Understanding Tax Lien and Tax Deed Investing: No Fluff Free Audiobook Download by C.R. Wesley

Tax deed investing is a process of avoiding paying federal taxes by investing in real estate which has been repossessed by the government. A tax lien is a debt or levy that the government levies against a taxpayer's property. In certain situations, the property can later be sold to satisfy the debt.

The process of purchasing a tax lien or tax deed is simple. After the proper application is submitted, the state will sell your property to you at a discounted rate. Once you are in possession of the property, you are allowed to do with it as you please.

Tax deeds have been around for a longer period of time than liens, but it is still worth understanding how they work. It is important to know that in order to invest in a tax deed you must own property in your name. The property cannot be held by someone else. If you live in an area where the state has already established the value of your property, then it is possible that you can buy or sell tax deeds without registering the title to your property.

When you're 10 years old, your mom tells you that she bought a house and now she's going to be able to buy you a new bike. You're excited until you learn that the house has a tax lien on it and the bank is going to take your mom's mortgage in order to satisfy the debt. This concept is called "tax deed investing." If your parent does not want this type of cash-flow, then instead of buying a new bicycle for themselves, they can invest in stocks and bonds as an alternative.

Tax Lien Investing is a great way to make money and get liquidity. Unlike other investments, Tax Liens are not easily identifiable as they are privately held by the investor until they receive notification that the government has moved in on their investment.

You may have heard of Tax Lien investing and know that it's a good idea. But you might be wondering what the difference is between Tax Deed investing and Tax Lien investment. Tax Lien investment involves purchasing properties for cash, but not completing renovations on the property until you're ready to resell it. Tax Deed Investing is when you invest in an income-producing property like a restaurant or bar and complete renovations before flipping it for extra profits.