Tax Liens Vs Tax Deeds – Which is the Best Investment?

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 what your goals are. If you are looking to pick up property under market value than you are better off 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 coast, you might want to consider investing in tax deeds instead of tax liens. That’s because the states on the west coast 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 as in most states that sell regular tax deeds or tax liens.

Smart Rental Property Investments – How to Make Them (Part 1)

Has anyone ever told you that investing in rental property is easy? Yep, just buy a property with no money down, wait a year and then sell it to the next person in line for a hefty profit, all while collecting monthly rent checks and not getting your hands dirty. Sounds great – ok, my article is finished, finito. But wait, there’s one small fact that’s missing from that prior advice – right, it’s called reality, oops!

The Status of the Real Estate Market Today

The days of getting easy financing from lenders to buy investment properties that experienced double-digit annual appreciation have come and gone. The real estate landscape is currently correcting itself to get back to normal, where the number of buyers in the market equals the number of sellers. Although corrections can be painful, fortunately they don’t last forever. In the long term, they provide market stability and opportunities for buyers. And this is actually healthy – it’s the markets way of applying the brakes to keep the train on the tracks.

Today, as a rental property investor, you’ll need a solid base of knowledge on the subject to be successful, especially in this challenging real estate and economic environment. Knowledge of the business will “let you know what you’re getting into” so that you can avoid potential problems and investment mistakes.

Basically, making smart rental property investments involves taking the following steps:

  • Evaluate your employment situation: First and foremost, the stability of your job and income stream is a key factor that reduces your real estate investment risk. How stable is your industry, employer and the economy in your area? If you were to lose your job tomorrow, how long would it take for you to find suitable employment again? Could you collect unemployment benefits if you were laid off, and for how long?
  • Take inventory of your current financial status: Getting your financial house in order and paying down credit is needed to qualify for lender financing to purchase property. As a result of the “sub-prime” lending mess, lenders have tightened their belts with stricter qualifying standards for borrowers. You’ll need to have enough money saved for a down payment. If not, you’ll have to develop a disciplined budget and savings plan to accumulate the necessary funds.
  • Get pre-approved for a mortgage with a lender: This will make you a serious buyer in the eyes of sellers and will determine “how much house” you can afford. And, shop around with several lenders to get the best deal – this can save you a lot of money, especially over the long run.
  • Develop a real estate investment plan: Just like a “road map” is needed to get you through unknown territory to your ultimate travel destination, a real estate investment plan is needed to help you realize your investment goals. Learning the fundamentals of how to develop a practical investment plan that’s tailored to your individual goals is essential for achieving investment success.
  • Realize that all real estate is “local”: Get a feel of the real estate market conditions in the areas where you’d like to buy investment property. This includes getting actual sales price (not just list price) data of recent investment property sales in the local areas. Having your finger on the pulse of the local rental property market is paramount for investing wisely.

We’ll stop and catch our breath here so that the information can be absorbed. Part 2 of this article completes this list with several more recommendations that will “round-out” the major steps needed to make smart rental property investments.

Business Center Lease

All sizes and types of businesses require a huge capital investment in the starting phase of a business to buy new business space or equipment. Those who’ve started out on a new business will not be able to invest the huge amounts required for their business center. If you’re in such a situation you can opt for business center leasing solutions which are the most popular option for start-up businesses nowadays. A business center is the place from where you can operate your business and achieve optimum workflow. Moreover, it is a viable option for small and large businesses to maintain a competitive edge.

Acquire new lease space or upgrade the existing one with the business center leasing solution. With this ideal solution, you can have an office space with equipment, fixtures, furniture, furnishings, and technology required for your office needs. In addition, business center leasing supports soft costs related to equipment purchase including training services and installation services. Thus all your office needs can be clubbed under a single lease through business center lease. The idea behind the business center lease is to make one payment a month. This will help you grow your business with minimal monthly expenses.

Business center lease will give you an added advantage for the short term when compared with long term obligations. Business center leasing options will help you to

o Lower your tax bill
o Preserve your capital
o Preserve your personal credit rating
o Make your business remain competitive
o Avoid future inventory hassles
o Keep pace with the modern business world
o Manage the balance sheet and improve cash flow
o Have flexible payment terms
o Save your bookkeeping expenses

Keeping the needs of today’s businesses in mind, business center leasing providers offer finance lease as well as true lease. The leasing period may vary from 1-5 years. Attractive offers are available for business center leasing owners to

o Buy-out the leasing business center
o Extend the leasing terms
o Return the business center

A workspace with the latest equipment plays a vital role for the success of every business, large or small. Get a business center lease on a competitive budget.