As its name implies, tax lien investing is a form of investment that makes use of tax lien properties. Tax lien properties are properties with tax liens because the owner of it has unpaid tax balances to the government.
When an owner of a property cannot pay its tax dues to the government agency, the government’s action for that is to put a tax lien on the property. Additionally, the government can forbid the owner of the property from selling the property to another without settling first the property’s unpaid taxes. When this happens, the owner has options from which to select. For one, he can sell his tax lien and lose the property. Secondly, the owner can find a tax lien investor who will lend him a money for paying the property’s unpaid taxes. A tax lien investor can be an individual person or a company.
When finding a tax lien investor, it is important to look for a reliable investor who will be willing to transact in a legal way. Else, when the transaction will be out of the law, the owner might just be gathering more problems around him.
What will happen is that the investor will be a creditor who will lend the property owner with the amount of money that he needs. Of course, he will use the money in settling his tax payable. At some determined future time, he should be able to pay the borrowed money plus the interest to the creditor. The property will be used to secure the debt. Mostly, payment is made by installment. When we say installment, the whole payment period is divided into shorter periods at which the debtor will pay certain portions out of the whole amount.
Yet, the investor has another option too. If he no longer likes to receive the payment in an installment basis, he can sell the cash flow note to another. The cash flow notes are the instruments that evidence the indebtedness of the debtor to the creditor. The note’s selling price varies because of a number of affecting factors which includes the appraised value of the property and the credibility of the debtor.
There are a million and one things that a real estate agent has to do to close a deal. Each sale or requisition represents a mound of paperwork that has to be processed often in duplicate or triplicate. There are meetings that have to take place and papers to draw up or amend. The entire process is a very time consuming affair that has to be done exactly right or it could delay the deal by weeks or even months. Any delay could blow the whole endeavor and be a complete waste of time. This is why finding a solid lead is so important.
Importance of a Good Lead
Real estate leads are the names and contact information of people who have expressed an interest in either buying or selling a house or piece of property. Finding good real estate leads is an essential part of the way an agent does business. In fact, one of the hardest parts of a real estate agent’s job is chasing down and working a lead. It is not as easy as many make it sound. Solid real estate leads, however, are expecting to be contacted by a real estate agent.
Complexities an Agent Must Face
Knowing how to get a real estate lead is just as important as knowing how to work it. As an agent, you will have many things going on at once. You may have multiple deals working in various stages of development. You will be looking for places to buy real estate leads, showing house and property to real estate leads, or working on a close. With all of this going on, there is little time left to develop leads on your own. This is why knowing how to buy real estate leads is such an important part of the job.
Knowing Leads Are People
Another aspect of being able to close deals quickly is having knowledge of the properties you are working. People who buy houses can be very fussy. Something as small as having an outdoor security camera or extra closet space can often be the difference whether a client will buy from you or not. Unfortunately, houses pass through the agent’s hands so quickly that he or she has to spend time familiarizing themselves with every aspect of the properties as well as knowing what the clients are looking for. With this kind of time-consuming preparation, it is important to find companies that know how to generate solid real estate leads for agents.