Self-directed investors are increasingly drawn to tax lien investments because of the potential for impressive returns from little initial investment.

Tax lien auctions and sales result when a land owner fails to pay taxes on a property. The county can auction the tax lien to recover that money rather than waiting for the delinquent property owner to pay up. The investor who buys the lien can than charge the property owner the interest and penalties that the county would normally receive; if it’s not paid, the investor could become the property’s owner.

Investing in these liens can be a lucrative way to build your self-directed IRA if you keep a few pointers in mind, according to Joanne Musa, who has been called “The Tax Lien Lady,” at the 2011 Equity University Networking Conference.

Joanne will share her strategy during a free webinar at 8 p.m. January 26. Here’s a look at what seasoned investors do before they attend tax lien auctions or sales:

Think like an experienced tax lien investor

Those who have bought tax liens know there are a few things to keep in mind:

• The process varies by state. Each state goes about tax lien sales or auctions in its own way. Be sure you know the variances before jumping in. Joanne outlines the differences in her webinar.
• There are different types of investment options and strategies to employ, depdending on your ultimate goal.
• Some due diligence is required to make sure you’re getting the best deal, but there are face-to-face and internet sources that can help ease the process. Joanne will share her list of quality sources and where to find them.

The results can be well worth the effort. One client, John D., described some of his tax lien successes, saying some of them yield him a 12-percent yearly rate of return. (Read more about his notable investments here.)

With the insight from this exclusive webinar, you’ll have the foundation you need to build tax-free profits like John.

Sign up now and gain Joanne’s inside information to get the best tax lien deals!

Filed under: self directed IRA, Tax liens on January 24th, 2012