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  • Casual Articles - Tax Lien Investing in New Jersey - Calculating How Much Premium You Can Pay

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    ware that does this for you like Tax Lien Manager.

    Once you know the return that you want, you then have to know how many tax quarters are open at the time of the sale and

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    In order to calculate how much premium you can pay for a tax lien, you first have to know what your bottom line is. In other words, what is the lowest return that you are willing to accept on your investment? Then you can calculate just how much premium you can pay and still make the profit that you want. I use Tax Lien Manager, a software program for New Jersey tax lien investing created by DataVentures I LLC to do this for me. Tax Lien Manager computes premium for a 4%, 5% and 6% return based on the assumption that the lien will be held for a minimum of one year and that you will pay all subsequent taxes when they are due. Here’s how you can calculate how much premium you can pay if you don’t have software that does this for you like Tax Lien Manager.

    Once you know the return that you want, you then have to know how many tax quarters are open at the time of the sale and w

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    to accept on your investment? Then you can calculate just how much premium you can pay and still make the profit that you want. I use Tax Lien Manager, a software program for New Jersey tax lien investing created by DataVentures I LLC to do this for me. Tax Lien Manager computes premium for a 4%, 5% and 6% return based on the assumption that the lien will be held for a minimum of one year and that you will pay all subsequent taxes when they are due. Here’s how you can calculate how much premium you can pay if you don’t have software that does this for you like Tax Lien Manager.

    Once you know the return that you want, you then have to know how many tax quarters are open at the time of the sale and

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    Once you know the return that you want, you then have to know how many tax quarters are open at the time of the sale and

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    l be held for a minimum of one year and that you will pay all subsequent taxes when they are due. Here’s how you can calculate how much premium you can pay if you don’t have software that does this for you like Tax Lien Manager.

    Once you know the return that you want, you then have to know how many tax quarters are open at the time of the sale and

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    ware that does this for you like Tax Lien Manager.

    Once you know the return that you want, you then have to know how many tax quarters are open at the time of the sale and what the annual taxes are. Let’s assume that you are going to a tax lien sale in August and that the municipality is on a calendar year. As of August 10th, you will be able to pay 3 quarters of open (subsequent) taxes on any tax liens that you buy.

    When you pay premium for a tax lien certificate, your profit consists of the redemption penalty + the interest on your subsequent tax payments. Your total investment is the certificate amount + premium + subsequent taxes paid. Your total return on your money is total profit divided by your total investment:

    Redemption Penalty + Interest on Subsequent Taxes _______________________________________________

    Certificate Amount + Premium + Subseque

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