Tax lien and tax deed are high potential investments, which are acquired by state auctioned delinquent properties. These investments are considered as one of the high return investments in real estate sector. The state acquires the properties due to the negligence of homeowners to pay their required taxes. These properties are auctioned to the investors around the nation to collect the taxes on behalf of the homeowners through tax liens and tax deeds. Tax lien and tax deeds serve the same purpose but the investment procedure between these two is entirely different.
Tax Lien Investment:
The states that support tax liens will organize the buying of tax lien properties. Local authorities are authorized to place liens on any delinquent real estate property. The properties are considered as delinquent when the homeowners neglect to pay their property taxes even after the warning notice served to them. The owner is not allowed to sell or refinance the property unless the debt is cleared.
An investor purchasing the liens should pay the unpaid taxes of the homeowners. They can get their property back from the investor by paying the complete tax amount with the interest rate assigned by the state authority. These interest rates are the highest in the nation, where an investor can gain huge profits through tax lien properties.
Tax Deed Investment:
People might think that tax deed investment works as same as tax liens but there is a large difference between them. The States that allow tax deed investment does not authorize any kind of local authorities to auction the lien properties. Instead, the properties of homeowners, who failed to pay the property taxes, are completely allowed for sale to the public. The investor can buy complete property through legal procedures from state authority without any trouble. The properties are sold at less market value and the investor should clear the unpaid tax debt of the property while buying the tax deed properties.
About REI Holdings:
REI Holdings is a reputed investment Agency providing assistance and resources for struggling investors. They help investors in acquiring the best tax lien properties without any difficulties. Their experience and valuable connections among the prominent people will be very useful for your investing carrier. REI Holdings have a large inventory with tax lien properties like a storefront, single family residential, apartment buildings and many more. For more information, visit https://rei-holdings.com/
2912 Executive Parkway Suite 120
Lehi, Utah 84043