Tax Lien Certificate Investing

Buying & Selling Real Estate

Tax Lien Certificate Investing

Langley, WA · Member since 2014 · 3 posts · 0 votes

Anyone ever heard of this group (U.S. Tax Lien Association), or this type of Real Estate Investing? I am in the beginning stages of REI and trying to make smart investments of my time and money. I don't want to be led down a scam road. This is 7 days of free online training. I'm sure there is some kind of a cost, as there is no free lunch, but this could be worth looking into. You'll have to click on the link below to view. I appreciate any feedback on this type of investing or better models to follow if you are aware of any. I hope my way of asking this question is appropriate for the forum. This is my first post, and I'm just trying to get off to a good start.

Thanks in advance for taking the time to respond.

Respectfully,

Justin

U.S. Tax Lien Association free 7 day online course offer

http://ustaxlienassociation.com/realestate/?utm_source=google&utm_campaign=diinterests&utm_medium=cpc&utm_term=real%20estate%20investment%20clubs&utm_content=realestateinvesting&utm_placement=therighttobear.com&sl=[name]&aid=25021211655&device=c&gclid=COu9-Jav8MECFVKPfgod2JoALw

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Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes

10y

I'm with @Ned Carey

There are 50 states plus US territories and they all have different rules. Even within states, different counties have different rules and procedures. About half the states don't even have tax liens.

Therefore the generalized information propagated is virtually useless, because it talks in generalities that don't really apply to any state. The individual state statue is the gospel on where to start in a specific state. But even then you have to be cautious, because the law will say the tax authority "may" do something that in reality they never do.

I say that tax foreclosure investing is the most hazardous and dangerous way to invest on real estate. Lots of people have invested and lost big time. Be careful and know what you are doing before taking the plunge.

See this reply in the discussion

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Vitali Korobov
Investor · Waldorf, MD · Member since 2016 · 13 posts · 2 votes
9y
Back to the original question: How much do they charge for what they call their "Ultimate Research Tool" (URT). I called the U.S. Tax Lien Association or whatever they call themselves and ask that question. They told be that they cannot disclose to me this information unless I pay them $1500 for the Home Study Course first. I thought that was weird! It's like going to a car dealer and asking how much some add-on option costs and they tell that you have to buy the car FIRST, and then and only then they will tell you the cost of that add-on. Sounds like a scam. Does anyone know how much this URT is?
2 Reply
Hugh NelsonPro Member
Investor · Ashburn, VA · Member since 2013 · 21 posts · 7 votes
9y
I bought the home study course, and URT is definitely NOT included. I don't think you can buy it independent of signing up for their mentorship program. That's $30K. I got my $1500 back, and I recommend you go with your gut impression on this one...
0 Reply
Eric B.
Contractor · Cleveland, OH · Member since 2013 · 90 posts · 14 votes
9y
@Dennis Weber You made a great point, and sorry I took so long to respond. The answer to your question is I took a few months off from actually buying liens in order to get mentored and learn how to do research better in order to avoid buying the low-quality liens I bought last time.
So now I have bought three liens so far, and they are going at 18%. Right now I'm buying a lien a month, and my goal for 2018 is to up that to two or three a month.
Meanwhile, I'm keeping an eye on deed auctions, but I'll need to get a financial partner before I actually bid on some of those deeds because the good ones are outside of my price range.
But most importantly, I am getting the hang of this research and being care to steer clear of junk liens.
1 Reply
Vitali Korobov
Investor · Waldorf, MD · Member since 2016 · 13 posts · 2 votes
9y
@Hugh Nelson. Yeah, I bought that course and had to send it back as well. They could not even get correctly which state or county is deed, lien or hybrid. You open their State Guide and see all counties shown having the same rate on their lien certificates. Save your money, stay away from these two "gurus", Higgins and Martinez. What a joke!
0 Reply
Shania Narcisse
Phoenix, AZ · Member since 2016 · 10 posts · 2 votes
8y
Originally posted by @Miles C Roth:

I have been buying tax certificates with great success for several years. The problem is it's slow, slow, slow, and different in every state. Make sure your course focuses on the geographical areas you are interested in!!!
I didn't use a course when I got started, just read the information available through the counties and read the actual state statutes. Looking back to when I started, maybe I could have used a little more guidance, but I have no complaints about the way it has worked out. I have cruised some of the websites foir companies where the classes are offered, and my question is always the same, if you're so good at the investing, why are you teaching it to someone else?
Looking to partner with an investor who wants to get into this.
0 Reply
Shania Narcisse
Phoenix, AZ · Member since 2016 · 10 posts · 2 votes
8y
Hey Mike, my wife and I are in Phoenix, AZ and have paid the $1500 for the USTLA program and are wanting to invest in this for the long haul and really make it work for us. If there is any knowledge you can send our way, it would be greatly appreciated. We are definitely into going about this in any way that is safe for all parties involved and of course, to make enough money to hopefully build our dream home. Let me know if you are interested.
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Eric B.
Contractor · Cleveland, OH · Member since 2013 · 90 posts · 14 votes
8y
The Ultimate Research Tool (URT) is no longer sold by itself, but as part of the mentoring programs. Truthfully, you don't need it to succeed. And even if you have it, you still need to research the individual counties' rules before investigating in liens and deeds. Once I gained access to the URT, though, I stopped mailing to individual counties. (I had mailed to 70 counties, heard back form about 80% of them.)
Counties want to help you as much as they can because they need investors to buy these liens and deeds so they can get these properties back on the tax roll. USTLA is great because they provide all the information and resources and support you need to get started and get moving.
I've been buying a minimum of one lien a month for quite some time, and one of my goals for 2018 is to buy my first deed. But I may need to find a money partner.
If you need help finding information or resources, I am swimming in them, so let me know!
1 Reply
Hector Alvarez
Investor · Austin, TX · Member since 2019 · 4 posts · 2 votes
6y
I have attended the free seminar, watched the 7-day training videos, and purchased the tax lien bible audio program along with the 10 mistake to avoid audio program. I'm attending live auctions with a neighbor that has done this for years to get acquainted. I agree with those that say that it all depends on your level of commitment. No program out there guarantees that you will make money. You learn and then it's up to you to do the work and make a decision.
Most of the posts I have read in this thread show a concern about the difficulty to acquire properties. While it is possible to get properties for cents on the dollar with tax deeds sales, the main idea of tax lien certificate investing is to secure a higher rate of return guaranteed by law. Most of Bigger Pockets audience are flippers and people that want to make a quick buck on deals. It is true, tax lien/deed investing may take some time, but it is more of a passive investment than an active one. 15%, 20%, 25% for passive income is not bad at all if you know how money really works. And I'm not comparing to what banks pay you; I'm comparing to what most real estate passive investments pay you.
I plan to use this strategy to purchase properties with other people's money, then wholesale them for 50% to 70% of ARV, repeat the process with my own money, and then purchase a ton of tax lien certificates to secure the "passive income" whether or not I get the property. Remember that our goal is financial freedom, not more work. At least that's what I want.
Cheers!
1 Reply
Hector Alvarez
Investor · Austin, TX · Member since 2019 · 4 posts · 2 votes
6y
TaxSaleLists.com seems to be well worth the $29/month investment since some counties may charge you that for sending you one list. Plus they have training included. The rest of the work is up to you to put the effort, but getting those lists in Excel format is a super time saver.
I also wanted to point out that for those of us that have experience flipping and analyzing deals, we have an advantage as it regards to the skills needed to invest in tax liens. Tax lien certificate investing is a much safer type of investment because we are getting the properties for so much less than buying from a wholesaler or finding off-market properties, let alone from MLS. "Price solves all issues".
1 Reply
Gina Rogers
Investor · Friendship, MD · Member since 2012 · 1 post · 1 vote
6y
Well said Hector. My strategy aligns with yours. I have purchased TLCs for interest rates, flipping and rehabbed for rentals in Maryland.
1 Reply
Alex G.
Eastern Mass & Central Maine · Member since 2009 · 252 posts · 135 votes
6y
Investing in tax lien certificates is akin to being a mortgage lender. You'd have to be able to correctly estimate both the quality of collateral and a mortgagor's ability to repay the mortgage. What makes you think you can do this?
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