Rich Dad Education – Real Estate Blog

Dedicated to Elevating the Financial Well-Being of People from All Walks of Life

Introduction to Tax Liens and Deeds

It is the goal at Rich Dad Education that every student that passes through its program is presented with an education that puts him or her in a position to succeed. This is the driving force behind the company, from when a student first enters Rich Dad Education’s Free Workshop all the way through Rich Dad Education’s Elite Training. These articles are designed for existing students to serve as a refresher and for those that may be new to the Rich Dad universe to see a small sample of what we offer students each and every day. This series of articles will involve tax liens and deeds.

Rich Dad Education’s students come from every financial background imaginable. The beauty of tax liens and deeds is that no matter what your financial situation may be, they are viable strategies that you can start implementing almost immediately. Perhaps due to the lack of capital requirements and the ease in implementation, tax liens and deeds are popular among those that learn the strategies. Oh, and the fact that you can end up with a home for just pennies on the dollar doesn’t hurt either.

How Tax Liens and Deeds Work – The Super Succinct Version

  1. Governments tax properties
  2. If the property owner doesn’t pay by the due date each year, then the government places a lien against the property for the amount of the defaulted payment
  3. The owner is given time to pay taxes
  4. If taxes are not paid by a certain date, the government will hold a tax sale and auction off either a tax lien certificate or a tax deed
  5. You purchase the tax lien or deed

Why should this interest you?

In subsequent articles of this Rich Dad Education tax liens and deeds series, how to locate and purchase tax liens and deeds will be discussed. Consistent with formal Rich Dad Education programs, this series of articles will be all about application. It is likely that you have not heard about tax liens and deeds before – at least not as a serious real estate strategy – so here are a few advantages to get you excited about upcoming articles:

  1. Low capital requirements
  2. Sizeable ROI – conservatively varying from 6% to 24%, although higher returns in some locations are possible
  3. Extremely safe investment
  4. Accessibility from anywhere – you can gain access to online auctions across the country

These general areas of interest are very appealing to a variety of investors. In the upcoming articles of this Rich Dad Education series, the following will be covered:

  • Explaining the difference between liens and deeds
  • What is your first step to investing?
  • How do auctions work? What do you need to do?
  • The online auction
  • Due diligence on your properties
  • Step-by-step process to buying a tax lien

One final thought on tax liens and deeds: in coming up with the Cash Flow Quadrant (refer to the Cash Flow Quadrant book written by Robert Kiyosaki), Robert Kiyosaki demonstrates to us in beautiful simplicity how we trap ourselves through our mindset and actions in specific quadrants. Tax liens and deeds are a Quadrant I (the most advanced) area of investment, which will immediately attract the attention of any Rich Dad follower.


4 responses to “Introduction to Tax Liens and Deeds

  1. S. Sridharan February 9, 2013 at 9:10 am

    Seen your email and thank you for the same. I am recently Retired person and as far as Indian Tax
    limit for Retired person’s Income is concerned, it is upto Rs.2.25 lakhs (for 2012-2013) I have got Raw lands worth about Rs.10 lakhs. I want to sell them for my daughter’s marriage before next year. Here land value iis getting increased day by day. Pl. suggest me an idea, how to sell the lands with minimum tax return to the Indian Government so that I can use maximum for my daughter’s marriage, next year.


    S. Sridharan
    Chennai-600091, India.

  2. mark st amand February 11, 2013 at 11:23 am

    More info

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