Do you know how profitable your duty lien investing portfolio is? In this composition you will learn how to track your duty portfolio so that you know just how profitable you're at any time. Begin by entering all of your duty instruments into a spreadsheet or software program. The stylish way to indicator them is by county/ megacity, and duty ID( in New Jersey this would be block and lot). You will need a column or field for the instrument quantum and a column or field to input the interest rate that you're getting on the instrument quantum. For countries where decoration is bid, you will also need a column for any decoration that was paid.

You will need to have a formula to calculate the penalty quantum( in countries that have a penalty) and a formula to calculate the interest due. These formulas must also take into account how numerous days have lapsed since you bought the lien instrument. You may be suitable to ask the county treasurer for the formula that they use to calculate the redemption quantum. You'll also need to track any posterior duty payments that you make and the interest due on your sub payments. And you'll need a way to keep track of all of your charges, both the charges that are refunded upon redemption of the lien instrument and those that are not.
To calculate how profitable you are, take all the interest and penalties that are due both on the instrument quantum and on any posterior levies paid. Add to this your original investment( the instrument quantum) plus any posterior levies paid plus any charges that are refunded upon redemption of the lien instrument. This is the total quantum that you would be paid if your duty instrument redeemed. Abate your total investment from this number. Your total investment is what you paid for your duty instrument plus any posterior levies that you paid plus any reimbursable charges andnon-reimbursable charges related to your lien. This is your profit. Once you have your profit you can calculate the yield, or percent yield for each of your duty lien instruments. To do this, divide the profit by your total investment. However, you need to know how numerous days the lien was held for, If you want to convert this to an periodic yield. Multiply the yield by 365( the number of days in a time) and peak by the number of days that you held the instrument.

For case if your profit was$ 360 on a lien instrument that you held for 90 days and your total investment was$ 3600, your yield would be 10 and your annualized yield would be(.10 X 365)/ 90 = .4055 or40.5. You will need to do this for each duty lien in your portfolio. also if you want to, you can get an average yield or periodic yield for your entire portfolio.
Since every state is different the computations for penalties and interest will differ for each state and you'll need a different spreadsheet or software for each state that you invest in. I use a software program that does all of this for me, and it's customized for each state. It's called Tax Lien Manager, and it does much further than calculate the profitability of your duty lien portfolio.

duty Lien Manager will also calculate how important decoration you can pay for duty liens and still be profitable and with this program you can import standard and enhanced duty trade lists right into the program. Lien Manager also provides you with all contact data for the state performances available( Arizona, Florida, Indiana, Nassau County NY and New Jersey). Plus it comes loaded with the forms and letters you need for duty investing, like affidavits,pre-foreclosure letters, letters to shoot to the county clerk when recording your liens and further.
Source Link: https://canadiantaxrefunds.ca/how-do-you-add-tax-on-a-calculator/