Investing in Tax Liens
Investing in Tax Liens
- Next Steps
- Asset Purchase Directive
Each state and county has their own requirements for purchasing tax liens. Whether you purchase tax liens in person or online, in general you will be required to open a tax lien account with the state or county you are interested in purchasing from. You must open the account in the name of your IRA.
The titling should read: CAMA SDIRA FBO [ YOUR NAME ] IRA. This account is opened in the name of your IRA for the sole purpose of purchasing tax liens either online or in person. Please forward all account documentation or verification to us.
Once the tax liens are purchased, the documentation should be mailed to our office so we may record the liens into your account at the purchase price.
Many states and counties offer tax liens at auction and will host websites that provide a list of available properties with pictures and information of each property. You are responsible for assessing the value of the tax lien and the underlying asset supporting its value.
Title and Vesting Instructions
All contracts and documents related to a tax lien purchase must adhere to these guidelines:
Documents should note that the ownership interest is held in the following name: CAMA SDIRA LLC FBO [ YOUR NAME ] IRA
The owner’s address should be listed on all documents as:
512 East Township Line Road
5 Valley Square, Suite 200
Blue Bell, PA 19422
Documents should instruct that all distributions of income by the business venture accruing to account are to be issued in the above owner’s name and delivered to the above owner’s address for deposit in your CamaPlan account.
Because title to the ownership shares is held in CamaPlan’s name (above) for your benefit, only authorized employees of CamaPlan can legally execute the private placement for your account. Documents must be mailed, faxed, or delivered to our offices sufficiently in advance of the desired transaction date for our review and signature before their return to the offerer. Also, CamaPlan will not sign any document until your signature indicates that you have “read and approved” it. Thus, each document must include a statement to that effect and your signature thereto.
There is one exception – because we do not need to review due diligence paperwork, they do not require our signature.