Need Info On Tax Liens
Hi, I'm new to tax liens. I would like to have more info on what it is, who does it and why, who invests in it and what type of return they get. I already went over many websites, but none of them trully answered my questions. Since you guys seem to know a lot about liens, i thought you could help me out.
Many Counties have tax lien sales published online
Tax lien sales are not for everyone, as many require payment in full the day of the sale.
Tax lien investors will often get in trouble when they fail to investigate the background of the property. Without research you will have no idea whether they're buying a house or dirt.
If title and bankruptcy research is not done your investment can become worthless when the original owner of the property declares bankruptcy creditors and the IRS can take priority over tax lien holders
Take a look at the following articles
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=547
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=314
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=211
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=81
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=79
In addition you will find over 18 pages of forum post on this subject.
Research is your key in investing successfully so familiarize yourself with TCI read all that you can.
Avoid any book or program intended to convince you to buy tax liens its "hype".
It's like any form of real estate investing you will need to work at it Hype claims or implies you can get a house for just pennies on the dollar with tax liens and yes some have done it but as a whole it does not work that way.
I buy tax liens in many states and get an average of 16% return for my investment from homeowners paying them off and every once an a while I actually get a piece of real estate out of it.
It is a great form of investing and for me a lot of fun, but one should learn all they can about the subject and most importantly research the background of the property.
Let me give you an example of a lot that I got from a tax lien purchase. This lot was so small that you could not build anything on it, but it was between 2 other lots that were 5 acre plots and a corporation purchased both lots and wanted to build and my lot stuck in the middle of the two caused a bit of a problem for them so they made me an offer I could not refuse and I got over 400% return for my investment.
Good Luck
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