Sweet 16 Tax Sale Websites Swipe File, this includes the swipe file, plus a 5 point tax lien investing checklist and a video:
https://www.jayconner.com/taxlien/
How To Make Money From Real Estate Without Tenants, Toilets,
Termites, or Negotiating Deals!
Joanne Musa, the Tax Lien Lady, Author of Tax Lien Investing
Secrets: How You Can Get 8%-36% Return on Your Money Without the Typical
Risk of Real Estate Investing or the Uncertainty of the Stock Market!
https://www.taxlienlady.com/
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Jay Conner (00:05):
Well, hello everybody there! And welcome to another episode of real estate investing with Jay Conner. I’m Jay Conner. Your Private Money Authority and the host of the show. And welcome! If this is your very first time, a very special welcome to you. You may be watching on the iTunes or listening on iTunes or Google Play. You may be watching live right now. If your live stream on mobile Youtube channel or on facebook. Or wherever you’re coming in from, we’re glad to hear or have you. If this is your first time here on Real Estate Investing with Jay Conner, we’ve talked about everything that relates to real estate from finding deal to funding deal. To automating your business. To all kinds of real estate. Single family houses, self storage, land, commercial deals. You name it. So today, for the first time since we launched the podcast. And my lands! We’ve now exceeded probably over 300,000 downloads and listens since we’ve launched. Got a subject today that we have not talked about on the show.
Well, hello everybody there! And welcome to another episode of real estate investing with Jay Conner. I’m Jay Conner. Your Private Money Authority and the host of the show. And welcome! If this is your very first time, a very special welcome to you. You may be watching on the iTunes or listening on iTunes or Google Play. You may be watching live right now. If your live stream on mobile Youtube channel or on facebook. Or wherever you’re coming in from, we’re glad to hear or have you. If this is your first time here on Real Estate Investing with Jay Conner, we’ve talked about everything that relates to real estate from finding deal to funding deal. To automating your business. To all kinds of real estate. Single family houses, self storage, land, commercial deals. You name it. So today, for the first time since we launched the podcast. And my lands! We’ve now exceeded probably over 300,000 downloads and listens since we’ve launched. Got a subject today that we have not talked about on the show.
Jay Conner (01:26):
So I’m very excited to have my special guest. And if you’ve been following me, you know, that I have the best amazing guests and experts as it relates to real estate investing. Well, today is no different. I’m so excited to have my special guest who is known online as The Tax Lien Lady. And she’s the author of the books, “The Truth About Tax Lien Investing” and the Amazon best seller, “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”. And we know about that folks! The uncertainty of the stock market. And she’s also a contributing author to the Amazon best seller, “Trust Your Heart: Transform Your Ideas Into Income” Now, my special guest, she’s been featured in the online magazine, NuWire Investor and Foreclosure News Report. She’s also been on real estate investing website, www.REIWired.com and for ForeClosure.com and addition to that, REIBluePrints.com. And she was mentioned in the January 2013 issue of Forbes Magazine. Our special guest, also known online as Tax Lien Lady, her articles on Tax Lien and Tax Deed Investing appear all over the internet. Her easy to follow step-by-step guide – nonsense approach and to investing in tax lien certificates and tax deeds.
So I’m very excited to have my special guest. And if you’ve been following me, you know, that I have the best amazing guests and experts as it relates to real estate investing. Well, today is no different. I’m so excited to have my special guest who is known online as The Tax Lien Lady. And she’s the author of the books, “The Truth About Tax Lien Investing” and the Amazon best seller, “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”. And we know about that folks! The uncertainty of the stock market. And she’s also a contributing author to the Amazon best seller, “Trust Your Heart: Transform Your Ideas Into Income” Now, my special guest, she’s been featured in the online magazine, NuWire Investor and Foreclosure News Report. She’s also been on real estate investing website, www.REIWired.com and for ForeClosure.com and addition to that, REIBluePrints.com. And she was mentioned in the January 2013 issue of Forbes Magazine. Our special guest, also known online as Tax Lien Lady, her articles on Tax Lien and Tax Deed Investing appear all over the internet. Her easy to follow step-by-step guide – nonsense approach and to investing in tax lien certificates and tax deeds.
Jay Conner (03:05):
And it earned her the reputation of being the most trusted authority on tax lien investing in the United States. Now her website is www.TaxLienLady.com. She has actually helped thousands and thousands of investors around the world answering their questions about tax lien investing and tax lien certificates and tax deeds. And has helped her subscribers and students to profit from this little nutting and misunderstood real estate investing strategy. Now, when you stay on here to the end of the show, you’re actually, we’re going to tell you, she’s going to give away for free her Amazon bestseller book, and you’ll learn how to get that. So with that, I’m so excited to introduce everyone here to Joanne Musa! Joanne, welcome to the show!
And it earned her the reputation of being the most trusted authority on tax lien investing in the United States. Now her website is www.TaxLienLady.com. She has actually helped thousands and thousands of investors around the world answering their questions about tax lien investing and tax lien certificates and tax deeds. And has helped her subscribers and students to profit from this little nutting and misunderstood real estate investing strategy. Now, when you stay on here to the end of the show, you’re actually, we’re going to tell you, she’s going to give away for free her Amazon bestseller book, and you’ll learn how to get that. So with that, I’m so excited to introduce everyone here to Joanne Musa! Joanne, welcome to the show!
Joanne Musa (03:56):
Hey Jay! Thanks for having me. I’m honored to be here today.
Hey Jay! Thanks for having me. I’m honored to be here today.
Jay Conner (04:01):
Absolutely. I’m excited to have you on Joanne. And by the way, we’ve got live participants right now that have already tuned in. So everybody, if you are watching the live stream, of course, this isn’t going to work. If you’re listening on iTunes or Google play, but if you are on the live stream right now, we welcome your questions about tax lien investing. So right now, if you’re on the live stream, go ahead and say, hello and where you are tuning in from. I see we’ve got Lori and we’ve got Paula on so far. So everybody say hello as you’re coming in. So gentlemen, before we dive in to this tack this world of tax lanes, how’d you get started in real estate?
Absolutely. I’m excited to have you on Joanne. And by the way, we’ve got live participants right now that have already tuned in. So everybody, if you are watching the live stream, of course, this isn’t going to work. If you’re listening on iTunes or Google play, but if you are on the live stream right now, we welcome your questions about tax lien investing. So right now, if you’re on the live stream, go ahead and say, hello and where you are tuning in from. I see we’ve got Lori and we’ve got Paula on so far. So everybody say hello as you’re coming in. So gentlemen, before we dive in to this tack this world of tax lanes, how’d you get started in real estate?
Joanne Musa (04:43):
Oh, well, you know, I always wanted to be a real estate investor, but the one thing that I didn’t know how to do, I don’t have a, I didn’t have a background in finance or real estate. And I, I didn’t know how to negotiate. So one thing I didn’t like to do is negotiate. Back in 2000, I was reading books by, I was reading books by Robert Allen about, you know, no money down and real estate investing and multiple streams of income. And I tried go into foreclosure sales and sending out pre-foreclosure letters. And this was at a time when people could get loans easily and pay off what they owed. And I just back then, I didn’t know how to do it. Now, since then, I’ve learned how to do it. But what I found out was that I could invest in tax liens and go to these tax lien sales, and I didn’t have to negotiate with anybody. And I didn’t need a lot of money because back then, I didn’t know how to use other people’s money. I didn’t have good credit and I didn’t do deals. You have to have cash. And of course, if you know how to get back, then I didn’t know how to do that. So one thing I did know is that I had enough money. I could go to these tax sales and buy these tax lien certificates. And that they had a high rate of return, no matter what the market did. I still got the same rate of return on my investment and it was backed by real estate. So it was a safe investment, as long as I did my homework, which I learned in the very beginning. You do have to make sure that it’s good real estate that you’re buying a lien on.
Oh, well, you know, I always wanted to be a real estate investor, but the one thing that I didn’t know how to do, I don’t have a, I didn’t have a background in finance or real estate. And I, I didn’t know how to negotiate. So one thing I didn’t like to do is negotiate. Back in 2000, I was reading books by, I was reading books by Robert Allen about, you know, no money down and real estate investing and multiple streams of income. And I tried go into foreclosure sales and sending out pre-foreclosure letters. And this was at a time when people could get loans easily and pay off what they owed. And I just back then, I didn’t know how to do it. Now, since then, I’ve learned how to do it. But what I found out was that I could invest in tax liens and go to these tax lien sales, and I didn’t have to negotiate with anybody. And I didn’t need a lot of money because back then, I didn’t know how to use other people’s money. I didn’t have good credit and I didn’t do deals. You have to have cash. And of course, if you know how to get back, then I didn’t know how to do that. So one thing I did know is that I had enough money. I could go to these tax sales and buy these tax lien certificates. And that they had a high rate of return, no matter what the market did. I still got the same rate of return on my investment and it was backed by real estate. So it was a safe investment, as long as I did my homework, which I learned in the very beginning. You do have to make sure that it’s good real estate that you’re buying a lien on.
Jay Conner (06:45):
I got you! So you started doing the tax lien business in what year?
I got you! So you started doing the tax lien business in what year?
Joanne Musa (06:51):
Oh, 2002.
Oh, 2002.
Jay Conner (06:53):
Oh, wow!
Oh, wow!
Joanne Musa (06:54):
Yeah. It’s been a little while.
Yeah. It’s been a little while.
Jay Conner (06:58):
So let’s first be clear and let everybody make sure we’re on the same page. Exactly. What is a real estate tax lien?
So let’s first be clear and let everybody make sure we’re on the same page. Exactly. What is a real estate tax lien?
Joanne Musa (07:11):
Oh, good question. Good question. Well, you know that your property taxes are depended on by the County or municipality where you live, who collects your property taxes. They need them to pay school teachers, build roads, pay other civil servants, like firemen and policemen. So what do they do if people don’t pay their taxes? Because they need that money to meet their budget. So in some States, I live in Pennsylvania now. When I started this, I lived in New Jersey. But in Pennsylvania, if I don’t pay my taxes, the next year my property will be sold out from under me in a tax sale. They’ll just sell the property. Okay, well, they’ll let you go a year delinquent. And after that, they’re gonna, they will, they are going to try to get you to pay it. But if you don’t, they’re going to put your property in a tax sale.
Oh, good question. Good question. Well, you know that your property taxes are depended on by the County or municipality where you live, who collects your property taxes. They need them to pay school teachers, build roads, pay other civil servants, like firemen and policemen. So what do they do if people don’t pay their taxes? Because they need that money to meet their budget. So in some States, I live in Pennsylvania now. When I started this, I lived in New Jersey. But in Pennsylvania, if I don’t pay my taxes, the next year my property will be sold out from under me in a tax sale. They’ll just sell the property. Okay, well, they’ll let you go a year delinquent. And after that, they’re gonna, they will, they are going to try to get you to pay it. But if you don’t, they’re going to put your property in a tax sale.
Joanne Musa (08:09):
But some States, when I lived in New Jersey, they don’t sell your property. They give you a little bit more time to come up with the money. So what they do after your year delinquent, they sell your taxes to investors. They have an auction. Where they auction your taxes and different States do it different ways. Some they bid down the interest rate because in New Jersey, the penalty, if I don’t pay my taxes, if I went up property in New Jersey, there is a penalty that I will pay when I finally pay it, which is 2% to 6% penalty. And there’s also an interest per annum interest rate of 18% per annum. That I will have to pay. When I finally do pay those taxes. Well, guess what? The investor gets that. So that’s why they are so willing to buy those taxes because where else are they going to get that kind of investment return on their money?
But some States, when I lived in New Jersey, they don’t sell your property. They give you a little bit more time to come up with the money. So what they do after your year delinquent, they sell your taxes to investors. They have an auction. Where they auction your taxes and different States do it different ways. Some they bid down the interest rate because in New Jersey, the penalty, if I don’t pay my taxes, if I went up property in New Jersey, there is a penalty that I will pay when I finally pay it, which is 2% to 6% penalty. And there’s also an interest per annum interest rate of 18% per annum. That I will have to pay. When I finally do pay those taxes. Well, guess what? The investor gets that. So that’s why they are so willing to buy those taxes because where else are they going to get that kind of investment return on their money?
Joanne Musa (09:07):
Not in the bank today. Not, years ago, you used to be able to get that in a CD, but not anymore. They can maybe get that in the stock market, but look, what’s been going on lately. It’s a little bit risky to do that. Now, but when you buy somebody’s taxes, if they don’t pay you in a certain amount of time, that’s called the redemption period. Then what happens is the investor gets to foreclose on that property. Now that is their leverage that they’re going to get paid. So you have that property is your guarantee that you’re going to get paid. Okay. So that’s why it’s very important to do your research and make sure it’s a good piece of property because there’s a lot of reasons why people don’t pay their taxes. If I have an unbuildable lot next to my house, that I know that I can’t build on, can’t do anything with, and maybe it’s not next to my house.
Not in the bank today. Not, years ago, you used to be able to get that in a CD, but not anymore. They can maybe get that in the stock market, but look, what’s been going on lately. It’s a little bit risky to do that. Now, but when you buy somebody’s taxes, if they don’t pay you in a certain amount of time, that’s called the redemption period. Then what happens is the investor gets to foreclose on that property. Now that is their leverage that they’re going to get paid. So you have that property is your guarantee that you’re going to get paid. Okay. So that’s why it’s very important to do your research and make sure it’s a good piece of property because there’s a lot of reasons why people don’t pay their taxes. If I have an unbuildable lot next to my house, that I know that I can’t build on, can’t do anything with, and maybe it’s not next to my house.
Joanne Musa (10:02):
Maybe it’s, you know, a block away or a town away or a state away, but it’s not buildable. Why do I want to keep paying taxes on it? Well, I’m going to get tired of that after a while. So I’ll just stop paying. So you don’t want to come along and pay those type of taxes. You want to pay taxes on a property that is useful in some way. You know, it doesn’t have to be a three bath, two bedroom house. If it’s a buildable lot, that’s good commercial property is good, but it’s just something that you’d be able to sell or something that has value.
Maybe it’s, you know, a block away or a town away or a state away, but it’s not buildable. Why do I want to keep paying taxes on it? Well, I’m going to get tired of that after a while. So I’ll just stop paying. So you don’t want to come along and pay those type of taxes. You want to pay taxes on a property that is useful in some way. You know, it doesn’t have to be a three bath, two bedroom house. If it’s a buildable lot, that’s good commercial property is good, but it’s just something that you’d be able to sell or something that has value.
Jay Conner (10:37):
I got you! So comparing tax lien investing to other types of real estate investing, why is, why have you chosen tax lien investing? Why is it a good investment versus say, other strategies?
I got you! So comparing tax lien investing to other types of real estate investing, why is, why have you chosen tax lien investing? Why is it a good investment versus say, other strategies?
Joanne Musa (10:56):
Well, it’s easy to get into because you don’t need a lot of money. You don’t need good credit. It is a real asset that it’s backed by a real asset, which is the property. And it’s in the state that I lived in, in New Jersey, there were tax sales all the time that I could go to. So that’s how, it was an easy entry. It’s an easy entry point for most people to get in.
Well, it’s easy to get into because you don’t need a lot of money. You don’t need good credit. It is a real asset that it’s backed by a real asset, which is the property. And it’s in the state that I lived in, in New Jersey, there were tax sales all the time that I could go to. So that’s how, it was an easy entry. It’s an easy entry point for most people to get in.
Jay Conner (11:28):
Right! So is it correct in saying, when a real estate investor invest in a tax lien, they’re either going to earn the interest or they’re going to be able to claim the property and do whatever with the property that they want to, is that right?
Right! So is it correct in saying, when a real estate investor invest in a tax lien, they’re either going to earn the interest or they’re going to be able to claim the property and do whatever with the property that they want to, is that right?
Joanne Musa (11:49):
Yeah. And I just want to let everybody know that, I know years ago there were these infomercials and people think that you could buy a lien for maybe a couple hundred dollars and then get a hundred thousand dollar house. It doesn’t usually work that way. Think about it, if you own, let’s say you own a house you know, that’s a $150,000 or $200,000 house, and you have you know, maybe $5,000 of back taxes that you owe. Are you going to let that property go for those back taxes? If it’s a decent property? Probably not. It doesn’t happen very often. So it’s not really a way, buying tax liens is not a way to get property for pennies on the dollar. There are some States like my state, where they actually sell the deed in the sale. And those are the sales where you could actually get the property, but are you only going to pay the back taxes? Probably not because these are auctions and the price of the deed gets spit up at the sale. So can you buy it for less than you would pay if you went through the normal channels? Yes, you can. But it’s more like 50 cents on the dollar, not pennies on the dollar anymore.
Yeah. And I just want to let everybody know that, I know years ago there were these infomercials and people think that you could buy a lien for maybe a couple hundred dollars and then get a hundred thousand dollar house. It doesn’t usually work that way. Think about it, if you own, let’s say you own a house you know, that’s a $150,000 or $200,000 house, and you have you know, maybe $5,000 of back taxes that you owe. Are you going to let that property go for those back taxes? If it’s a decent property? Probably not. It doesn’t happen very often. So it’s not really a way, buying tax liens is not a way to get property for pennies on the dollar. There are some States like my state, where they actually sell the deed in the sale. And those are the sales where you could actually get the property, but are you only going to pay the back taxes? Probably not because these are auctions and the price of the deed gets spit up at the sale. So can you buy it for less than you would pay if you went through the normal channels? Yes, you can. But it’s more like 50 cents on the dollar, not pennies on the dollar anymore.
Jay Conner (13:17):
Well, I’d tell you 50 cents on the dollar. You know, if it’s a good property, is a fantastic deal. I mean, I buy a lot of, a lot of single family houses and those that we rehab, which were most of them we buy them at 30 to 40 to 50 cents on the dollar. So that’s, it may not be pennies, but it’s, you know, 50 cents is 50 cents. Right?
Well, I’d tell you 50 cents on the dollar. You know, if it’s a good property, is a fantastic deal. I mean, I buy a lot of, a lot of single family houses and those that we rehab, which were most of them we buy them at 30 to 40 to 50 cents on the dollar. So that’s, it may not be pennies, but it’s, you know, 50 cents is 50 cents. Right?
Joanne Musa (13:41):
Yeah. And also these, like you alluded to, when you say most of the time we have to rehab them. Most of these properties have been neglected. Some of them are even knocked down. So, and you know what I’m talking about when you buy stuff for 30, 40 cents on the dollar, you know, you kind of get what you pay for.
Yeah. And also these, like you alluded to, when you say most of the time we have to rehab them. Most of these properties have been neglected. Some of them are even knocked down. So, and you know what I’m talking about when you buy stuff for 30, 40 cents on the dollar, you know, you kind of get what you pay for.
Jay Conner (14:03):
That’s right!
That’s right!
Joanne Musa (14:03):
Yeah. So you just have to think about how much more money you got to put into it before you can turn around and make a profit when you’re buying a tax deed. But what I use tax liens for is a way to invest my money at high return. Without, as my, the title of my book says without the typical risk of real estate investing or the uncertainty of the stock market.
Yeah. So you just have to think about how much more money you got to put into it before you can turn around and make a profit when you’re buying a tax deed. But what I use tax liens for is a way to invest my money at high return. Without, as my, the title of my book says without the typical risk of real estate investing or the uncertainty of the stock market.
Jay Conner (14:26):
Right. Right. Well, now you’ve already mentioned it, then you sort of chuckled when you said it and that was you found out early on that you really need to investigate the property to make sure it’s a good property. And that’s probably the biggest mistake that new people in the tax lien investing do is not checking it out. So what’s your process on investigating property to see if it is a good property and what’s the definition of a good property?
Right. Right. Well, now you’ve already mentioned it, then you sort of chuckled when you said it and that was you found out early on that you really need to investigate the property to make sure it’s a good property. And that’s probably the biggest mistake that new people in the tax lien investing do is not checking it out. So what’s your process on investigating property to see if it is a good property and what’s the definition of a good property?
Joanne Musa (14:57):
Yeah. Good question. What’s the definition of a good property? Well, that kind of depends on what you’re after. As I mentioned before, I like building lots. Remember you’re paying the taxes on a property. So, and the taxes on a building lot are typically lower than they would be on a lot with a building on it. And anything that could be resold, anything that has value to another buyer is something that I would consider a good property. So commercial properties can be good properties. Residential properties can be good properties. And sometimes vacant land. If it’s buildable. Especially building lots can be good properties. But what you have to check is what I like to check is the assessment value. I check the assessment of the property. And then I will check the market value of the property. So you might want to check comps on the property. And then another thing that I like to check, especially if I’m investing in a place that I’m not familiar with is I want to check the crime rate in the area. So you’re not only checking out the property, you’re checking out the area. And Jay, you’re shaking your head. Cause this sounds just like real estate investing. Doesn’t it?
Yeah. Good question. What’s the definition of a good property? Well, that kind of depends on what you’re after. As I mentioned before, I like building lots. Remember you’re paying the taxes on a property. So, and the taxes on a building lot are typically lower than they would be on a lot with a building on it. And anything that could be resold, anything that has value to another buyer is something that I would consider a good property. So commercial properties can be good properties. Residential properties can be good properties. And sometimes vacant land. If it’s buildable. Especially building lots can be good properties. But what you have to check is what I like to check is the assessment value. I check the assessment of the property. And then I will check the market value of the property. So you might want to check comps on the property. And then another thing that I like to check, especially if I’m investing in a place that I’m not familiar with is I want to check the crime rate in the area. So you’re not only checking out the property, you’re checking out the area. And Jay, you’re shaking your head. Cause this sounds just like real estate investing. Doesn’t it?
Jay Conner (16:22):
It sure does! Now, do you invest in the tax liens, just right around in your area where you can drive by the house or do you invest in areas that are outside of your area?
It sure does! Now, do you invest in the tax liens, just right around in your area where you can drive by the house or do you invest in areas that are outside of your area?
Joanne Musa (16:37):
Well, I’ve done both, but I will say I do. I always recommend. And I do like to look before you buy. Whether it’s just a tax lien you’re buying or whether it’s a house, you know, a deed that you’re actually buying the house. And the reason is because if you look at pictures online, you might see a house there, but when you drive by it, that house might be gone. There I’ve been, I’ve been there, done that. And a good thing, I looked first because the house wasn’t, that was supposed to be there. That was there in the picture wasn’t there. Maybe it burnt down, maybe it got knocked down.
Well, I’ve done both, but I will say I do. I always recommend. And I do like to look before you buy. Whether it’s just a tax lien you’re buying or whether it’s a house, you know, a deed that you’re actually buying the house. And the reason is because if you look at pictures online, you might see a house there, but when you drive by it, that house might be gone. There I’ve been, I’ve been there, done that. And a good thing, I looked first because the house wasn’t, that was supposed to be there. That was there in the picture wasn’t there. Maybe it burnt down, maybe it got knocked down.
Jay Conner (17:16):
Maybe that’s, maybe that’s probably stop paying taxes.
Maybe that’s, maybe that’s probably stop paying taxes.
Joanne Musa (17:22):
Well, exactly, exactly. So you don’t, and with land, you always have to look at it first because you can’t tell what it looks like from a picture or a map. You don’t know what the grade is. You don’t know how wet it is, how Rocky it is. You don’t know if it’s buildable and sometimes you don’t even know if you look at it, if it’s buildable. So you have to check with land. I also recommend checking with the zoning officer. To make sure that it’s buildable. And you also want to look for things like road access. You want to make sure it passes zoning regulations, that you have the right road access, that it has a utility access. That utilities are there or where the property is. It’s different things that you look for.
Well, exactly, exactly. So you don’t, and with land, you always have to look at it first because you can’t tell what it looks like from a picture or a map. You don’t know what the grade is. You don’t know how wet it is, how Rocky it is. You don’t know if it’s buildable and sometimes you don’t even know if you look at it, if it’s buildable. So you have to check with land. I also recommend checking with the zoning officer. To make sure that it’s buildable. And you also want to look for things like road access. You want to make sure it passes zoning regulations, that you have the right road access, that it has a utility access. That utilities are there or where the property is. It’s different things that you look for.
Jay Conner (18:18):
I know, I know you’ve got a ton of students. I mean, how long have you been teaching what you do?
I know, I know you’ve got a ton of students. I mean, how long have you been teaching what you do?
Joanne Musa (18:26):
Well, I’ve been doing this since 2002 and in 2004, I started, how I got started was I was investing in New Jersey and I ran into somebody else who was trying to figure this out the same time I was. Well he asked me if I would work for him and he had a lot more money than I did to invest. And he was after the larger liens and I was after the smaller one. So I said, yeah, sure. If I could buy liens for me while I’m buying them for you, I’ll do that. And in New Jersey, unlike it is in some other parts of the country, the tax liens are not big County tax liens. They’re small municipal liens. Municipal sales. So there are over 550 municipalities in New Jersey and each one has a tax sale once a year. So on any given day, there could be a few tax sales all the same time on the same day.
Well, I’ve been doing this since 2002 and in 2004, I started, how I got started was I was investing in New Jersey and I ran into somebody else who was trying to figure this out the same time I was. Well he asked me if I would work for him and he had a lot more money than I did to invest. And he was after the larger liens and I was after the smaller one. So I said, yeah, sure. If I could buy liens for me while I’m buying them for you, I’ll do that. And in New Jersey, unlike it is in some other parts of the country, the tax liens are not big County tax liens. They’re small municipal liens. Municipal sales. So there are over 550 municipalities in New Jersey and each one has a tax sale once a year. So on any given day, there could be a few tax sales all the same time on the same day.
Joanne Musa (19:20):
So I hired five other people and taught them how to find out about the tax sales, how to do the due diligence, how to bid at the tax sale. And I even helped the person I was working for develop a software program to manage the liens. And so after doing that, I realized there were people all over the country and even all over the world that wanted to learn how to do this. And so that’s when I, I started my website around 2005. I started teaching around 2004, but I started my website in 2005.
So I hired five other people and taught them how to find out about the tax sales, how to do the due diligence, how to bid at the tax sale. And I even helped the person I was working for develop a software program to manage the liens. And so after doing that, I realized there were people all over the country and even all over the world that wanted to learn how to do this. And so that’s when I, I started my website around 2005. I started teaching around 2004, but I started my website in 2005.
Jay Conner (19:58):
Okay. Wow! Well so you’re like me, I do the business. I coach. I teach, and I teach the business. And I’ve read. And I don’t know if we have time for you to go through it here on the show, but I’ll ask you about how much time it takes you, but I’ve read where you actually have five steps to, for people to take, to buying a profitable tax lien. Can you give us the 30,000 foot view of each of those five steps?
Okay. Wow! Well so you’re like me, I do the business. I coach. I teach, and I teach the business. And I’ve read. And I don’t know if we have time for you to go through it here on the show, but I’ll ask you about how much time it takes you, but I’ve read where you actually have five steps to, for people to take, to buying a profitable tax lien. Can you give us the 30,000 foot view of each of those five steps?
Joanne Musa (20:30):
Sure. You could use the acronym steps. S T E P S. Let me see if I can remember them first though. Since I did this. But they’re, they’re also all in my book. I actually have seven steps for the complete process because after you buy the liens, there are other things that you have to do to make sure that you’re profitable. Okay. Once you buy liens.
Sure. You could use the acronym steps. S T E P S. Let me see if I can remember them first though. Since I did this. But they’re, they’re also all in my book. I actually have seven steps for the complete process because after you buy the liens, there are other things that you have to do to make sure that you’re profitable. Okay. Once you buy liens.
Jay Conner (20:56):
You said thos steps are in your book, is that in the book that you’re going to give away here at the end of the show?
You said thos steps are in your book, is that in the book that you’re going to give away here at the end of the show?
Joanne Musa (21:01):
Actually, you know what I’m going to give away. I’m not going to give away the book that’s on Amazon because I don’t have enough of those to give to everybody. But I have a, I have a special report called the seven steps to building your profitable tax lien portfolio. And those seven steps are all outlined in there.
Actually, you know what I’m going to give away. I’m not going to give away the book that’s on Amazon because I don’t have enough of those to give to everybody. But I have a, I have a special report called the seven steps to building your profitable tax lien portfolio. And those seven steps are all outlined in there.
Jay Conner (21:23):
Okay! Great!
Okay! Great!
Joanne Musa (21:23):
And the first one is, I could give you the first one and that is, Select The Right Place To Invest. That is, that is the first S in the steps, five steps process.
And the first one is, I could give you the first one and that is, Select The Right Place To Invest. That is, that is the first S in the steps, five steps process.
Jay Conner (21:35):
That’s awesome! That’s awesome! So, I know it’s all over the board, but you know, you got it. You got started in this strategy because you know, it’s a low entry, doesn’t take much money. So what’s the definition of not much money? I mean, I know that depends, but like, what are some examples of like real amounts of money people need? You know, what’s an example of being able to get started, you know, doing this?
That’s awesome! That’s awesome! So, I know it’s all over the board, but you know, you got it. You got started in this strategy because you know, it’s a low entry, doesn’t take much money. So what’s the definition of not much money? I mean, I know that depends, but like, what are some examples of like real amounts of money people need? You know, what’s an example of being able to get started, you know, doing this?
Joanne Musa (22:05):
Okay. I’ll give you an example. One of the real profitable liens, I did back in 2002. My original lien was for less than $500.
Okay. I’ll give you an example. One of the real profitable liens, I did back in 2002. My original lien was for less than $500.
Jay Conner (22:19):
Okay.
Okay.
Joanne Musa (22:19):
And it was in New Jersey where I invest, they don’t just sell taxes in these sales. They will also sell utilities. Anything that you owe to the municipality and don’t pay can go into this tax sale. You get a tax lien certificate, and it’s just as good as, you know, a regular tax as the taxes. So this was for the water and soar amount, I believe for this property. And it was for 400 and change was the first amount that I paid. And then every, the next year I got to pay the subsequent taxes. And I paid them for the next few years. And then when this thing finally redeemed, and then I stopped paying, I think after seven years. Now, you can’t let all your liens go that long, but in New Jersey you can.
And it was in New Jersey where I invest, they don’t just sell taxes in these sales. They will also sell utilities. Anything that you owe to the municipality and don’t pay can go into this tax sale. You get a tax lien certificate, and it’s just as good as, you know, a regular tax as the taxes. So this was for the water and soar amount, I believe for this property. And it was for 400 and change was the first amount that I paid. And then every, the next year I got to pay the subsequent taxes. And I paid them for the next few years. And then when this thing finally redeemed, and then I stopped paying, I think after seven years. Now, you can’t let all your liens go that long, but in New Jersey you can.
Joanne Musa (23:08):
And so that’s like being able to put money away at anywhere from 8% to 18%. And without having to go to a sale and bid, once you have that lien, you could just keep paying those subsequent taxes. And then years later, I made over 40% on my money. I think in seven years that it finally redeemed and I made you know, almost doubled my money and that, it’s not the only incidence where I did that. As a of fact, I have another secondary lien that I bought where I put up a little bit more money and made about 30% on my money in 18 months. So it, and that, that lien was you know, was a couple thousand dollars.
And so that’s like being able to put money away at anywhere from 8% to 18%. And without having to go to a sale and bid, once you have that lien, you could just keep paying those subsequent taxes. And then years later, I made over 40% on my money. I think in seven years that it finally redeemed and I made you know, almost doubled my money and that, it’s not the only incidence where I did that. As a of fact, I have another secondary lien that I bought where I put up a little bit more money and made about 30% on my money in 18 months. So it, and that, that lien was you know, was a couple thousand dollars.
Jay Conner (24:06):
Okay. So yeah. We’re not talking anything about huge amounts of money.
Okay. So yeah. We’re not talking anything about huge amounts of money.
Joanne Musa (24:10):
No, yeah. That’s the, see, small investors can do this when you’re doing it on your own. When you, when you have somebody else do it for you, you have to come up with a lot more money, but when you’re doing it on your own, you could start with smaller amounts.
No, yeah. That’s the, see, small investors can do this when you’re doing it on your own. When you, when you have somebody else do it for you, you have to come up with a lot more money, but when you’re doing it on your own, you could start with smaller amounts.
Jay Conner (24:26):
Excellent! And the free report that you’re going to give away, and we’ll give out the website here in just a second, but does it like tell, does it tell people how to get started and like where to go? I mean, you know, where do you go in your local area to find out where the sales are? And when the sales are?
Excellent! And the free report that you’re going to give away, and we’ll give out the website here in just a second, but does it like tell, does it tell people how to get started and like where to go? I mean, you know, where do you go in your local area to find out where the sales are? And when the sales are?
Joanne Musa (24:44):
Well, here’s the problem with that. It’s different for every state. I do have, I’ll tell you what, I do have another program that I could give to your listeners. And it’s called the Sweet 16 Tax Sale website, swipe file. And that’ll give them 16 places they could go to find out about tax sales. 16 different tax sale websites, because that changes. Now I have a special tool that I use to find out what tax sales are coming up around the country that, that I give to my members. But they can not, they can find out about that after they get the basics, you know, and I doubt if it’s the right thing for them or not.
Well, here’s the problem with that. It’s different for every state. I do have, I’ll tell you what, I do have another program that I could give to your listeners. And it’s called the Sweet 16 Tax Sale website, swipe file. And that’ll give them 16 places they could go to find out about tax sales. 16 different tax sale websites, because that changes. Now I have a special tool that I use to find out what tax sales are coming up around the country that, that I give to my members. But they can not, they can find out about that after they get the basics, you know, and I doubt if it’s the right thing for them or not.
Jay Conner (25:36):
Well, I’ll tell you what, Joanne, let’s not hold it back anymore. Let’s go here and put up on the screen and those that are listening, write it down. Here’s the website where you can go to get Joanne’s free gifts that she just mentioned. To get you started to learning about tax liens. You go to www.JayConner.com/TaxLien And just to make sure you got that straight tax lien is T A X L I E N. That URL one more time. It’s www.JayConnner.com/TaxLien Joanne, final words of advice here on this show for our listeners and followers who want to learn about getting higher returns on their money without the risk of the stock market. Final words and thoughts.
Well, I’ll tell you what, Joanne, let’s not hold it back anymore. Let’s go here and put up on the screen and those that are listening, write it down. Here’s the website where you can go to get Joanne’s free gifts that she just mentioned. To get you started to learning about tax liens. You go to www.JayConner.com/TaxLien And just to make sure you got that straight tax lien is T A X L I E N. That URL one more time. It’s www.JayConnner.com/TaxLien Joanne, final words of advice here on this show for our listeners and followers who want to learn about getting higher returns on their money without the risk of the stock market. Final words and thoughts.
Joanne Musa (26:35):
Well, I believe the best place to invest is in your own backyard where you know, what the property values are. And you just need to check out what happens in your state, in your County or in your town, depending on what state you’re in, because it is different in every area of the country. So you want to find out what happens in your particular area of the country.
Well, I believe the best place to invest is in your own backyard where you know, what the property values are. And you just need to check out what happens in your state, in your County or in your town, depending on what state you’re in, because it is different in every area of the country. So you want to find out what happens in your particular area of the country.
Jay Conner (27:03):
Wonderful! Joanne, thank you so much for taking the time to come on the show and for offering your wonderful, valuable, free gifts to my folks. Thank you!
Wonderful! Joanne, thank you so much for taking the time to come on the show and for offering your wonderful, valuable, free gifts to my folks. Thank you!
Joanne Musa (27:14):
You’re welcome. Thank you for having me on your show!
You’re welcome. Thank you for having me on your show!
Jay Conner (27:17):
You bet it Joanne! Well, there you have it folks! Another episode of real estate investing with Jay Conner, I’m Jay Conner, The Private Money Authority. Wishing you all the best. And here’s to taking your real estate investing business to the next level. We’ll see you on the next show!
You bet it Joanne! Well, there you have it folks! Another episode of real estate investing with Jay Conner, I’m Jay Conner, The Private Money Authority. Wishing you all the best. And here’s to taking your real estate investing business to the next level. We’ll see you on the next show!
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