Zero Risk Real Estate: Creating Wealth Through Tax Liens and Tax Deeds

Protecting Your Tax Lien Interest

Tax lien investments are pretty easy to babysit. There is really nothing special you have to do to protect your interest except track the redemption dates. If and when the tax lien redeems, the county will simply send you a check. If it doesn’t redeem, then you may have to go through the foreclosure process to secure your interest, but that’s discussed in a later section. You don’t have to foreclose, but if you did your research correctly, you’ll want to in order to increase your profits. This is why we call it the Zero Risk system. You make money no matter what happens to your tax lien.

Make sure you do keep good records of your tax lien purchases though. Keep a simple filing system with a separate file for each property by its address. You will have to have a tickler system in place to remind you of important dates. Any standard calendar software will work. You don’t need to spend a lot of money for fancy software to get this done. Google has a calendar feature that does a fine job of keeping track of all of these dates for you and sending you e-mails and pop-ups when certain events are due. And it’s free! Remember, the county will not remind you of anything—redemption dates, filing dates, foreclosure windows, other tax liens, or any other required legal actions—so make sure you are organized and keep these dates and events backed up and secure.

As a lien holder of record, you will be required to be notified of any actions involving the property. ...