tag:www.taxlientruth.com,2007://1 2007-07-03T22:20:01Z Tax Lien Investing in Illinois - the Truth Movable Type 3.33 tag:www.taxlientruth.com,2007://1.12 2007-07-03T21:32:40Z 2007-07-03T22:20:01Z

You ask ten people at your work place what is Tax Lien Certificate or what is Tax Lien Investing ... you'll get no answer. Still, the competition at the tax auctions is fierce. How come then? One answer I can...

You ask ten people at your work place what is Tax Lien Certificate or what is Tax Lien Investing ... you'll get no answer. Still, the competition at the tax auctions is fierce. How come then? One answer I can think of is that the purchasing tax lien certificates type of financial transactions are not really popularized anywhere because they are to complex for an average investor to comprehend ... Or are they? Wrong answer. I believe that the true reason why most people never heard of Tax Lien purchasing is because it is too expensive to get in and so it makes no sense for media makers to advertise or popularise ... because only a few people will actually be able to follow up. Basically, this is the type of investing only rich people can afford. Another maybe absurd but true reason is that Tax Lien investing is a much safer investing option than stocks for example and it also a slow process that requires lots of home work and diligence to execute. Most people rather jump into gambling on stock market to get their adrenaline pumping in hopes to make a quick buck fast. A good analogy would be comparing water-skiing to fishing. Both water sports; you get your adrenaline pumping on water-skis but you can also break your head while if you're patient enough and can study you may catch a good size fish and actually enjoy eating it. Tax Lien Investing is just like fishing. Everyone thinks that riding a sport boat is cool (just like buying stocks) but many also believe that fishing is very hard. So, it's not that it's little known ... it's very well known among rich people and financial professionals. I believe that banks use Tax Lien as one of their primary investment tools - how do you think they can guarantee you 5% returns on your CD's or money market accounts? tag:www.taxlientruth.com,2007://1.11 2007-06-27T05:04:25Z 2007-06-27T05:27:35Z

In many states, counties hold a Tax Deed Sale on tax delinquent properties. By Illinois law, in contrast, they conduct a Tax Lien Certificate Sale first, where you only buy a right to collect on property tax but not...

In many states, counties hold a Tax Deed Sale on tax delinquent properties. By Illinois law, in contrast, they conduct a Tax Lien Certificate Sale first, where you only buy a right to collect on property tax but not the right to own the property. Then what about the Tax Deed Sale in IL and what happens to properties not sold on Tax Lien Sale (the surplus)? The answer to both questions is in public services offered by Joseph E. Meyer & Associates. Joseph E. Meyer & Associates act as the County Trustee for 77 counties in Illinois. "One of Joseph E. Meyer & Associates` central functions is serving as the Delinquent Tax Agent (trustee for taxing districts) for 77 of 102 counties in Illinois. Properties not purchased by tax buyers at the County Tax Sales are enrolled in the trustee program and managed by Joseph E. Meyer & Associates. After the redemption period expires on delinquent properties, Joseph E. Meyer & Associates obtains tax deeds on behalf of the county and sells the properties at public auction. These auctions are conducted verbally or by sealed bid." In a nutshell, they conduct the Tax Deed Sales on counties behalf. On their website you can find answers on many questions about purchasing tax delinquent property in Illinois and also find out when is the next IL surplus property auction scheduled near you. You may be already familiar with the company as their R.A.M.S (Real-Time Auction Management System) software is used by some 26 IL counties to conduct the tax lien auctions - each bidder (taxbuyer) is actually given a laptop with the R.A.M.S installed, and bids are done simply with a mouse click.]]> tag:www.taxlientruth.com,2007://1.10 2007-06-14T20:34:06Z 2007-06-14T20:36:56Z

The below is a quick overview of how the tax sale works in Illinois... (I'm still investigating all the details and will soon post more.) By Illinois law, the maximum interest rate bid is 18%. The sale is to...

The below is a quick overview of how the tax sale works in Illinois... (I'm still investigating all the details and will soon post more.) By Illinois law, the maximum interest rate bid is 18%. The sale is to the investor who bids the lowest percentage of interest. This percentage represents the interest rate that would be earned by the taxbuyer (investor) on the purchase amount during each six months of the redemption period, if the property owner redeems the delinquent tax. After the tax sale, the taxbuyer is issued a certificate of purchase (tax lien certificate), which represents a lien on the property. The property owner has a 2 to 2 ½ year to redeem, depending on property classification. If the tax lien is not redeemed by the owner, the taxbuyer must petition the Circuit Court for a tax deed, after first fulfilling all of the legal requirements. The investor may (I'd say should) also pay all unpaid taxes for the next two subsequent years at a specified time and record the payments against the tax sale. In cases where there are no bidders on a property, the IL County, as Trustee for all taxing bodies, becomes the taxbuyer at 18%. The County’s lien certificates are available for purchase by taxbuyers in the amount that the County paid, along with the 18% interest.]]> tag:www.taxlientruth.com,2007://1.9 2007-06-11T19:32:28Z 2007-06-11T19:57:05Z

So far I've found one Tax Lien Investing forum that is worth watching and be a member off. There are several participants that seem experienced and are quick to respond. While they mainly concentrate on Florida, Arizona and Texas tax...

Tax Lien Investing forum that is worth watching and be a member off. There are several participants that seem experienced and are quick to respond. While they mainly concentrate on Florida, Arizona and Texas tax lien investing, there are a few investors there who can help with Illinois as well. If you're a newbie to TLI then you'll find this forum quite helpful. To participate, sign in as a general member of the Real Estate Investing Forums. ]]> tag:www.taxlientruth.com,2007://1.8 2007-06-06T20:52:44Z 2007-06-06T22:52:50Z

Tax Lien Investing requires non-liquid funds meaning that once invested it cannot be withdrawn for some period of time. When these funds become available again is up to the property owner. Meaning that you need to put aside some cash...

Tax Lien Investing requires non-liquid funds meaning that once invested it cannot be withdrawn for some period of time. When these funds become available again is up to the property owner. Meaning that you need to put aside some cash before you start, cash that you won't use for anything else except buying tax lien certificates. This is because how tax sales works ... As a taxbuyer you purchase a tax lien certificate, you pay the amount required by county, you're issued a certificate of purchase ... and now you wait for the owner to redeem the sale. In IL, the property owner has a 2 to 2 ½ year redemption period, depending on property classification. So your money can be stuck for up to 2.5 years until redeemed. But the wait can be worth it... unless, of course, you purchased tax certificate at the 0% bid and the lien was redeemed within 6 months - then you get your cash hosed up for 6 months without making a penny on it. tag:www.taxlientruth.com,2007://1.7 2007-06-05T00:04:40Z 2007-06-08T05:13:55Z

Here are some good links to get you started with tax lien investing. More information can be found on county sites. Read these general definitions first on Wikipedia: seem to be more or less accurate info: Tax Lien definition Tax...

Tax Lien definition Tax Lien Sale definition Tax Lien Forum Some nice reading that could be most true: Tax Lien Investing Basics More on Tax Lien Investing in general: Buying tax liens online and eBay Pitfalls: How bankruptcy is affecting Tax Lien purchase How can one get in trouble by buying tax on a bad property (on the bottom): Inheriting a troubled property Tax Lien blogs: Buying Tax Liens in Maryland How much tax investors can earn in different states. Read on top - the rest is just a sales letter. Tax auction bidding interest rates and redemption periods by state More interesting reading: An overview of what happens in other states or what could happen Some general ideas but only a sales letter]]> tag:www.taxlientruth.com,2007://1.2 2007-06-02T04:41:39Z 2007-06-04T19:40:34Z

Some websites claim that in IL investors gain up to 36% a year in interest earned on Tax Lien Investment. In theory, it can be done ... but only in theory. Here's how they come up with this number... In...

Illinois Property Tax System by Illinois Department of Revenue: Then why are they willing to bid 0% ...??!! See my thoughts on this below ...]]> tag:www.taxlientruth.com,2007://1.6 2007-06-01T23:37:18Z 2007-06-04T19:39:37Z

I've seen reports stating that in many Illinois (IL) counties competition between tax lien investors is so steep that most bids have been 0%. For example, many people who has been attending Cook County, IL tax sale report that most...

I've seen reports stating that in many Illinois (IL) counties competition between tax lien investors is so steep that most bids have been 0%. For example, many people who has been attending Cook County, IL tax sale report that most parcels are bidded to 0% right upfront. As soon as auction begins, they all go for 'Zero'. There's basically no bidding. In another example, on DuPage county's website, it say black on white that in the last several years the average successful bids ranged from 0% to 3%. So, what the catch? Why do they do it? Or the more accurate question is: "How do they make money on a 0% bid?". Here are the answers that I've come up with. You're welcome to comment or provide alternative explanation... In Illinois, a tax lien buyer will bid 0% for one of three reasons: 1) Intimidated newbies: they bid 0% because they sees everyone else bidding 0%. 2) Numbers game for professionals: the more tax liens they buy the more chances they get that some of them may not redeem and they will get the properties. 3) Subsequent tax years: in Illinois, if you own a tax lien then you have a right to buy subsequent tax years at a flat rate of 12% a year, and with no competition. tag:www.taxlientruth.com,2007://1.5 2007-05-31T02:19:01Z 2007-06-04T19:39:02Z

I've decided to research Tax Sale Information for DuPage County, IL on the their website before going there in person, and I've found that the information presented is actually very helpful as it is clear and is right to the...

Tax Sale Information for DuPage County, IL on the their website before going there in person, and I've found that the information presented is actually very helpful as it is clear and is right to the point: When: the tax sale is held each November. The actual sale dates and other specifics are available at 630-407-5900. Where: in the JTK County Administration Building, 421 N. County Farm Rd., Wheaton, Illinois. Delinquent Parcels List: a list published in local newspapers in November is not the same as the list available for purchase from DuPage County to registered investors. More information is contained on the County's tax sale list. Registration rules: tax buyers must register at least 10 business days prior to the start of the sale. Registration forms are available in October, along with a list of requirements for buying at the tax sale. Attendance: you must attend the sale in order to bid. What will it cost: should you get a successful bid, your total cost will be (delinquent taxes + interest + costs of $104.00 per parcel) Payments: to be made by cash or cashier’s check only. Bidding: the maximum interest rate bid is 18%, the minimum is 0%. Bidding History(!!!): "In the last several years the average successful bids ranged from 0% to 3%." (this is by far is the most important detail). ]]> tag:www.taxlientruth.com,2007://1.4 2007-05-30T22:26:10Z 2007-06-04T19:38:33Z

Title Search online in Lake County of Illinois can be done for $150 per quarter on Lake County, Illinois Recorder of Deeds' website. You pay in advance, first time as check by mail. This amounts to $600 a year...

Title Search online in Lake County of Illinois can be done for $150 per quarter on Lake County, Illinois Recorder of Deeds' website. You pay in advance, first time as check by mail. This amounts to $600 a year ... which is not that bad providing that you conduct at least 6 title searches per year. Where I live, the average cost of a title search done by professional Title company is $100 per property. County's online database let you search by last name and by pin# which can be very convenient while you're going over the list of tax lien properties. But be careful ... not all documents are indexed by pin# or legal description. This is where you need to use your creativity to search for anything else that is hidden at first. These are just a few important categories that you can search on: - Liens - Deeds - Mortgages - Judgments What else is interesting is that they will Train you how to search online, and it's free, as I understand. So, you can arrange for a training session at the Lake County, Illinois Recorder office and you can ask, I suppose, as many questions as needed related specifically to Title Search. But keep this in mind ... in the Recorder office, they won't do the Title Search for you ... they will only assist you with obtaining the information that you ask for. See this excerpt taken from the Lake County Recorder FAQs page: ]]>