BiggerPockets

Do you have to be a resident of the state/city you are buying them in?

How much cash do you need to get started?

What are the possible ways you can get screwed over?

Thanks!

My goal is to invest some money and make a healthy profit. sort of like a CD only one that actually pays out more than 2% interest!! I'm not really looking to take ownership of the property, my ideal situation is that I just make some interest. However, if necessary, I could come up with the cash to go through the legal fees and other costs associated with taking over / selling / holding the property.

No you can buy them anywhere. Cash Needed depends they all cost different amounts. There are not to many ways to get screwed over but it just depends on what your looking for, I don't know how much you know about tax liens but in some cases you don't get the actual house the people pay off the taxes and you just make a small amount.What I like to do is contact people that are 2 to 3 years behind and that don't want the house any more and just buy the house from them and pay the taxes. You can get the houses super cheap.

Brian Haskins

This can be done, provided there are also no liens on the property. The only way a lien is dismissed is for the property to go through the entire process and is not redeemed.

Even in certificate states all you have to do is purchase a certificate, then pay off the taxes so no other certificates are sold, then you have the right to the property after the redemption period. Or at least all the funds the property auction brings.

Paying off the taxes and buying the property prior to certificate sale will sometimes make you responsible for any and all liens not yet dismissed.

There is so much to know about tax lien certificates and tax deed sales. Each state and county have different laws. I suggest visiting [LINK REMOVED] It is a great source of information for tax lien investors of all levels. For those still learning, they have several FREE eBooks available. For advanced investors, they have all the contact information and listings to successfully invest across the country. For corporations and large investment funds, they have local investment agents and real estate agent contact information. They even have an online market for investors to buy and sell tax liens/deeds between themselves. A key resource for you, Tyler, would be their lists of OTC liens or Over the Counter liens. These are the lists that counties hold of liens that weren't sold at auctions. Buyer beware, though, because sometimes these properties aren't worth the investment so be sure to investigate them all. Most over the counters are liens still held from the last 2-3 years. This website is a great resource no matter what you are looking to do!

Originally posted by Dennis Xenos

12% is the max you can get. Do your reasearch. VERY VERY IMPORTANT

Not sure where you get that from. Depending upon the state the interest alone can get as high as 25% and it is written into the state laws. If you actually get the property then you could get over 1000% return. I bought one for 1376.00 and am in the process of selling same for 125K wich is well over that 1000%.

Originally posted by jawsette

Originally posted by Dennis Xenos

12% is the max you can get. Do your reasearch. VERY VERY IMPORTANT

Not sure where you get that from. Depending upon the state the interest alone can get as high as 25% and it is written into the state laws. If you actually get the property then you could get over 1000% return. I bought one for 1376.00 and am in the process of selling same for 125K wich is well over that 1000%.

What are the process once you have the lien and the property owner has not pay you?

Originally posted by jawsette

Originally posted by Dennis Xenos

12% is the max you can get. Do your reasearch. VERY VERY IMPORTANT

Not sure where you get that from. Depending upon the state the interest alone can get as high as 25% and it is written into the state laws. If you actually get the property then you could get over 1000% return. I bought one for 1376.00 and am in the process of selling same for 125K wich is well over that 1000%.

What are the process once you have the lien and the property owner has not pay you?

There is only one or two states that use a reverse auction. Most of them use the taxes as the beginning bid and the price goes up from there with the interest rate set in stone by the state law.

And I believe it is texas that the interest rate with penalties can get to 25% of bid with only 6 months redemption period.

If the owner does not redeem then your return will be as high as you can sell the property for vs your actual cost of being high bidder and foreclosure plus repairs.

Do you have to be a resident of the state/city you are buying them in?

I suspect not in most states. You do not have to be in Maryland.

How much cash do you need to get started?

I started with a $3500 lien and spent another $7K in assorted expenses. I got the house and resold it for $40K without doing anything to it. That was a home run. Don't expect that to happen often but is can and does happen. It shows you can start with a modest amount in this game.

What are the possible ways you can get screwed over?

1)The Number one risk is not Knowing the rules and how they affect you.
2) The next biggest risk is bidding too much.
3) In Baltimore where I bid the city can screw things up.- Voided liens get lower interest, receivership can wipe out a tax lien.
4) Deterioration of vacant properties
5) fire for vacant or uninsured properties
6) Bankruptcy tying up you money an possibly reduced interest.
7) federal tax liens

I have had problems with 2-4, never had an issue with 5-7.