Tax Lien Investing can be a mystery. This presentation is to help provide basics on how to buy tax liens in the State of New Jersey.

1. TAX LIEN INVESTING IN NJ
CREATIVE INVESTING IN 2013
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2. Tax Lien Investing 101
• Initial Buy: 0 to 18% depending
on lien amount and municipality
• Subsequent Taxes: 18% per
redemption
• Some municipalities have a
year end tax penalty to the
homeowner between 2-6%
depending on township
• Buy at auction
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3. How are Tax Liens Created?
• A tax lien is a lien on a property
for non payment of tax.
• Each and every year, owners of
real estate that fail to pay their
property taxes have a tax lien
created on their property.
• This is a financial obligation to
pay overdue taxes.
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4. Why Invest in Tax Liens
• Income
• Tax Liens accrue finance charges of up to 18 percent
• Safety of Investment Capital
• Liens are secured by their first priority on real estate so
investment will be returned
• Diversification
• Liens are diversified as there is little correlation to other
investment markets
• Investment Capital
• Initial investment can be as small as $100 for a lien but
must make further financial commitments to maintain lien
after purchase
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5. What are the Risks?
• Length of Investment
• Can take greater than 2 years to recoup your investment if
homeowner does not redeem
• Reduced Return on Invested Capital
• If Homeowner declares Bankruptcy then Judge can just
provide your investment capital back with an adjusted lower
return
• Liquidity
• No organized second market so cashing out position is
hard but this is starting to change with websites such as
www.bigbidder.com and www.lienlog.com
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6. How to Find out about Tax Liens
• Each municipality in the state of New Jersey has a
specific tax lien auction date. This auction is
municipal rather than county based
• Each municipality tax collector must setup a tax list
prior to tax sale auction with legal property
description and amount due on the lien
• You can find out about tax liens by calling the tax
collectors office of each municipality or you can get
a subscription to list compiling sites such as:
www.liensource.net or
www.njtaxlieninvestor.com
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7. Auction Process
• Tax lien auctions will use one of the following
five methods to determine the successful
bidder:
• Bid Down
• Interest Premiums Paid
• Randomly Selected Winners
• Rotating Winners
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8. Steps before coming to the Auction
• Downloaded the Tax Lien List for Your
Target Township
• Due Diligence on the Tax Lien You wish to
buy:
• Picture of Subject Property
• Mortgage/Other Lien Search
• Analysis of Market Value of Property
• Complete target interest rate and/or
premium analysis prior to auction date
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9. • Anbar is a boutique investment firm geared toward creative investing in tax
liens
• Anbar primarily deals in the housing and commercial tax lien markets across
key markets
• Anbar has deployed capital in tax liens on real estate assets valuing over
$1MM over the past 4 months
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10. Ask Us
Thought of a Question:
@Ankit_RER

11. Appendix 1: Sample NJ Tax Lien Certificate
• Initial Buy: $2,622 including
taxes and water charges
• Initial Return: 0-18% per annum
• Subsequent Redemptions: All
at 18% per annum
• Some municipalities have a
year end tax penalty to the
homeowner between 2-6%
depending on township
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12. Appendix 2: Anbar Management Team
Ankit Duggal Jahanzeb Jabbar
Investment Director Operations Director
• Investment Director for Anbar Holdings • Operations Director for Anbar Holdings &
& Managing Partner for RER LLC Marketing Manager for American Express
• Over 9 years of experience in the NJ • Over 2 years of experience in financial
Real Estate Market services marketing and valuations
• Experienced Realtor, Mortgage Banker, • Experienced Marketer & Private Investor
Title Officer & Private Investor
• Experienced in Tax Liens, Buy and • Experienced in Tax Liens & New Product
Hold Properties, and Rehab Properties Development