Comments on: The Tax Lien Certificate Money Tree

By: Rick Dawson

Rick Dawson — Wed, 10 Nov 2010 14:25:10 +0000

As others have said, don’t just jump into this. There is due diligence on the property itself, then proper legal noticing must be done all along the way or your eventual attempt to get a deed may be unwound.

Also, note that the overwhelming majority of tax liens against valuable properties are redeemed. That doesn’t meant that tax liens aren’t a good investment for a return on your money if you have a sufficient investment.

Here are the top 5 traps I’ve encountered: http://www.taxsale.net/tax-lien-sales-5-deadly-traps-lurking-just-below-the-surface/

By: Anonymous

Anonymous — Mon, 26 Apr 2010 06:53:25 +0000

Be certain check the items οn this list fοr tax sale prοperties befοre yοu buy a tax lien certificate οn the prοperty and yοu’ll refrain frοm taking an un-essential peril with yοur cash. *there are very lοw annual taxes fοr the prοperty (lοwer than standard fοr the area) *yοu can’t find the prοperty οn the tax map *yοu can’t lοcate the prοperty tο cοnsider it *the prοperty has an unknοwn prοprietοr *the prοperty is land lοcked with nο right οf way *the prοperty is nοt big sufficient οr nοt the cοrrect shape tο build up οn (check zοning) *there are priοr tax liens οn the prοperty and the priοr lien hοlder is at the tax sale *the prοperty is οr has been cοntaminated (check the state envirοnmental internet site) *the prοperty is cοndemned οr with regards tο tο be cοndemned (eye-ball the prοperty οr check with the municipality) *the grade οf the prοperty is tοο steep tο build up οn *the prοperty is in a flοοd zοne These are just a heap οf reasοns nοt tο purchase a tax lien certificate. I dοn’t want tο give yοu the incοrrect idea. Investing in tax liens may be highly prοfitable.

By: John McDouglas

John McDouglas — Sun, 01 Nov 2009 09:53:05 +0000

You will really need to do your due diligence if the owner doesn’t pay at all and you might just be paying for fruitless raw land. A lot of these tax lien auctions are online now as well, which is great for convenience, but you do have to call and dig around to learn about what your property is worth. Lots of real estate agents don’t have jobs right now and you may be able to hire them for temporary work just looking up properties for you.

If you are brand new, there’s lots of online reading, and it really depends on your state. I recommend having a couple of books if your just starting. As Justin said, Larry Loftis’ “Profit by Investing in Real Estate Tax Liens” is a comprehensive start and also I would add for beginners, Don Sausa’s “Complete Guide to Real Estate Tax Liens and Foreclosure Deeds: Learn in 7 Days”.

By: Justin McClelland

Justin McClelland — Sat, 31 Oct 2009 03:06:15 +0000

The real cost of the tax lien is the delinquent tax amount. If an owner didn’t pay $2,500 in real estate tax, then the gov’t would put a lien on the property for that amount. Then they sell it to the person who bids to take the least amount of interest on the certificate. Once the tax lien is sold, if the homeowner who was once tax delinquent pays their real estate tax, they then owe the tax amount plus interest to the tax lien holder.

I can hardly cover it all in this comments section. And some states have Tax Deed sales, completely different process. However, a very good book on both subjects is, “Profit by Investing in Real Estate Tax Liens” by Larry Loftis. This will explain it all.

By: Mike

Mike — Sat, 31 Oct 2009 02:48:39 +0000

I have not participated in an auction yet myself but I have studied the concept. To purchase the lien you pay the amount required to bring the properties taxes up to date. This can be hundreds or thousands of dollars. There are several books on the subject.

By: Dave Sharp

Dave Sharp — Sat, 31 Oct 2009 00:36:00 +0000

I know nothing about Tax Liens and now have a ton of questions. You say that bidding is based on interest rates, but what of the real cost? How much does it cost to purchase one of these liens?