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Answers - Investing In Tax Liens
Tax liens can be a relatively safe investment. A good return on your money is also possible. The catch? Everyone knows about this now, and the bids are pushing down rates of returns.
When we went to the local tax lien sale here in Fremont County Colorado, we were amazed that a little community
When we went to the local tax lien sale here in Fremont County Colorado, we were amazed that a little community
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
like this could have so many investors wanting to buy tax liens. This is good for the county, but not for an investor.
Tax liens are handled a little differently in each state, but they are essentially the debt that a property owner owes for late taxes. Investors buy these, and to pay them off
Tax liens are handled a little differently in each state, but they are essentially the debt that a property owner owes for late taxes. Investors buy these, and to pay them off
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
nd so not lose their property, an owner must pay whatever fees and interest rate the law specifies. Here in Colorado, that is 15%. We liked the idea of a 15% return on our money.
Unfortunately, it wasn't as simple as that. While it is true that the property owner will pay 15% interest and the c
Unfortunately, it wasn't as simple as that. While it is true that the property owner will pay 15% interest and the c
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
unty will forward that money to you as the lien holder, you don't necessarily get to buy the lien at face value. It used to be that a few investors in any given county would more or less divvy up all these great little investments among themselves and that was that. However, now there are hundre
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
ds of people bidding on them, even in little county like this.
If, for example, the taxes due on a property are $1,000, the bidding starts there. But as we watched, most of these liens were bid up to about 10% over face value. The "premium" goes straight to the county, which is why they employ
If, for example, the taxes due on a property are $1,000, the bidding starts there. But as we watched, most of these liens were bid up to about 10% over face value. The "premium" goes straight to the county, which is why they employ
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
professional auctioneer to get those bids up there. This means that if the owner pays his taxes in a year, the lien holder will get just $1,000 plus 15% or another $150: $1150 total. If he paid $1100, that extra $50 is an annual return of just 4.5%.
Wait, there is worse news! If the property o
Wait, there is worse news! If the property o
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
ner pays his late taxes a month after the tax sale, the investor would get just $12.50 in interest. In other words, he would lose $87.50 because he paid a $100 premium, which the property owner doesn't have to repay. It seems that most of the investors thought the late payers wouldn't pay for a
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
couple years (after three they lose the property), since a 10% premium was average.
Did we see any go for face value? Out of hundreds of liens auctioned, three or four went at face value. They were $30 or $40 tax liens on small properties.
I hear that there are "leftovers" in many counties. Th
Did we see any go for face value? Out of hundreds of liens auctioned, three or four went at face value. They were $30 or $40 tax liens on small properties.
I hear that there are "leftovers" in many counties. Th
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
se are liens that didn't sell at the auction, and can be purchased at face value over the counter (if you can find the right person). Maybe this was more common before there were crews of marketers roaming the country selling "get rich with tax liens" seminars and course. I have only checked in
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
he several states I have lived in recently, but we have found no leftovers.
What if you do find a place where you can buy tax liens at face value, and they pay a decent rate of interest in that state. What kind of risks do you take? Not much.
Think of it this way: Unless the tax assessor is in
What if you do find a place where you can buy tax liens at face value, and they pay a decent rate of interest in that state. What kind of risks do you take? Not much.
Think of it this way: Unless the tax assessor is in
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
ane, the property can't be worth much less than half of what he says. Since taxes even in the worst areas are not likely to be more than 5% of this value each year, and owners lose their properties (perhaps to you) after two or three years depending on the state, you should never have to invest
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
more than 15% of the value of the property, or 30% if the assessor is half insane in his assessments.
In other words, unless the owner never pays, and after you take the deed to the property, you find out it is filled with toxic waste, you are fine. To avoid this potentially bad scenario, simpl
In other words, unless the owner never pays, and after you take the deed to the property, you find out it is filled with toxic waste, you are fine. To avoid this potentially bad scenario, simpl
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
buy only liens on residential property, and spread your money among numerous liens. If you make 15% interest on ten liens for two years, and you have to throw one away, you still have a better over-all return than in the bank.
In fact this strategy of simply spreading the risk is one that has
In fact this strategy of simply spreading the risk is one that has
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
een used for years by big insurance companies. Some of them buy up these liens by the thousands, and they don't waste their time doing the research that the seminar presenters recommend (maybe they just want to scare you into buying the materials that will teach you how to do this "research"?).
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
If ten out of each a thousand turned out to be never-to-be-paid liens on toxic waste dumps, it would reduce their return by just 1%, and you don't have to take title to the property.
There are some other things to watch for, however. Here in Colorado, for example, if the property owner doesn't
There are some other things to watch for, however. Here in Colorado, for example, if the property owner doesn't
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
ay the lien by the deadline, you have to publish a notice three times before getting title to the property. If it is a small lien you could spend all the interest you gained posting ads in the classified section of the local newspaper, just to have the property owner pay up (he doesn't have to r
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
imburse you for the ads). For this reason and others, I would only invest in liens of $400 or more.
In some states, rather than bid a "premium" buyers bid down the interest rate. The rate mandated by law may be 16%, for example, but the bidder who will take the lowest rate gets to buy the lien.
In some states, rather than bid a "premium" buyers bid down the interest rate. The rate mandated by law may be 16%, for example, but the bidder who will take the lowest rate gets to buy the lien.
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
I presume that the county keeps the additional interest.
Bottom line? Investing in tax liens can be profitable in most states, if you can buy the liens at face value, and if you understand how it is done. It is done in many different ways. Find the county employee that know how the whole proce
Bottom line? Investing in tax liens can be profitable in most states, if you can buy the liens at face value, and if you understand how it is done. It is done in many different ways. Find the county employee that know how the whole proce
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
s works, and have it explained to you. In my experience, they often don't want to explain it to you, but your taxes pay them, so bug them until they do.
What about actually getting property this way? Far less than 1% of liens auctioned off are left unpaid until the deadline passes. You can do r
What about actually getting property this way? Far less than 1% of liens auctioned off are left unpaid until the deadline passes. You can do r
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
search to find the property owners least likely to pay their liens, but who wouldn't sell their property before losing it over a few thousand in back taxes? Yes, occasionally someone gets an $80,000 house for $2,000 in back taxes by buying a tax lien, but don't count on it as a part of your plan
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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