tax deeds course

TABLE OF CONTENTS TAX DEEDS COURSE

TABLE OF CONTENTS TAX DEED/LIEN INVESTING COURSEMODULE A INTRODUCTION

Two Types Tax Foreclosures in Georgia

The Procedure

Entity with Authority to Sell

When and Where Tax Sales are Held

How Delinquent Property Owners May Stop Sale TAX LIENS AND TAX DEEDS AND HOW THEY DIFFER

Tax Liens

Tax Deeds

Hybrids Tax Lien/Tax Deed Combinations

How Tax Liens and Tax Deeds Differ

MODULE A SELF TEST

MODULE B: PRE-PURCHASE PROCESS AND CONSIDERATIONS

DUE DILIGENCE - HOW TO RESEARCH TAX DEEDS/LIENS IN PREPARATION FOR AUCTIONResearch Procedures

WHERE TO FIND LISTINGS OF TAX SALE PROPERTIES

PURCHASE STRATEGY

Determine Categories of Investment to Concentrate On Land speculation

Single family homes

Multi-family properties Retail properties

Commercial and industrial properties

Geographical Concentration

Exit Strategy

Flipping

Renovate and sell

Renovate and sell/Lease with Option to Purchase

Renovate and sell/Contract for Deed

Renovate and rent

Land lording tips

Assignment of Tax Deeds and Liens

IV DETERMINING VALUE OF UNDERLYING PROPERTYMarket Value Approach

Income Approach

N.O.I. Calculations

Capitalization Rate

Cash Flow AnalysisReturn on InvestmentAssessing Sinking fund

Assessing Downside Risk

Determining After Repair Value Comparables

Estimating repairs and renovations

MODULE B SELF TEST

MODULE C - PURCHASING PROCESS AND CONSIDERATIONS

DELINQUENT TAX SALE PROCEDURESTax Lien Procedures

Tax Deed Procedures

The Auction/Bidding Procedure

Method of Bidding

Authority to Void Sale PROPERTY REDEMPTION

Redemption Period

Persons Entitled to Redeem the Property

Amount Payable For Redemption

How Rate of Return is affected by when property is redeemed

Redemption Formula

Legal Effect of Redemption

Redemption Period Issues Taxes that become due after the sale

Entitlement to rents and profits after the sale and repairs

Foreclosure of Right to Redeem

Notice requirements

After Right of Redemption is foreclosed

Alternative to Foreclosure of Right to Redeem

Ripening of Tax Deeds by Prescription LEGAL CONSIDERATIONS AND PITFALLSActions to Cancel Tax DeedsQuiet Title Action Conventional Quiet Title

Georgia Land Registration Act of 1917

Quiet Title Against All The World

FINANCING YOUR PURCHASE

Credit Cards

Home Equity Line of Credit

Joint Venture with Others

Private lenders

Investing in Tax Deeds using your IRA1. Traditional IRA

2. ROTH IRA

3. Truly Self Directed IRA

Hard Money Lenders MODULE C SELF TEST

MODULE D POST- PURCHASE CONSIDERATIONS POST-REDEMPTION PROPERTY INSPECTION

Renovation GuidelinesEstimating Costs DEALING WITH CONTRACTORS

Deciding on a ContractorAgreements with Contractors RENOVATION SCHEDULING

MARKETING AND ADVERTISING

OTHER IMPORTANT POST REDEMPTION CONSIDERATIONS

Risk Reduction

Beware of Subsequent Taxes

How to get rid of occupants after the right to redeem has foreclosed

Dispossessory proceedings

Other methods

MODULE E HOW TO START A TAX DEED INVESTING BUSINESS

PRE-FORMATION CONSIDERATIONS

Determine your business concept

Determine your products and Services

Decide how you will finance your start-up

Decide on business form

Determine who your associates and team members will be

Complete business plan

FORMATION CONSIDERATIONS

MODULE F- REALISTIC SIMULATION OF ENTIRE PROCESS AND PROCEDURE CERTIFICATE TESTMODULE-A INTRODUCTION Two Types of Tax Foreclosures in Georgia1) Non-Judicial Tax Sales take place without court intervention, where the foreclosure requirements are established by state statutes. The majority of tax sales in Georgia are non-judicial, and all information of this course pertains to non-judicial sales, except information specifically noted below as pertaining to Judicial In Rem Tax Sales. 2) Judicial In-Rem Tax Foreclosures are processed through the courts, which commences with a creditor filing a complaint with the court. The complaint states the reason why the court should allow the creditor to foreclose. The property owner is served and has the opportunity to be heard before the court. A judgment is entered, and a writ is issued by the court authorizing a Sheriffs sale at public auction. In Rem is latin for in a thing. Hence, in an In Rem lawsuit, the action is directed toward a specific piece of property, rather than being a claim for monetary damages against a person, for example.

Pursuant to this type of tax sale, the owner (no other person), has the right to redeem the property within sixty (60) days. If not redeemed within 60 days, the owner is automatically barred from redeeming the property and loses all right, title and interest to the property. Unlike non-judicial sales, there is no redemption premium.

Property taxes become delinquent when they are not paid on time. The amount of time before they become delinquent varies. Generally, when property taxes are delinquent, they accrue interest on the unpaid balance.

The ProcedureThe procedure for collecting delinquent taxes is typically mandated by state law. However, local county tax commissioners typically handle the process of collecting delinquent taxes for the municipalities within the county, and the state. In Georgia delinquent tax collection and tax sale procedures are embodied in the Official Code of Georgia Annotated (O.C.G.A.), Title 48.

Lien filed against delinquent propertyNotice of intent to file a lien against the property is usually required. The Tax Commissioner is generally required to notify the taxpayer in writing that the taxes are delinquent, and if not paid within thirty (30) days, a FIFA will be issued. A lien then attaches to the delinquent property. In other words, the property tax lien is secured by the real property upon which the taxes were levied. In Georgia, a lien is referred to as a FIFA. FIFA is short for fieri facias, Latin for cause it to be done. FIFAs authorize the taxing authorities to satisfy delinquent taxes by levying on and selling the delinquent taxpayers property. The term FIFA is synonymous with and used interchangeably with Tax Execution or Execution. In most states these lien documents are recorded on the docket (General Execution Docket in GA) of the Clerk of Superior Court, and filed in the deed records for the delinquent property.

Notice prior to saleBefore the property is advertised for sale, the levy officer (who is usually an Ex-Officio Deputy Sheriff) must give a 20 day written notice to the owner, any tenants, mortgagee, IRS, EPA, and any other agencies with a recorded interest (if applicable).

Advertisement and notice of sale requirement

All properties to be sold at public auction for delinquent taxes must be advertised for four (4) consecutive weeks prior to the first Tuesday of the month. These advertisements must be published in the legal organ newspaper of the county in which the property to be sold is located. The advertisements typically must show the owners name, a description of the property to be sold at the tax sale, and the amount of taxes due.At least 10 days before the tax sale, the state statute requires another written notice to be sent by certified mail informing the owner of the impending sale.Entity with Authority to Sale In Georgia, the Tax Commissioner, usually serves as Ex-Officio Sheriff and has authority to advertise and sell the delinquent property at auction to the highest bidder to satisfy the delinquent taxes due the state and the county, and in some cases a municipality.

When and Where Tax Sales are Held

In Georgia, most tax sales are held on the first Tuesday of each month, and usually between the hours of 10:00 am and 4:00 pm. The sale typically takes place on the Superior Court building steps in the county where the property is located.

How Delinquent Property Owners May Stop Sale

The selling of the property for delinquent taxes at public auction is also referred to as foreclosure of property for delinquent taxes. A delinquent property owner may stop the foreclosure sale by paying the delinquent taxes, plus any accrued interest, penalties and fees through the date of the tax sale. Another way the property owner may stop the sale is by filing a bankruptcy petition and giving notice to the Ex Officio Sheriff prior to sale of the property. TAX LIENS AND TAX DEEDS AND HOW THEY DIFFER

Tax Liens

Tax lien certificates, which are sold to investors, represent the debt due on the delinquent property. Tax Deeds represent actual ownership in the delinquent property. Tax lien certificates typically pay the investor (purchaser) an interest rate. Tax deeds typically do not pay an interest rate. However, after a period of time (redemption period) investors, generally receive title to the property if the property is not redeemed. In hybrid states like Georgia, an investor can make a high rate of interest or receive the property after the redemption period. Once a lien attaches, some states allow a third party to purchase the tax liens. Generally lien purchasers do not have property rights, such as, evicting tenants. Lien holders only have the right to receive payments to satisfy liens in the same manner as the tax commissioner or tax collector would have.

Essentially, when an investor invests in tax l