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Frequently Asked Questions from Webinar with PIP West March 9, 2011 Q: Attending all the public auctions sounds like it would require a lot of resources. How many PIP people are on your staff to do this (or do you contract agents working on your behalf)? A: We have a network of staff and agents that work for us locally (within the markets we operate).

Q: What if I do this in Texas, cannot sell the property at satisfied price or just want to hold it, can you arrange to rent it? A: Yes, we will arrange anything necessary on your behalf.

Q: Do you foresee Illinois going to online in the future where it would make that not a good state? A: Due to a wide number of variables and with the exception of Cook County, we do not anticipate Illinois tax sales will go to an online format. Of course, we certainly hope that they do not as well.

Q: I live in CT where tax lien/deed investing is next to impossible. What is the best way to invest in tax liens in Florida? Nearly ALL auctions in Florida have gone to an online format. A: Information on registration and how to bid in Florida can be found on all tax collector websites. Joanne has a course on Buying Tax Liens Online that covers purchasing tax liens in the Florida online tax sales.

Q: Does "quiet title" remove an IRS lien against the property owner? Can an IRS lien be removed or does mean a loss of principal? A: If you initiate a quiet title action on a property with an IRS lien attached, there is a 180 day notification period to the IRS. In our experience, we have never seen a loss of principal when an IRS lien was attached. The quiet title action DOES remove the IRS lien, but there may be additional requirements involved.

Q: What are the steps of due diligence that are important in avoiding a bad investment Steps will vary, depending on location, type/use of property and the state/county laws affecting the lien. A: A thorough analysis including title search and physical inspection would be necessary on a deed in a state like TX; whereas in lien states like FL or IL, historical "patterns" of tax payments and valuations are your primary source of due diligence.

Copyright ©2011 Tax Lien Consulting LLC

Frequently Asked Questions from Webinar with PIP West March 9, 2011 Q: What are the options on selling a property if marketable title is not obtainable? A: We could not provide an answer to this question without understanding WHY a marketable title is not obtainable. There are numerous variables that one may assume will cloud the title and keep it from being marketable. Many of these variables are easily cleaned from the title, while others may require more legal process and expense.

Q: What is the minimum and maximum needed to invest with an agent, how long does it take to see returns? A: The minimum investment with PIP-West, is $20,000. There is no maximum. The length of time to see redemptions ("return") will vary on the targeted state of investment. In a high redemption state such as IL, you could see returns in as little as a couple of months.

Q: How can foreigners buy tax deeds without being in USA or having a USA bank account? A: Those that reside outside the USA can buy tax liens and tax deeds through an agent such as PIPWest. The counties require an EIN/Tax ID# to which they report the interest income to the Internal Revenue Service, and thus PIP-West requires the same. Another general requirement is a methodology for sending the redemption funds to the lien holder/owner, and this may or may not require a USA bank account.

Q: Can you buy Over-the-Counter, or "left over" liens online? Where and how? PIP-West does not engage in the purchase of "left over" liens, or Over-the-Counter liens. A: Although there is a substantial market and some investors profit from "left over" liens, PIP-West feels that if the liens were not purchased in the initial tax sale by professional bidders and they are "left over", there is probably a good reason. However, we do usually have a large supply of good/viable liens available for immediate assignment. These will be liens typically earning between 25% and 90% (upon redemption) and are ripe for foreclosure within 6-9 months.

Q: Once a lien certificate is purchased and all associated costs are paid at the auction, what other cost would be expected? A: The answer to this question will vary depending on the state you invested. Generally speaking, there will be notice fees, assignment fees, sub-taxes, or otherwise. The fees vary widely from one state to the next. Copyright ©2011 Tax Lien Consulting LLC

Frequently Asked Questions from Webinar with PIP West March 9, 2011 Q: What is the first step a person or a small business should do to start a tax lien business? A: This is question for your attorney and will vary by state. We do not have the legal knowledge to answer this question for you.

Q: What are the best tax deed counties in Texas, and why? A: This falls into a bit of a trade secret category for PIP-West. However, as a new investor wanting to get started in TX, they should focus on the largest and most frequent sales. This would be Houston, Ft. Worth, and Dallas.

Q: How can we find investors to transfer the tax lien certificates we purchased? A: Contact PIP-West

Q: Are you allowed to purchase tax liens in a state that you do not live in? If so, how do you do that? A: There are very few states which do require that you have a residence within the state in order to buy tax liens. In the majority of the states, this is more of an exception than the rule.

Q: Can I purchase my first tax lien at $1,000, or will I need a lot more? A: This will vary based on the state you are investing. Generally speaking, viable tax liens sell for $250 and above. The minimum investment to invest with PIP West, however, is $20,000.

Q: Overbid refunds return - Do you know someone who does this business? A: This questions is beyond what we do, we purchase tax liens and redeemable tax deeds, we do not get involved in collecting overbids or excess proceeds. Joanne has a course called Tax Foreclosure Fortunes that addresses this strategy.

Copyright ©2011 Tax Lien Consulting LLC

Frequently Asked Questions from Webinar with PIP West March 9, 2011 Q: Once I purchase a tax lien, I have to continue making quarterly payments for a 1yr or 2 until redemption, correct? A: I believe that you are talking about NJ were property taxes are paid quarterly. PIP West does not invest in NJ. Also you do not have to pay the subsequent taxes, but in some states it is advantageous for you to do to so, NJ being one of those states.

Q: Where can Tax Liens be found Online .......State by State? A: PIP West stays away from the online tax sales, and we only invest in the most profitable states, so we do not know about all the states and counties that have online tax sales. Also more counties have online tax sales each year. Joanne has a course, Buying Tax Liens Online, which is updated yearly and lists all of the counties that have online tax sales.

Q: What is the first step I need to do to get started? To get started with an agent, contact PIP-West at [email protected] or [email protected] and request information. To get started on your own, contact The Tax Lien Lady, Joanne Musa at [email protected] .

Copyright ©2011 Tax Lien Consulting LLC

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