RETIREMENT MILLIONAIRE RESEARCH REPORT

The Secret 24% CD

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The Secret 24% CD

Dr. David Eifrig Jr., MD, MBA

Almost every courthouse in the U.S. employs a little old lady to stand guard over the real-estate property records the way a junkyard dog guards the auto yard. Buried in their file cabinets in rooms with names like County Tax Collectors Office, Office of Finance, or Treasurer Tax Collectors Office are lists of properties held by owners who havent paid their property taxes. For investors patient enough to do some homework, finding those lists could lead to doubledigit returns on your money in some cases within months. And since most short-term CDs and money-market accounts arent paying more than 1% to 2% interest, these investments Ill describe in this report offer a great opportunity to increase the income in your portfolio. The investment has nothing to do with stocks, bonds, or any other risky investment. Its not an actual CD either. (So the FDIC does not guarantee it.) But because the investments are backed by real estate, they can be in some cases even safer than a bank account. Quite simply, this investment what we call a Tax CD is created and administered by state and local governments all across the country. Essentially, its a way for your local government to raise money. Like all great opportunities, it will take some work. (But dont worry, youll have time to do the research because, in many states, you can only take advantage of it once or twice a year.) Im talking about buying tax liens on your county courthouse steps. And right now, its one of the best alternatives to leaving money lying around earning next to nothing.

An Investment That Wins 95% of the Time

The basic idea of tax lien certificates is simple... Every year, the local municipalities require property owners to pay taxes on their real estate the taxes cover sewer, trash, and police. But every year for many reasons, people dont pay those taxes. Its up to the county to chase down those delinquent payers. But since the city needs that money, it allows other individuals (us the investors) to pay the back taxes in exchange for a lien on the property. The government regularly auctions these tax liens on the courthouse steps (at least once a year and as often as monthly).

Once the person pays the taxes, the lienholder get his money plus interest. The investment is incredibly secure because it is collateralized by the value of the real estate. If the property owner never pays the taxes, the government will eventually seize the land and force the sale. In most cases, people want the tax collector off their backs as soon as possible and pay what they owe this means a quick return on your money. Even in the worst case when the government forces a sale the holder of the tax lien is first in line to get paid in foreclosure. There are more details to consider, of course. Every state is different, with different interest rates, penalties, fees and time periods to pay back taxes. So you do have to roll up your sleeves here and do a good deal of homework. But thats also part of the beauty of it... You have literally thousands of these tax lien certificates available, and not many people willing to figure them out. Its a perfect way for a Retirement Millionaire reader to make safe income and even capital gains.

Heres just a small sampling of the interest rates per state: Alabama 12% Arizona 16% Connecticut 18% Colorado 15% District of Columbia 18% Florida 5%-18% Hawaii 12% Iowa 24% Kentucky 12% Louisiana 12% Maryland 6%-24% Massachusetts 16% Mississippi 18% Missouri 10% Montana 10% Nebraska 14% New Jersey 18% North Dakota 12% Ohio 18% Oklahoma 8% Pennsylvania 10% South Carolina 8%-12% South Dakota 12% Tennessee 10% Vermont 12% West Virginia 12% Wyoming 15%

Risks of Investing in Tax Liens

The beauty of this opportunity is the tax collector charges steep penalties and fees for late payments. For example, Texas sticks it to delinquent property owners for 25% Georgia 20% Illinois 18% and Florida 18%. Those percentages represent your gains. When the property owner pays his taxes and fees, you get your original money back, plus the fees.

The best part is, property owners pay off 95% of these liens within a couple of years (sometimes within months). Thus, you can easily and safely earn 16%24% a year on your money by investing in these liens. Worst case is the taxes and penalties arent paid, and the property has to go to auction. Once its sold, you get your money back. Because taxes are usually only 1%-2% of the value of the property, its almost impossible to get back less than your initial investment from the proceeds of a foreclosure sale. In some states, you can actually get the property for just the cost of the taxes and penalties youve already paid (but this is rare). The bankruptcy can represent a big question mark and risk. Before you bid for a tax lien, you have to make sure the lot exists, is accessible, and is worth significantly more than the back taxes to ensure youll get your money back with full interest.
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As long as youre certain of these things then bankruptcy mostly represents a delay in when you receive your payback. The laws surrounding foreclosure vary among states and can at times be Byzantine. For example, in Florida, the foreclosure process can start only after two years of delinquent property taxes. Even then, it takes time and you cant be sure when youll get paid. Still, the rewards here usually outweigh your risks. This is a lot more secure and a lot less risky than the stock market... Again, 95% percent are paid with a couple years (usually sooner). That kind of certainty is hard to beat, especially when it comes with a built-in 16%-24% gain.

Six Steps to Collecting Amazing Income Checks

The clerk of court in your county sells tax liens at auctions. Often, the court advertises the auction in the local newspaper. Theyre hidden away in the legal-notices section of the classified ads. The notices dont give the property address. They just give the legal description of the property, which sounds like a bunch of mumbo jumbo. Heres a sample... ...said certificate embraces the following described property in the County of St. Johns, State of Florida, to-wit: PARCEL NUMBER 050602-1030 SEC 09 TWP 10 RGE 28 PART OF SE 1/4 & PART SEC 16 330 X 404.8 FT (EX S 70 & E 30 FT) OR TRACTS 1030 & 1031 UNIT 2 FLAGLER ESTATES UNRECORDED PLAT OR696/1613 & 2729/1739(D/C) The assessment of the said property under the said certificate issued was in the name of [name withheld]. Unless said certificate shall be redeemed according to law, the property described therein will be sold to the highest bidder at the front door of the RICHARD O. WATSON Judicial Center, 4010 Lewis Speedway, St. Augustine, Florida, 32084, on SEPTEMBER 30, 2009 at 12:00 oclock noon. Its almost impenetrable. But you can take the parcel number and enter it into the local property appraisers website. That should identify the property and all the info, aerial views, and so on. (If you care to, you can also get this info by braving the elderly ladies guarding the property-records office.) Taking the time to do a little homework could be worth as much as 24% in annual income checks. Id be willing to bet that you can get great buys just about anywhere... Local governments dont care what the properties sell for or how many people show up to the auction. They just want their taxes. So they do a terrible job of promoting them, and usually there are just a few bidders. How can you earn 16%-24%? First, find out if your state is a tax-lien state or a tax-deed state. (Dont worry about the distinctions. Were only interested in tax-lien states.) Not every state handles back taxes through lien auctions. Heres a list of tax-lien states: AL, AZ, CO, FL, IL, IN, IA, KY, MD, MI, MO, MT, NE, NJ, ND, SC, SD, VT, WV, and WY. State law determines the interest, penalties, and fees the owner has to pay to redeem the lien from you the investor. In some states the owner pays a minimum penalty (5% in Florida) no matter when the lien is redeemed even if its two days later.

If you live in or want to invest in one of the taxlien states, call the courthouse and find out what time of year and what type of auction it holds. In some states, the auction bidding is for interest rates the investor will receive. For example, in Florida bidding starts at 18% and goes down to 0.25%. In other states, potential buyers bid on the nominal amount of taxes owed and go up, but with an interest rate attached to the final balance. In some states its a mix of the two. These are local details the court employees can explain. Thats why I love to visit the courthouse and talk with the people in the property departments. They have books and records easily available, although not always understandable. And by hanging out in person in the offices, your questions are quickly answered. A few counties now have online records you can peruse from home.

In addition to following the six steps I outline at the end of this report, I encourage you to buy a few books on tax liens a couple months before the auction so you know exactly what to expect. Here are several books I recommend (Theyre easy to find on Amazon.) The Complete Guide to Investing in Real Estate Tax Liens & Deeds: How to Earn High Rates of Return Safely by Jamaine Burrell Profit by Investing in Real Estate Tax Liens: Earn Safe, Secured, and Fixed Returns Every Time by Larry Loftis Real Estate Tax Deed Investing: How We Made Over One Million Dollars in Two Years by Matt Merdian and Laurence Samuels

Once youve picked out the properties, at least a Complete Guide to Real Estate Tax Liens week or two before the auction, visit all the properand Foreclosure Deeds: Learn in 7 Days by ties youre interested in bidding on. Be sure and set Don Sausa the limit youre willing to accept. Once the auction happens youll easily lock up returns of 12% on your money and in amounts as little as $500-$1,000 amounts that anyone can invest. So heres what you need to do: 1) Go to your local county clerk of court website and search for tax lien sales, tax deed auctions, or something along those lines. You can also call the clerk of courts office and ask where the information is published and when the next auctions are. 2) Check out the properties up for auction. First, look them up on Google Earth (or Google Maps) to find out exactly where they are. Then, drive by them and make sure they have rights-ofway and such. 3) Figure out what youd be willing to pay for them. A starting figure for this trick is to take the property appraisers number and cut it in half. Thats for a great property. If its something thats not particularly impressive, try to buy it for 25 cents on the dollar. (Yes, Im serious.) 4) Before you show up at the auction, pick up a couple of five-star-rated books on tax lien investing from Amazon and know them backward and forward... particularly the rules of your state. 5) Visit the courthouse and thumb through the big file for the property. Ask questions about the property... youd be surprised at what you can learn. 6) When you go to the auction, stick to your prices. Dont get caught up in the bidding.
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Researching and buying tax lien certificates takes a little bit of time and dedication. But this is the safest high-income opportunity I know of right now... make sure you take advantage of it. Its rare to find an investment that 95% successful and offers built-in returns of 16%-25%. Income investors will have a hard time finding a better, safer alternative in the market today.

Retirement Millionaire 1217 St. Paul Street Baltimore, MD 21202 1-888-261-2693