tax deeds course
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Investing tax deedsTRANSCRIPT
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