Land Profit Generator Tips: Potential Pitfalls of IRS Liens on Property
Posted by admin | Posted in Land Profit Generator | Posted on 30-10-2009
Tags: Jack Bosch, Land Profit Formula, Land Profit Generator, Real Estate Investing
0
Potential Pitfalls of IRS Liens
As stated in the new Land Profit Generator by Jack Bosch, IRS liens are incurred when a property owner does not pay their federal income taxes. Although they are rare, it is important to be knowledgeable about IRS liens because they do not go away. They are attached, like glue, to the property of the delinquent tax payer. The lien follows the property whether you are aware of its existence or not. That is why it is critically important to do a thorough title search on any property you are considering. Never purchase a property without completing this step.
Consider the following scenario: when you buy a $10,000 property that has a $50,000 IRS lien, proceeds from the sale will go to satisfy the debt to the IRS. You will end up with nothing which is obviously a situation you want to avoid.
Keep in mind that title searches are essential, but title insurance is not. Title companies charge a fee for issuing title insurance after completing their title search. In the event an issue surfaces down the road, the title company is responsible for any expenses associated with resolving the issue. But if you do a thorough job yourself, you may not need title insurance.
The Land Profit Generator by Jack Bosch will teach you everything you need to know to do your own title searches. It is pretty easy once you know what to look for. Given that most counties now maintain online property records, you can even do this from home. If online access is not available, you will have to visit the county courthouse or clerk’s office in order to do your research.
One final note: In some cases, it still makes sense to purchase a property with an IRS lien. For example, if you locate a property that is worth $50,000 with a $5,000 IRS lien, and you obtain the property for $10,000, you will still make money. You can pay $15,000 to purchase the property and clear the lien, or negotiate the selling price down to $5,000 to compensate for the lien. Either way, you are still only paying a fraction of what the land is actually worth. IRS liens are uncommon, but they can be devastating when you don’t find out until after purchasing the property.
Learn everything you need to know about Land Profit Generator at http://www.landprofitsreview.com . Look for information on my course, the Land Profit Generator. Also, you will have the opportunity to sign up for our free list that brings real estate investing tips and discounts right to your inbox. No spam, just content!

