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December 2, 2002levitra price
levitra price
Whether you
are exploring tax liens as a potential new investment, you have been buying for years, or you are a portfolio manager for an
institutional investor, you probably focus most of your tax lien buying efforts on the annual auctions in February. The
standard drill is to obtain the list of delinquent parcels that is published in January, and start researching the properties
to decide what to bid on when the auction comes. Buying Aover the counter@ after auction is the
other alternative, but the selection is usually limited, and not as attractive. In this article, I describe pros and cons of
different buying approaches, including suggestions for buyers and sellers in a secondary market for tax liens.
The primary ways to buy tax liens are at auction, or later, over the counter at the treasurer=s
office. In both cases one is buying the lien from the state of Arizona. ASecondary market@ simply
means buying tax liens from other investors B liens already purchased from the primary market.
The
levitra price is that this is where liens on the best properties (the best security for
the liens) is available. The downsides of participating in the auction are that interest rates are likely to be bid down on
the desirable properties, there is no guaranty of having the winning bid, and research efforts in advance of the auction are
likely to be wasted because the prepared bidders are likely to be chasing the same investments.
levitra price, albeit from a smaller universe of opportunity, allows purchases at the highest interest rate, and
perhaps a better ratio of research effort to actual purchases made. But what do you do if you are not satisfied with liens
available over the counter? Just wait until the next auction? Not necessarily.
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Thinking in secondary market terms, the buyer can approach the greater universe of already-sold tax
certificates with specific investment objectives in mind. If the desire is to buy an interest-bearing vehicle, one can
research at the treasurer=s office those liens originally sold within the last 12 months. After inquiring
through the treasurer=s office, the lien holder can be contacted with an offer to purchase.
Such a
deal can benefit both parties. The buyer can take its time researching the liens before even making an offer, making sure
that it will obtain a certificate bearing an attractive interest rate. Once the buyer pays subsequent delinquent taxes, these
amounts all earn interest at the attractive bid rate. The seller gets cashed out and earns the certificate rate or better (if
a purchase premium is offered), which allows the seller potential compounding on the investment if the proceeds can be
reinvested at the next auction.
The downside to buying liens this way, especially if a premium is paid, is that the
lien could be redeemed shortly after the purchase, and insufficient new interest would have been earned to cover the buyer's
premium expense. Also, the interest paid to the seller of the certificate, while part of the buyer=s investment,
will not earn interest for the buyer. And from the seller=s point of view, one year (or less) in interest on the
certificate investment may be insufficient for the seller to recoup its due diligence expenses incurred before buying the
certificate.
If your goal is to buy foreclosable liens, and don=t care so much about the interest
return on the certificates, your research in the treasurer=s records can focus instead on those certificates
that are close to three years old, or older. After evaluating the properties securing these liens, you can contact the
lienholder with an offer to purchase.
Do not assume that just because another lien holder has not acted to
foreclose that there is necessarily something amiss with the property. Often institutional lien buyers prefer the redemption
outcome, and to move forward with lien foreclosure requires a multi-person decision-making process, which has a lower
priority than making new purchases.
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Buying a lien this way and starting foreclosure right away means you will not receive any substantial return if the lien
is redeemed, unless you were able to negotiate a discount with the lien seller. By cashing out, the lien seller locks in its
return on investment, which might be less than it could have obtained through successful foreclosure and sale of the
property.
The rules of the levitra price discussed in
Chapter 8 of levitra price (available at ) may mandate the same result as this latter approach when subsequent
delinquent taxes on a parcel have not been paid and endorsed on a certificate.
To levitra price discussed in this article, the record of tax lien sales in the appropriate treasurer=s office
should be consulted. Many counties code the lien buyers instead of showing their names and addresses in the record of sales.
It will thus be necessary to inquire with the treasurer's office about the identity of the lien holders you wish to contact.
If they resist providing the information, it may be necessary to resort to Arizona=s public records request
statutes, and following. |
