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Official Tax Lien Investing Expert - Joanne Musa
Joanne Musa works with investors who want to reap the rewards of investing in profitable tax lien certificates and tax deeds. Her tax lien investing articles appear all over the Internet. Her no-nonsence, straightforward approach to tax lien investing has earned her the title of the "Tax Lien Lady." As the owner of Tax Lien Consulting LLC, she has developed a full line of educational courses for investing in tax lien certificates and tax deeds. You can get her free special report, 7 Steps to Building Your Profitable Tax Lien Portfolio at Tax Lien Investing Basics.

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Investing in tax lien certificates How Profitable is Your Tax Lien Investing?
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Investing in tax lien certificates

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Books by this Author

7 Steps to Building Your Profitable Tax Lien Portfolio
7 Steps to Building Your Profitable Tax Lien Portfolio
FREE special Report ''7 Steps to Building Your Profitable Tax Lien Portfolio'' by the Tax Lien Lady.

 

Buying Tax Liens Online
Buying Tax Liens Online
webinar recording, manual, plus bonus consult and videos on how to buy tax liens online. Includes guide to all the counties that have online tax sales.

 

Tax Foreclosure Fortunes
Tax Foreclosure Fortunes
Learn how to make money on overbids from tax foreclosed homes. This course includes a teleseminar/interview, manual, support documents and bonus e-book.

 

Tax Lien Investing Basics
Tax Lien Investing Basics
Learn the basics of investing safe, high yeilding, real estate secured tax lien certificates and tax deeds with this audio course. Online course includes 2 audio lessons with manuals on the basics of tax lien and tax deed investing and how to find the tax sale information. The course also includes 2 bonus e-books and 2 more bonus audios. All for only $97!

 

Tax Lien Investing Secrets Digital Course
Tax Lien Investing Secrets Digital Course
4 lesson audio course on how to buy profitable tax liens and deeds.

 

Tax Lien Lady’s Jet Start Program
Tax Lien Lady’s Jet Start Program
Learn how you can grow your wealth safely by investing in tax lien certificates and tax deeds. This program consists of 2 e-books and a 30 minute consultation with Joanne Musa, the Tax Lien Lady.

 

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Do you know how profitable your tax lien investing is? In this article you’ll learn how to track your tax lien portfolio so that you know just how profitable you are at any time. Begin by entering all of your tax liens into a spreadsheet or software program. The best way to index them is by county/municipality, and tax ID (in New Jersey this would be block and lot). You’ll need a column or field for the certificate amount and a column or field to input the interest rate that you are getting on the certificate amount. You’ll also need to input any premium that was paid. You’ll need to have a formula to calculate the penalty amount and a formula to calculate the interest due. These formulas must also take into account how many days have lapsed since you purchased the tax lien certificate. You’ll also need to be able to track any subsequent taxes and the interest paid on them. And you will need a way to keep track of all of your expenses, both the expenses that are reimbursed upon redemption of the tax lien certificate and those that are not.

To calculate how profitable you are, take all the interest and penalties that are due both on the certificate amount and on any subsequent taxes paid. Add to this your original investment (the certificate amount) plus any subsequent taxes paid plus any expenses that are reimbursed upon redemption of the tax lien certificate. This is the total amount that you would be paid if your tax lien certificate redeemed. Subtract your total investment from this number. Your total investment is what you paid for your tax lien certificate plus any subsequent taxes that you paid plus any reimbursable expenses and non-reimbursable expenses related to your lien. This is your profit. Once you have your profit you can calculate the yield, or percent yield for each of your tax lien certificates. To do this, divide the profit by your total investment. If you want to convert this to an annual yield, you need to know how many days the lien was held for. Multiply the yield by 365 (the number of days in a year) and divide by the number of days that you held the certificate.

For instance if your profit was $360 on a tax lien that you held for 90 days and your total investment was $3600, your yield would be 10% and your annualized yield would be .10* 365 / 90 = .4055 or 40.5 %. You’ll need to do this for each tax lien in your portfolio. Then if you want to, you can get an average yield or annual yield for your entire portfolio.

Since every state is different the calculations for penalties and interest will differ for each state and you will need a different spreadsheet or software for each state that you invest in. If you invest in the state of New Jersey there is software available that has all of this built in. It’s called Tax Lien Manager, and it does much more that calculate the profitability of your tax lien portfolio. Tax Lien Manager will also calculate how much premium you can pay for tax liens and still be profitable and with Tax Lien Manager you can import detailed tax sale lists from LienSource. Tax Lien Manager also provides you with all contact data for New Jersey (tax collectors and county clerks) and pre-printed forms and letters to use in your tax lien investing.

Joanne Musa works with investors who want to reap the rewards of investing in profitable tax lien certificates and tax deeds. Her tax lien investing articles appear all over the Internet. Tax Lien Lady’s Member’s Area is designed to help you navigate though the steps to building a profitable portfolio of tax liens or tax deeds. With 3 full courses, dozens of videos, and monthly webinar training, you’ll quickly move forward on your journey to tax lien investing success! Join us at www.TaxLienLady.com/Membership.htm

Contact the Author
Joanne Musa
Tax Lien and Tax Deed Investing
joannemusa@taxlienlady.com
More Details about Investing in tax lien certificates here.

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