Guest Speaker: Joanne Musa
Joanne Musa, “the Tax Lien Lady,” is a Tax Lien Investing Expert who teaches people to invest in safe, highly profitable, tax lien certificates and tax deeds. Her goal is to help clients build profitable portfolios in tax lien certificates or tax deeds. She urges people to get started in educating themselves in this arena with her free report “7 Steps To Building Your Profitable Tax Lien Portfolio.” Her specialties include tax lien and tax deed investor, trainer, coach and mentor, author, weightlifting coach, internet marketing. Her books include “The Truth About Tax Lien Investing” and “Tax Lien Investing Secrets: How You Can Get 8% to 36% Return on Your Money Without the Typical Risk of Real Estate Investing or the Uncertainty of the Stock Market!
What you’ll learn in this episode:
*When Joanne started, she didn’t have a financial background or good credit. Her knowledge of real estate was limited to having purchased and sold a condo. Her goal was to be a real estate investor
*To do tax lien investing, you don’t need good credit or a lot of cash
*She did stock options for a while but ultimately lost the money she made. She ultimately switched gears from the stock market to real estate. She experienced early frustration with trying to buy a foreclosure and wanted to find another way to invest her small amount of money
*She first read about tax lien investing in books like Robert Allen’s “Multiple Streams of Income” and Robert Kiyosaki’s “Rich Dad Poor Dad.” She found other information but no specific information about her state, New Jersey
*Not all states sell tax liens and each state that does goes about it differently. She learned that instead of having big county tax sales once a year, NJ has tax sales, and each municipality and taxing district has their own tax sale
*The nuts and bolts of tax liens and how people make money with them
*Basically, investors buy the liens in an auction, paying the amount of taxes owed in return for the right to collect back that money plus an interest payment from the property owner. The winner of a tax lien certificate is typically the investor willing to accept the lowest interest rate
*It’s a win win win solution because the property owner gets more time to come up with the money. The investor gets a high return on their money and they’re in the first position to get paid.
*It’s a secure investment because the real estate guarantees it and the rate they’re getting is determined by the government
*Every state government sets the statutory rate, and in each state there are penalties for non-payment of taxes. It can be a straight penalty or annualized interest. There’s also a specified period of time that the delinquent property owner has to pay that back
*Some states like Florida and NJ have online tax lien sales, but purchasing them in person is a better option for many reasons
*Some of the different approaches taken by different states, which Joanne explains in her state by state guide
*Why tax lien investing is not a well-known option despite having been around for 200 years! One is that nobody has incentive to let you know it exists. Financial planners want to work with their own products
*You only need three things to invest in tax liens: cash (you have to pay at the sale in certified funds); a U.S. bank account; and a tax ID number (Social Security # or EIN #)
*You can use a self-directed IRA to buy tax liens and get tax deferred and tax free. The retirement account has to have its own EIN number
*The biggest mistake people make in tax lien investing is not doing their due diligence to make sure the property is valuable
*The truth behind the infomercial claims about “buying a tax lien for $40 and getting this $100,000 house. Many of the properties are vacant for years before they get sold in tax sales
*It’s important to look at the property first and see what you’re dealing with
*Joanne’s advice on how to get started: find the right place to invest in because some states sell liens, some sell the houses and some sell redeemable deeds
*How much money you have to invest determines which state you can invest in
*Breaking down the statutory rates and tax lien sales annual calendars for various states, including Florida, New Jersey, Arizona, Missouri, Mississippi, Kentucky and Illinois
*Tax liens don’t come up on a credit report
*In her live courses, Joanne shows her students the results of past tax sales to find out the good places to invest, and then they look at other factors like demographics in that state
*Joanne’s $47 Tax Lien Investing kit with free video training, from her $2000 overall course
*Details of her training events
Resources:
Grab a FREE Copy of Lance’s Best Selling Book “How to Make Big Money in Small Apartments” Here.