Can I Sell My House With A Tax Lien? - YouTube

Welcome back, I'm Ted Thomas. And the episode is  all about "Can I sell my house with a tax lien  

certificate?" Well, I'm going to answer that right  away. The answer is you can always sell your house,  

and I'll tell you all the details in just a minute.  I'm going to give you a few other details about  

how to make some money, I know you want to learn  how to do that. I'll show you some inside secrets,  

and before I close out, I'll tell you a couple of  things to avoid so that you don't make mistakes at  

the auction. Some big mistakes take place and  I'll come right back with all those answers.

Okay well. let's get right into it. Can I sell my  house with a tax lien? Well, yes you can sell your  

house with a tax lien. However, when you do sell  your house to the tax lien, you're going to get  

cash money in. you're not going to be able to grab  that money and go, what you're going to have to do  

is the property has to be transferred. No property  gets transferred in any county until all the taxes  

are paid. And that's why we tell people to buy  them, because their money is always going to be  

protected. So, if you're concerned and you have  a house with a taxing on it and you want to sell  

it, you definitely can sell the property. But, just  understand that as part of the proceeds, as part  

of the cash you get in, it will go to pay that  tax lien. You can't walk away from a tax lien  

if you own property. The transfer won't take place.  Every property has to have a transfer tax paid  

of some kind. And when that is activated, they're  going to realize that the tax lien on the property  

hasn't been paid. So, let's tell you how the local  government works. The local government has been  

around for maybe hundreds of years. Or if you're in  the western part of the United States, maybe over  

100 years. And during that hundred years, they've  learned a lot of tricks. And the one trick that  

they learn more than any other is to collect taxes.  So, people are not going to get away without paying  

taxes. It doesn't matter whether you had a tax lien  against the property or you were in a state where  

they had- you defaulted on the taxes and they were  going to confiscate the property. Go ahead and sell  

your property so, that you can get some money out  of it. But, when you do sell, it won't matter what it  

sold for. If it sold for more money than you paid  or less money than you paid, whatever it sells for,  

that tax lien will be paid. You're not going to  get away without paying a tax lien certificate.  

So, if that's bad news, I'm sorry for that news for  you. But, if it's good news, if you're an investor,  

so if you're an investor asking that question, now  you realize how secure a tax lien certificate is.  

If a tax lien is issued on property, the  government will get their money. So, if you buy  

the government's tax lien certificate, wow! You're  in good shape because you're going to get paid.  

And that's the promise the government actually  makes. They said, "Buy the tax lien, so that we have  

some money to take care of government employees.  And if you'll do that, we'll pay you a high  

interest rate and we'll make sure you're going to  be okay. That your money's safe and secure." Now, how  

can your money be safe and secure? Because what you  get when you buy a taxing certificate is you get  

the lien that the government owed on that property.  So, the property can't be sold, as I just told you,  

without you getting paid. So, no matter what happens,  you will get paid on your tax lien certificate or  

you'll get the actual property. Now, if you get the  actual property because the lien has been wiped  

out, now you'll have purchased the property for 2  or 3 percent of its value. Wouldn't you like  

to own a property for 2 or 3 percent of its  value? Absolutely, you'd like to do that. So, this is  

happening thousands of times across the United  States. Now, I don't care what state you want to  

talk about, we can talk about Texas where they pay  as much as 25 percent. We can talk about Seattle, Washington  

where what they do is they sell the property at  auction and they give the property owner plenty  

of notice, and when that money comes in, what are  they going to do? They're going to pay their taxes.  

If you buy a tax deed in the state of Washington,  you're going to get possession of the property.  

Once you have possession, it's yours you can do  anything with it. You can remortgage it, you can  

run the price up, you can hold on to it. It's your  property. So, you're getting the idea. So, this always  

works. Let me tell you about Georgia, Georgia has  169 counties. Staggering amount of counties. They're  

going to have 169 auctions every month. And people  that buy at those auction properties are buying a  

redeemable deed. Now, what is a redeemable deed? That  simply means if you buy that property, you're going  

to give the auctioneer whatever you bid and you  win. You give your money to the auctioneer, so now  

your money's protected. You don't have to worry  about that. But, you can't take possession for one  

solid year. So, for one solid year, even though  your money's up, you have to wait. Now, any time  

that the property owner comes in to pay their tax,  they have to give you back all your money plus 20 percent. 

Now, where are you going to make 20 percent in one year? So,  how does a tax lien work? How's the tax deed work?  

Well, I'll explain them both. A tax lien certificate  is a result of a property owner not paying their  

tax. So, half of the states, when those properties  don't pay the tax, the state rule is that they're  

going to sell a tax lien so that the local county  can get money. So, in those states they simply say,  

"Stay in the house, Mr. Property Owner. You're not  going to lose your house, but we're selling a  

tax lien certificate because we need money to run  the government." So, they sell that tax lien. You can  

find lists of those in the newspaper, you can find  them online, you can find them at the county. There  

will be thousands of tax certificates available  depending upon the state and the county. So, anybody  

can buy one. You can buy one for 50 dollars, 500  hundred or 5 thousand. It's all numbers,  

all the way up to 50 thousand dollars. So, you  can buy a tax lien certificate. When you buy that,  

the only reason you're buying it is because you  want a cash return. You are not getting a property.  

You're not gonna have to go cut the grass, you're  not gonna have to be painting the property, you're  

not going to talk to tenants. All you're going  to do is buy a certificate that makes you money.  

All right so, those tax lien certificates are  very popular especially with older people.  

Especially when I tell you that a tax certificate  is predictable, it's certain and it's secure. It's  

predictable because you know they're going to  have the options. It's certain because you know  

what the rate of return is going to be, and it's  secure because it's secured by the property. Now,  

what do I mean as secure by the property? Folks,  if those people don't pay the tax certificate,  

you're going to be awarded the property. You will  own the property, and you will have only paid  

the back taxes to get it. Now, visualize that. You  only paid the back taxes. Now, what you're worried  

about is that you're going to get a property  with a mortgage. You don't want that. So, what do  

they do? The mortgage is always wiped out at a tax  lien auction or tax deed auction. So, you're kind  

of getting the idea. So, think about what I've said.  There's a nice opportunity for you. All right, what  

is the tax deed? Well, half of the state say, "Wait a  minute. If you don't pay the tax, we're not going to  

be benevolent. We are going to seize your property."  When they say seize, they're going to confiscate it. 

They're going to take it away from you. What are  they going to do with it? They're going to put  

it out and sell it at auction so they can get  the taxes. So, they're going to boot you out of  

the property, then they're going to sell it at  auction. And when they money from that auction,  

its going to be used to pay the taxes. In all cases,  the county wants all properties on the tax roll.  

But if you have defaulted, you're not on the tax  roll. They need properties on the tax roll to pay  

all their bills. So, I hope you got the idea of why  they have tax liens and why they have tax deeds. So,  

let me button it up by giving you a couple of ways  to make sure that you don't lose money. If you're  

going to a tax lien auction, you need to think,  "What is it am I buying?" So, you're looking at a list  

which you got at the county or you got in the  newspaper. It's just going to give you a number.  

If you take that number and put in your computer, it  will show a property because every property has a  

number. All right, what if the property isn't there?  That there was a hurricane and it got blown away?  

What if it was a flood? What if it was burned up?  So, don't buy anything, don't bid on anything. Don't  

do it unless you know there's something there. Now,  some auction brochures will have a picture. Don't  

trust the picture. What if it's 5 years old? What  if it's when the property looked in good shape  

and hasn't been taken care of? So, you need to  have someone look at it. Either hire a company to  

do that, hire a broker, hire an Uber driver to go out  there and take pictures. But, don't buy any property  

without seeing the property. Then the other problem  that I watch at auctions all the time is people  

don't pay attention. They just think that because  it's an auction, they're going to get rich. Forget  

that. You need to know what you're going to do with  that property. So, you need to have an exit strategy.  

So, again look at the property and then figure out  what it's going to sell for. Now, how do you figure  

that out? Well, we have lots of classes. We could  teach you how to do that. But, the county will tell  

you the tax assessed value. You could go to Zillow  and see values in the neighborhood. You could use  

the geographical information, satellites from  aloft and look down on it and tell you everything  

you want to know. In other words, there's lots of  places from Zillow, to the local MLS, to figure out  

if the property has value. It might not have value  and you're bidding on it. So, you need to know your  

exit strategy so you don't over bid. It's not  unusual to go to an auction and hear 2 things.  

One is "Gladys," he looks at his wife, "let's go look  at what we bought." Those people might lose their  

assets. Think about what I just said. So, that's the  kind of mistake people make. Don't let that be you.  

Now, I'm Ted Thomas. I want to do something to you  to help you out. Right below me, and you can get  

it, it's absolutely free, it's a 1 hour video. That 1 hour video is kind of a quick start. Tell  

you about tax liens, deeds. I only have 6 or 8  minutes on these videos to tell you things, so you  

can subscribe and come to another one anytime you  want. We'd love to have you, but if you want to get  

a 1 hour video just right below me now. Go ahead  and check out that 1 hour video. I'm Ted Thomas.