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Slide 2 D Sponsored by IRA CLUB & Dennis Blitz THE PERFECT UNION OF SELF-DIRECTED IRAs & TAX LIENS Slide 3 MEET YOUR TRAINER Has been investing for over 30 years B.S. degree from Western Illinois Univ. M.S. degree from Kansas State Univ. Post-doctoral Research at Univ. of Idaho Certification to Teach Faculty at University of Kentucky Has owned 3 Franchises Ph.D. degree from Kansas State Univ. Is an International Mentor / Trainer DR. MARIJO WILSON Slide 4 The Rule of 72 The Magic of Compound Interest Take the Rate of Return on your money and divide it into the number 72 and it will give you the number of years it takes your money to double in Value. Example: Your money is making 3% ROI. Divide 3 into 72 and your money will double every 24 years. Your money is making 24% ROI. Divide 24 into 72 and your money will double in 3 years. Slide 5 Example Lets take a 20 year old that decides to invest $2000 (one time only) in an investment at various rates of return and see how that money grows ! We will assume for this example that the money will grow tax free. We can do this in retirement plans in the U.S. (Traditional & Roth IRA, 401K) Slide 6 Slide 7 Slide 8 Slide 9 WOW! Slide 10 2 Types of IRAs Traditional IRA Allows retirement contributions to grow tax-deferred until withdrawn, potentially speeding growth. Eligible investors also can take an income tax deduction on their IRA contributions Roth IRA Offers tax-free growth because contributions are made with already taxed income. Theres no income tax deduction, but contributions (minus earnings) can be withdrawn without tax or penalty. Slide 11 Contribution Limits Can contribute $5,500 ($6,500 for anyone 50 and older). Contribution limit to a tax-deferred retirement plan: $17,500 a year. Slide 12 Would you rather pay taxes on $2,000 (the seed) or $131,072,000 (the crop) ? Slide 13 Yes, but Where can we get this rate of return? Slide 14 A TAX LIEN is basically a loan that can be turned into a deed if not repaid after a certain period of time. A TAX DEED is the deed to the property, which means ownership. (May or may not have a redemption period) TERMINOLOGY Slide 15 WHY ARE THEY SOLD? The taxing jurisdiction depends on the income from property taxes to pay for essential services. When taxes remain unpaid, either tax lien certificates are sold or the taxing jurisdiction holds the lien and eventually forecloses on the lien and sells the tax deed. Slide 16 TENNESSEE Redeemable Deeds 12% TENNESSEE Redeemable Deeds 12% Slide 17 TENNESSEE Redeemable Deeds 12% TENNESSEE Redeemable Deeds 12% ARIZONA LIENS 16% Slide 18 TENNESSEE Redeemable Deeds 12% TENNESSEE Redeemable Deeds 12% ARIZONA LIENS 16% FLORIDA LIENS 18% FLORIDA LIENS 18% Slide 19 TENNESSEE Redeemable Deeds 12% TENNESSEE Redeemable Deeds 12% ARIZONA LIENS 16% FLORIDA LIENS 18% FLORIDA LIENS 18% IOWA LIENS 24% IOWA LIENS 24% Slide 20 TENNESSEE Redeemable Deeds 12% TENNESSEE Redeemable Deeds 12% ARIZONA LIENS 16% FLORIDA LIENS 18% FLORIDA LIENS 18% IOWA LIENS 24% IOWA LIENS 24% ILLINOIS LIENS 36% ILLINOIS LIENS 36% Slide 21 TENNESSEE Redeemable Deeds 12% TENNESSEE Redeemable Deeds 12% ARIZONA LIENS 16% FLORIDA LIENS 18% FLORIDA LIENS 18% IOWA LIENS 24% IOWA LIENS 24% ILLINOIS LIENS 36% ILLINOIS LIENS 36% TEXAS Redeemable Deeds 50% TEXAS Redeemable Deeds 50% Slide 22 HOW ARE THEY SOLD? Tax Deeds are sold to the highest bidder (may be live auction, online auction or sealed bid). Tax Liens are sold by various bidding procedures. The most common is the bid down interest rate. Other types include high bid, lottery, round robin, and others. Slide 23 TAX LIEN ADVANTAGES Tax liens are a high priority liens, higher than mortgages and trust deeds! Interest rates are high to encourage investors and penalize taxpayers, anywhere from 8% to 18% to 24% to 50%! The security behind the loan is usually very high. The liens may only be 5% up to 50% of the value of the property. When a lien is converted to a deed, most other liens are wiped out, including mortgages and judgments. Slide 24 TAX LIEN DISADVANTAGES NOT VERY LIQUID! There is NOT a secondary market for selling Tax Lien Certificates In some States the redemption period is up to four (4) years Totally at the mercy of the property owner as to when you will get your principal and interest back (returned to you when owner redeems). If you are not paid back you can foreclose on lien to obtain ownership to the property (turn lien into a deed). Slide 25 TAX LIENS THE PERFECT UNION Investing in Tax Liens inside a long term retirement account eliminates the disadvantages TAX LIENS IRA Slide 26 Delinquent taxes are advertised in the local newspaper The sale will be open to the general public Register as a bidder in the name you want to appear on the Certificate/Deed (individual, company, self-directed IRA) Bid on the liens or deeds by different methods according to the State Statutes The winning bidder pays cash or certified funds at end of auction. (ADVANTAGE OF HAVING A CHECKBOOK IRA) The investor will be issued a tax lien certificate or a tax deed in Registered Name When lien redeems the check will be issued back to the name on the Certificate Once you have the deed you can implement your exit strategy. When held by IRA any bills are paid from IRA account and income goes directly back into your IRA account. Step by Step Process Slide 27 27 I NAME OF PRESENTER Disappointed to make 24% - I wanted the house !!! Slide 28 28 I NAME OF PRESENTER Can also use this strategy for getting properties for Pennies on the Dollar When the $2200 lien was not redeemed the investor received the deed to this property - free and clear of any liens. Slide 29 29 I NAME OF PRESENTER When the $1600 lien was not redeemed the investor received the deed to this property - free and clear of any liens. THAT IS A GRAND SLAM HOMERUN !!! Slide 30 THE TREND. Every year a larger number of taxing jurisdictions are moving to online auctions. Now investors world-wide can take advantage of the American Tax Lien & Deed System Slide 31 TAX-FREE WEALTH By Tom Wheelwright In Chapter 17 Assets that work well in a Government Qualified Plan: Tax Liens Hard Money Loans Stock Trading Gold & Silver Bullion Slide 32 TAX LIENS Additional training on How to get the Tax Sale Lists Due Diligence to ensure Tax Liens will Redeem Due Diligence to increase the odds of you getting the house Different Methods of Bidding on Tax Lien Certificates How to compete against the large institutional investors How to buy Tax Lien certificates over the counter How to buy Tax liens and Deeds through Internet Sales Advanced Strategies Slide 33 TAX LIENS Contact Dr. Tax Lien Dr. Marijo Wilson Text: 941-799-1552 Email: DrTaxLien@gmail.comDrTaxLien@gmail.com Slide 34 D IRA Club and Dennis Blitz The next time you contact the IRA Club make certain to thank Mr. Dennis Blitz for sponsoring this training event. THE PERFECT UNION OF SELF- DIRECTED IRAs & TAX LIENS Slide 35 D Questions Slide 36 THANKS Contact Information: DrTaxLien@gmail.com 941-799-1552 Dr. Marijo Wilson, PhD Instructor