Question To Experienced Tax Lien Investors, Please...
Hello,
I am an experienced Real Estate investor and well diversified in rentals, rehab, singles, doubles and commercial property. My business is doing very well and I would like to invest some of my profits in to higher return investments. I have seen all of the TV commercials and have read some articles about tax sales. I have also read articles stating that the amount of properties at tax lien sales have been dropping significantly over the last 5-6 years.
- Is this really a good area to invest in?
- If so, any courses/teachers you would or would not recomend?
- Do you have to attend the sales, I have read you can purchase through the mail?
- Do you continuously travel around the country hitting different counties each month?
- Is this practicle for investing $50k-$100k? If you go to a sale and they all pay off in 2-3 months, you have to find another sale to get your money working again?
- any other pro's or con's you have would be helpfull.
Thanks for your time and help!
DL
I haven't done one yet (not popular in Utah) but I would sugest you read "The 16% solution" I got it from the library and read the main text in less than a day. It is at least a good start. I forgot the author's name but I'm sure you can find it at your library. if not PM me and I'll get the authors name. I bet www.Amazon.com has it too.
Josh
[addsig]
lembod-------------------
From what it sounds like to me, you would like to buy tax liens for the investment return?
These days there are an awfully lot of people who are thinking the same as you are and have already starting going to tax sales. Also, in the larger-population counties with lots of liens, the wall street investors come in and buy many of the liens or drive the returns down to 8% or less.
You might be able to invest in a state where the winning bidders are choosen by lot. However, if you do that, it is likely that you will not be able to place enough money to make it worth your while. That is, unless you do so in some place geographically close to you so you don't spend much money or time on the situation. I'd suggest telephoning and talking to treasurer/tax collector's offices where you might invest and ask how much competition there was last year and how much interest there seems to be this year. I'd guess that it is more than previously.
If you want better return, you might consider buying bargain properties at substantial discounts from market value. Since you already know about properties and real estate investing, there is not a lot for you to learn. Use your already-acquired knowledge to make it easier for you.
And yes, the liens will pay off over time and you will have to go out and reinvest your money. Very few good properties will end up in an investor's hands through the conversion of a tax lien to a tax deed.
Good Investing***********Ron Starr*********
I buy sometimes in Florida after the sale by mail. Ask the county about PRIOR year liens. Often the investor has bought up everything for this yr, but there are some old ones on the table.
Lembod,
This is a very good area to invest in, possibly the best in the real estate investing arena. The reason is that you are dealing with the most motivated of sellers, the tax delinquent who is going to lose his home to a tax auction.
I suggest that you contact owners of homes who are several years delinquent. The tax auction may be well into the future, however the tax delinquent often does not know that.
If the tax delinquent cannot pay the taxes and is willing to sell, you can either purchase the property at a substantial discount or you can option the property and sell it at a significant profit. Either way, you will typically get the home at 50% of the value or less.
If you wish, you can call me to speak about details.
Mitchell Goldstein
518-439-6100 < 11PM EST
..the name of the author of the 16% solution is Joel S. Moskowitz
Everyone--------------
Did you notice a difference between my post and that of Mitchell Goldstein?
Does it seem contradictory to you?
I think I can explain this. I tell the truth.
Mitchell Goldstein wants to sell a tax sale investing program. He may or may not tell the truth. I find it interesting that he did not mention his interest in this area in his post tauting tax sales investing.
Who do you trust?
Here is some more information in case you wanted to take advantage of his training:
To join the TAX SALES COACHING PROGRAM
GOTO http://taxsales.org/coachorder2.html
To contact Mitchell, the Tax Coach directly
E-Mail **Please See My Profile**
or call from 7:30 AM until 12 midnight EST, 518-439-6100
Good Investing***********Ron Starr************
I've been watching the tax liens and tax deed auctions for awhile in my area. The majority of the properties that have built up liens for awhile are in such bad neighborhoods and in such bad repair that by the time the liens are paid off, and you spend your work and time on fixing it up, you still cant make enough selling it to have a profit. I'm sure that's not always the case, so I still watch, but it takes ALOT of research so you dont get burnt.