OfflineTax liens are a great way for an investor with little money to get in to the real estate market. I often encourage a new student to buy a few liens so that they can start putting dollars to work quickly. The returns are very good, usually between 12% to 18%, and the redemption periods are often two years or less.
Where do I start? First of all, you need to find out if the state you are interested in sells tax liens. Some states only sell deeds. (That discussion is for another day.) You then contact the county that you are interested in buing a lien. The office you want to contact is often called the Tax Collector. Find out where a list can be found in order to look at available liens. You will usually make your purchase through this office.
This is only a thumbnail on how to start. You can call in to the advisory line and get more help on what to do.
Good luck in whatever venue you chose to invest.
Roy Voeks
Official RE Coach
You have to understand that a tax lien on a property for unpaid property taxes is mandated by law, and depending on the county they must offer the tax lien at auction. This does several things. First, and foremost this gives the owner a 4 month to 3 year extension in which they have to pay the taxes depending on the state laws. Otherwise the county would have to foreclose immediately. Second, it gives the county much needed revenue to operate. Since the majority of property taxes go to fund schools this money is needed by the counties.
Less than 10% of properties with owner-occupants end up going to foreclosure. Even when the taxpayer does not redeem within the allowed time, and the person whom purchased the tax lien does foreclose they have the option to rent or lease back the property to the owner.
Are some investors going to foreclose and move people out? Yes. However, I submit to you that most are just looking to make an investment that can earn good interest (16 to 36 percent), and at the same time are providing a service to both the counties and the owners.
if you don't know much about tax liens, a great book to read is Profit by Investing in Real Estate Tax Liens by Larry B. Loftis
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
Another great book is " Real Estate Tax Liens and Foreclosure Deeds" by Don Sausa
Laura
Great forum Roy
I have put together a list of all 50 states and tax sale information state by state, if they do liens, what %, what redemption period, deeds, over the counter sales etc.
If anyone is interested in a list of all 50 states and basic tax sale info for each one. Send me a private message with your email address and I'll send it your way.
I have put together a list of all 50 states and tax sale information state by state, if they do liens, what %, what redemption period, deeds, over the counter sales etc.
If anyone is interested in a list of all 50 states and basic tax sale info for each one. Send me a private message with your email address and I'll send it your way.
Couldn't you just post it here so that we will all just have access? Or a link?
Thanks!
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"