Arizona
Tax Certificate–For Short Term Gains
An Arizona property owner failing to pay real property taxes faces the first lien on the property tax in the form of Arizona tax lien certificates. The Arizona tax certificate is the first lien issued by the local county government. The liens are sold to the investors at auctions as tax lien certificates.
In order to acquire Arizona tax certificates the first step would be to buy a recent Arizona tax lien list. It is important to thoroughly research the tax lien lists before making a move. Moreover, the
tax lien investing tutorials provide a better insight to get the basic understanding of the property – its area and location.
Once the property owner pays the tax, county government redeems the tax lien certificate to the owner through check (for the certificate purchase), along with 16% interest pro-rated on a monthly basis. In case the property owner is unable to pay off the tax liens within three years, the purchaser of the
tax lien certificate has the right to foreclose on the tax lien. Then the property can be sold to gain considerable profit.
The certificates for tax lien are sold in the yearly auction (typically in February) or when the auction is over. At this time nearly 60% of the tax lien certificates remain. Each year new tax lien lists are released with hundreds and thousands of delinquent properties to choose.
The best time to buy Arizona tax lien certificates is of course the yearly auctions in February. At this time of the year the competition is less, which lowers the rate of interest down from the usual 16%.
Tips for buying Arizona tax lien certificate
One of the major considerations while purchasing tax lien certificates is the type of property to be purchased. There are some who prefer land as these are easy to acquire. There are others who are likely to choose single family homes as these can be easily flipped. Of course, there are those who prefer commercial property that can be rented to accomplish great cash flow.
Before deciding on the property, it is crucial to have due diligence on the property on which the tax lien certificate is to be bought. The due diligence varies from property to property, so it is imperative to thoroughly learn on the property, to ensure great profit from it.
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