Quest PA FAQ Image

  1. How can I acquire the Tax Liens?

  2. How does QPA know what properties to buy?

  3. So how do you make money?

  4. How much do I have to invest?

  5. How long does it take a lien to mature?

  6. What kind of interest rate can I expect on my investment?

  7. Do I have to pay taxes?

  8. Can I invest through my IRA?

  9. Will I incur penalties if I roll my retirement from one custodian to another?

  10. Will my money be pooled with other investors?

  11. What do I do with the money I receive from redeemed tax lien certificates?

  12. Are properties investigated before purchase at the auction?

  13. Who keeps tracks of my liens?

  14. If I do have an unredeemed lien at time of maturity what do I need to do to get the Deed?

  15. What happens after I receive the Tax Deed/Conveyance?

 

 

1.  How can I acquire the Tax Liens?

Through us of course! Purchasing tax liens is not really convenient or easy.  That's why we are here for you!  As your individually contracted purchasing agent, we will attend a number of auctions throughout the year in various states.  You will receive a flyer in the mail about 30 days prior to the auction informing you of the sale with information in regard to the interest rate and maturity for that particular state and county.

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 2.  How does QPA know what properties to buy?

Prior to an auction, our purchasing department evaluates and does extensive research on each property going up for auction.  This research includes looking at property cards, the sale history of the property, locating the property on a GIS mapping system, looking at comps of the neighborhood and being in constant contact with our real estate agents for their input as well. 

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  3.  So how do you make money?

When you purchase tax liens only two things can happen: (1) You receive your principal back plus interest of 8% to 25% depending on the state statue and type of auction the lien was purchased at, or (2) you receive the tax deed to the property that secured the lien.

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 4.  How much do I have to invest?

We suggest thirty thousand ($30,000.00) as a minimum.

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5.  How long does it take a lien to mature?

Typically two (2) years (and that varies from state to state) with at least a one (1) year process after maturity for Quiet Title/Title Confirmation. There are several auctions that we attend where the property owner only has one year to pay off the tax lien certificate or you obtain the deed to the property.

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 6.  What kind of interest rate can I expect on my investment?

Typically, the medium return is between 8% -12% but varies with each state.

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 7.  Do I have to pay taxes?

Yes.  Once you receive your Tax Deed/Conveyance after maturity then you have to pay the taxes.  A tax bill will be mailed to you from the county your lien matured in your name at your address.

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 8.  Can I invest through my IRA?

Yes, if you have a self-directed IRA.  In order to proceed, download the necessary forms from Equity Trust Company @ www.trustetc.com.  Once you have the forms, we'll be happy to assist you in filling them out and processing your investment.

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 9.  Will I incur penalties if I roll my retirement from one custodian to another?

No.  You are not penalized for changing custodians of your retirement funds.  This is also a great way to divirsify your retirement funds. 

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  10.  Will my money be pooled with other investors?

No.  Each investor will be registered in his/her name under his/her social security number at his/her address.

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 11.  What do I do with the money I receive from redeemed tax lien certificates?

Once you’ve received a minimum of $2000.00 in redemptions, send us a cashiers check made out to the County Treasurer for Tax Liens and we will take it to the next auction and purchase new tax lien certificates through the free re-buy program for the term of your contract.

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 12.  Are properties investigated before purchase at the auction?

Yes.  Extensive research is done online with each county.  Research includes aerial photographs and specific information on each parcel. 

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 13.  Who keeps tracks of my liens?

We maintain records for each purchase and copies are made for each client.  Although we do keep those records, each client must keep records and receipts of each purchase (each receipt will be mailed to you from our office) and redemption because it is bought in your name, social security number and address.  If you do have a property that goes to deed you must mail that original receipt to the county in order to receive your deed to the property.

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 14.  If I do have an unredeemed lien at time of maturity what do I need to do to get the Deed?

You must mail your original receipt (mailed to you from our office) to the County Treasure/Tax Collector/Chancery Clerks office with a recording fee and once the County receives that receipt of purchase and fee (typically $15.00-$45.00, depending on which county we purchased in) they will mail you the deed.

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15.  What happens after I receive the Tax Deed/Conveyance?

At your request we will help you with the Title Confirmation/Quiet Title process and proceed to market and sell the property.  We have contacts with reliable attorneys and real estate agents all over the country.

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