Avoiding Mistakes: Things to Watch Out for in Purchasing Tax Liens

 

Have you ever heard of anyone speak about an issue of a tax lien? You may be wondering what a tax lien is and what it represents to an individual financially. To explain, If you can’t pay a federal tax bill and you also fail to setup a payment plan the government can try to collect the money by issuing a lien on your assets.

To issue a lien means that the government is placing a claim on your assets, be it your house, mortgage, car or even income. An individual can also be issued a tax lien through failure to pay property taxes or other state or local taxes. Tax liens are enforced to ensure that citizens comply with tax rules. Counties, federal and state governments require taxes, and one of the ways to ensure compliance in taxes is through the issue of tax liens on unpaid property.

In purchasing Tax liens, one thing to note is that the immediate purchase of a tax lien does not indicate an immediate ownership of the property. Here are some things to note about purchasing Tax Liens on property.

Most real estate investors go into the business making terrible mistakes. In an attempt to purchase tax liens one lethal mistake investors make is failing to make the right preparations. It is very important to be fully prepared before you attend the tax lien auction. To be fully prepared means that you are checking important details of the list. The first being, making sure to  register ahead of time and paying any fees needed for the sale. Reviewing a  list of the properties up for auction is important, in looking for a proper guide to the property available.

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Financial competence is also important and an often forgotten element of investing in tax liens. If you do not have enough money to purchase a certain tax lien, it might be counter-productive to move on with the investment process.

To learn more about the lethal mistakes real estate investors make, read more on this article by Bankrate

Important Factors To Consider In Building A Real Estate Career

I’ve always advocated for getting into real estate investment early, if this is the industry you are interested in. I started my business at a young age and it took me a lot of time and learning to really gauge what niche part of real estate I wanted to get into. Part of the learning process came with reading a lot of material, sitting in on seminars and seeking out professionals who were in a higher place than I am in the industry. Mentorship is just as important as the learning process, because it motivates the apprentice to learn from the master. These days, young people face numerous challenges when they try to get into real estate investment. Factors like student debt, and motions in the economy affect the choices a lot of young people make. You don’t have to be limited by these external forces. There are many ways you can shape your practice, and build systems in your personal life to facilitate your entry into real estate investing.

Some of the challenges young people face in real estate are intricately tied to their financial habits and what opportunities they have fiscally. Here are some reasons why young people have problems getting into real estate investing:

  • Lack of Motivation in pursuing real estate investment goals
  • Inadequate resources to understand traditional and modern real estate best practices
  • Not treating real estate investment as a school of thought
  • Financial limitations in the form of debt, lack of savings and unemployment

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Aside from these factors mentioned above, treating real estate investment as an education in and of itself is the best way to begin learning about the industry. You will not get very far if you don’t treat this as a learning experience. Education does not begin or end in the four corners of your academic institution. To run a business, you must treat education as a life long practice . Here are some of the best ways to be involved and learn about the industry:

  • Motivation
  • Mentorship
  • Time Management and System building
  • Financial Education
  • Industry Education
  • Practice Pilot

In my next post, I will write on each practice and how this can be effective in building your business. Thanks for stopping by.

To learn more about the important factors to consider in building a real estate career, click here 

Dustin Hahn is an internet entrepreneur, tax liens and deeds consultant and the owner of Dustin Hahn International. To Learn more about Dustin, visit his adventure site.