Deferred Maintenance Cash Out $35,765.42
  36. 36. The “Leveraged Buy Out” – Exit $$ Wholesale “Flip” Transaction 12/21/2011 – 2/29/2012
  37. 37. Remember… When Do You Start?
  38. 38. Tax Liens Add Value & Stability Your Real Estate Portfilio Tax Certs Rental Properties Fix & Flips Notes
  39. 39. Take Action Today! We Make It Easy!
  40. 40. What’s Next…• Webinar Tuesday (Next Week) – What to do once you own the lien? – The Foreclosure Process – Lucrative Exit Strategies
  41. 41. What’s Next…• 50 Liens – Prices are $1,000 to $10,000 Fill out the form by my table, and I’ll email you the details to join the SKW Webinar

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