How Do Find Investors To Finance Your Tax Lien Purchases
Hi I would like to buy tax liens but not with my money. My strategy is to really foreclosed on the properties that have back taxes on them frm owners that can't either be found or are reluntanct to sell. Any suggestions on this would be worth millions to me.
Bid Dreed--(MD)-----------------
If you can't figure it out, probably you aren't going to be able to carry it off.
I suggest that you start small. Use your own money at the beginning. Get a few deals under your belt so you can show potential investors a track record. Then you will be able to get money from people to make thing happen in a bigger way.
Understand that while you can make extraordinary deals with tax sales liens, only a very small percent of the liens are going to result in deeds. And only a miniscule percent of liens on good properties will result in a deed. It will take dedication and research to find the few liens that will result in the acquisition of good properties through the lien process.
When you can actually show some deals you have pulled off, then you will have credibility. You will actually be a ot-deal investor, not just a hot mouth.
Good Investing*******Ron Starr************
Ron,
As you know I am still a relatively new professional in this business, but I have found that nothing can substitute hard work and good detailed analysis to help you significantly increase your chances of foreclosure on tax liens you purchase. I am proud to say that except for one location we have purchased from in the last 1.5 years we have been in operation, our foreclosure rate is just under 80%!! (not including those liens which have not yet gone to the end of the redemption period , of course). But it's true that the general rule of thumb is that only about 2% of all tax liens go to foreclosure, and a large percentage of those are for vacant lots and worthless real estate. I have seen liens sold on properties underneath train tracks, over a ravine, in the middle of an intersection, and so on and so forth. A Florida county tax collector told me about a poor old lady who just paid half a million dollars to buy a lien for the middle of a lake, with no shoreline! So make sure to do your homework
RC from NC
Great story about the down side!
John
Quote:
On 2004-05-15 02:30, richen wrote:
Ron,
As you know I am still a relatively new professional in this business, but I have found that nothing can substitute hard work and good detailed analysis to help you significantly increase your chances of foreclosure on tax liens you purchase. I am proud to say that except for one location we have purchased from in the last 1.5 years we have been in operation, our foreclosure rate is just under 80%!! (not including those liens which have not yet gone to the end of the redemption period , of course). But it's true that the general rule of thumb is that only about 2% of all tax liens go to foreclosure, and a large percentage of those are for vacant lots and worthless real estate. I have seen liens sold on properties underneath train tracks, over a ravine, in the middle of an intersection, and so on and so forth. A Florida county tax collector told me about a poor old lady who just paid half a million dollars to buy a lien for the middle of a lake, with no shoreline! So make sure to do your homework
RC from NC
[ Edited by GlennI on Date 06/19/2004 ]
I totally agree with Ron and RC!
I remember starting out in real estate and always hearing OPM (other people's money) and I just knew that I had to have it. But I couldn't figure it out. And as others have responded, it comes down to a trust issue. You must first prove to investors that you can do this with your own money. Only then will you be able to use other people's money successfully.
I wish you well.
Francoise
first of all in Montgomery and PG county does bulk sales by sealed bid, so unless you want to have them sit on a few hundred thousand dollars of yours for a couple of years I wouldn't waste your time, wait until they start to file the foreclosure on the liens then pull the files from the civil court and go talk to the owner and see if you can work a deal to buy their property.