How You Can Pay Taxes and Buy Houses with Bitcoin

By
Evander Smart @EvanderSmart
October 30, 2014

Property taxes are a very important revenue stream for any municipality. These taxes pay for things like sanitation, police, and fire departments throughout the U.S. and Canada. And in any county, city, or state you will find hundreds or even thousands of properties that have been foreclosed due to delinquent payment of these property taxes. Investors have quietly made small fortunes investing in these “tax liens”, which get the local government the money they need, and allow investors to many times pickup properties for pennies on the dollar. Now if you own Bitcoin, you can join the real estate investment market through a new California-based service, and buy houses with Bitcoin.

Also read: First Major Bitcoin Real Estate Purchase Recorded

Buy Houses with Bitcoin In California, Where Bitcoin Is “Legal Tender”

The company is called Tax Lien Ventures, and they are taking full advantage of the recent law passed in the State of California. The new law grants Bitcoin as a fully “legal tender” currency, and thus allows the common owner of Bitcoin to invest in tax lien certificates. A tax lien comes to be when the property tax falls into delinquent status, and the owner has not paid property taxes within a certain period. If the default extends long enough, the house may be foreclosed upon. The house will have a “first lien” put upon it that will supercede even the bank’s mortgage. Any investor can look up the list of delinquent properties with the county, city, or state, and invest in a tax lien. If the investor brings the taxes full, they can take ownership of property, or get up to a 36% return on their investment. If the owner of record cannot make the tax payment, and compensate the investor, within a given period.

You can now invest in tax liens and make payments through this California-based company for any listed property not just in California, but also throughout the U.S. and Canada. Generally speaking, the investor will get the interest on the lien, which is anywhere from 4% to 36% per annum, depending on the municipality and time in delinquency. Indeed there are many, many instances where the property is taken over by the investor. There is a grace period for the owner of record to make the payment of anywhere from 12-36 months. With a little research and sound judgement, this is a viable investment market where either you make interest or you get a house, with no mortgage, for a mere pittance. Investors who use Tax Lien Ventures can also get “fractions” of multiple tax liens, to increase their odds of securing property if that is their goal. The service will also give you the option, in the event you do obtain a property for just the taxes owed, to cash out, or keep the property for your use.

The properties that Tax Lien Ventures has in their directory must meet the following criteria, to avoid “junk lien” status:

  • Principal price of tax lien must be less than 5% of the property market value
  • Not more than one prior year tax lien issued for the same property
  • No Federal liens, criminal activity reports, or title issues on the property
  • Real-estate must be located within proximity to a large city and water
  • Property must not be abandoned, preferably has current occupants
  • Official Tax Collector and Property Appraisal records must match
  • At least US$ 40,000 difference between the cost we are ready to pay at tax sales and property value

For more information, click here to access their website. Once there, you can sign up to see their full directory of homes in the United States and Canada. All research and account management is done online as there is no need to go to any government office to file paperwork.

Do you think this service would help you invest in real estate? Know anyone who received the property for a tax lien? Share above and comment below.

Images from Shutterstock.

Show comments