Tax Lien Certificates

Tax Lien Certificates

Homeowner · Washington, DC · Member since 2014 · 30 posts · 3 votes

Hello Everyone!!!

Does anyone have experience in Tax Lien investing if so what are your thoughts? I am researching tax sale in the DC, PG County, and Southern MD areas

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San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
12y

I think Ned Carey here has experience in this niche. You may want to connect with him. Hope that helps!

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  • Real Estate Investor · San Joaquin County, CA · Member since 2012 · 27 posts · 8 votes
    12y

    Hi Whitney. I'm new to tax lien investing too, but haven't seriously looked in your area just yet. I like doing the due diligence that is required with tax liens, and putting some of my investment $ into shorter term liens.  However, the first two liens I bought didn't redeem, so we are getting ready to move to the foreclosure process with an attorney as per that particular county's specifications. It's been a huge learning process, and I've quickly learned that having knowledgeable team members is crucial even in this type of investing. But, I do enjoy it. I've seen some of the lists in your area, and they are huge, so I'm sure you'll find some investments to meet your criteria. Good luck and update us on your progress. :)

  • San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
    12y

    I think Ned Carey here has experience in this niche. You may want to connect with him. Hope that helps!

  • Real Estate Agent · Huntington Beach, CA · Member since 2014 · 23 posts · 7 votes
    12y

    Wow @Alex H., I remember a tax lien veteran saying that only 1-3% of his tax liens go to foreclosure but your first two are already in that process. That is something. I am studying tax liens myself as they seem appealing. Where is your area of focus?

  • Real Estate Investor · San Joaquin County, CA · Member since 2012 · 27 posts · 8 votes
    12y

    @Ryan Byrne, I'm sure it was dumb luck...currently my liens are in AZ and IN.  The remaining initial liens redeemed and I still have some out there waiting to be redeemed...will be shopping again soon. :)

  • Homeowner · Washington, DC · Member since 2014 · 30 posts · 3 votes
    12y

    @Alex H. Thats great Alex... What would you recommend for a solid team? In my area I also have to wait for a tax sale which they do yearly how its your area?

  • Specialist · Phoenix, AZ · Member since 2011 · 698 posts · 629 votes
    12y

    @Whitney Moore Congrats on getting started. The best thing to start with is learning the statues for liens/deeds in your area. Taking a local tax lien foreclosure attorney to breakfast is the best way to get knowlwedgeable about your target markets.

    The DC area is known to have some not so nice stories of mean tax lien investors. The Washington Post has several articles of bad apple investors. The rules in DC are about to be changed so keep your eyes open to the news.

    Join a local Real Estate Investment club and network with other investors. The helpful ones cansteer you in the righrt direction. Just know some will view you as competition so trust, but verify, what they say.

  • Homeowner · Washington, DC · Member since 2014 · 30 posts · 3 votes
    12y

    Thanks @Jerry K. 

  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    12y

    @Rachel H. thanks for the shout out.

    @Whitney Moore I have done a lot with tax liens in MD. It can be very competitive but with care it can also be very lucrative. 

    I will be speaking tomorrow in Columbia MD about tax liens

    http://beta.biggerpockets.com/forums/521-events-an...

    In PG and also Baltimore City you can buy leftover liens "over the counter" at face value. You may not have to wait until next years sale to get started.

    Originally posted by @Jerry K. 

    That is how I got started.

  • Investor · Baltimore, MD · Member since 2012 · 605 posts · 103 votes
    12y

    @Ned Carey - Do you think there are any worthwhile liens left in Baltimore City?

  • Real Estate Investor · San Joaquin County, CA · Member since 2012 · 27 posts · 8 votes
    12y
    Whitney Moore about my team members...I have an attorney in each county I've invested in that is familiar with real estate law (to help with foreclosures, etc...or to just answer my abundant questions) and I've buddied up with the county agency offering the liens. Those employees are usually very helpful if you catch them at the right time of the year, between sales. If I'm in town, I like to go to the office and talk to them in person. I've been buying liens online for counties that I am familiar with or that I can travel to when I'm out checking on my other investments... I live in northern CA and have been investing in the mid-west. Of course, the local title company is great to have answer questions. If I can't be somewhere in person to physically drive by potential investments as part of my due diligence, I hire a temporary assistant to help out. So far, I've had fairly good luck. But, I'll admit I've also purchased a couple duds, too. But that's how I learned a few things too. ????
  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    12y
    Originally posted by @Anil Samuel:

    @Ned Carey - Do you think there are any worthwhile liens left in Baltimore City?

     Anil,

    I suspect there are some but they will be tough to find. I just picked up a list of last years leftovers and it looks like there are some worth buying still from last years list.

  • Investor · Baltimore, MD · Member since 2012 · 605 posts · 103 votes
    12y

    @Ned Carey I guess after tomorrow's session I will take a look at last year's list!

  • Investor · College Park, MD · Member since 2014 · 79 posts · 28 votes
    12y

    @Ned Carey once the deed has been recorded in the city/county would the lien purchaser need anything else to put the property on the market?

  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    12y

    Once the deed is recorded it is your property. Yes  you can sell it. 

  • Orlando, FL · Member since 2014 · 6 posts · 1 vote
    12y

    Great information everyone thank you for being so giving. It looks like if the property does not redeem its best to hire a firm that specializes in servicing and noticing, Ned do you have a firm that does this for you or have you gained enough expertise to do this internally in your company? 

  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    12y

    @Joe Sivic  In MD and most areas the redemption of a tax liens is through the city or county.   To do the foreclosure you need an attorney who specializes in tax sale. Anthony Onwuanibe is one attorney who does this in MD.

    Legally you could do a foreclosure yourself but It is extremely complex and you would never get title insurance.

  • Ronald PerichPro Member
    Investor · Granite City, IL · Member since 2014 · 658 posts · 301 votes
    12y

    @Whitney Moore There was a podcast (referred to by @Ryan Byrne ) that was all about tax liens. Might want to spend an hour listening to it.

    http://www.biggerpockets.com/renewsblog/2014/02/06...

  • Orlando, FL · Member since 2014 · 6 posts · 1 vote
    12y

    Thank you, I completely agree with you and appreciate the Attorney suggestion. I am not a DIY kind of person and Pro Se is not a strategy I have an appetite for. I will focus on investing and happily pay A players to handle the details, that is the way that I have found works best in business. 

    DIY=FAIL in most cases when it comes to things like foreclosures, Dodd Frank compliance, etc. 

  • Investor · College Park, MD · Member since 2014 · 79 posts · 28 votes
    12y

    @Ned Carey I made it through the 13 & 14 lists. When I went to purchase off of the 13' list, I was directed to the "Real Estate" division of the city who would only allow me to request information on 3 properties and had to call me back within 10 days. Is this normal. thank you as always!

  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    12y

    Yes this is normal. It is a really stupid system. 

  • Palm Beach Gardens, FL · Member since 2015 · 10 posts · 4 votes
    11y

    @Ned Carey I'm trying to learn more about tax liens/certificates and came across some of your older posts from last year. Last June you stated that you were going to be speaking in Columbia, MD about tax liens. I'm in VA pretty close to you and was wondering if you regularly speak/teach about tax liens in the area, or if this was a one time deal? If so, will you be doing it again any time soon?

  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    11y

    @Edson Cortes I have spoken three times at local clubs since then.  For the most part the tax lien season in MD is  over so I doubt I would be speaking again soon but I am happy to speak at any club that is interested. 

    If you have specific questions just tag me in a post ans I will see it and respond. 

    There is a lot written here already about tax liens.

  • Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    11y

    @Alex H.

    You stated you are moving to the foreclosure process on a couple of your liens. What states?

    @Ned Carey

    what book would you recommend for a quick primer on tax liens? In Florida, we have tax lien certificates. If not paid, the properties go to public auction. It appears that in some states, the owner of the certificate can foreclose? I know it will vary from state to state.

  • Real Estate Investor · Decatur, AL · Member since 2015 · 16 posts · 6 votes
    11y

    Hello Whitney and welcome.

    I recently became involved in purchasing tax certificates in the State of Alabama.

    First suggestion visited your state department of revenue website were you will be provide with a wealth of information. Firstly, properties available for sell, auction dates, and links to your local state laws.

    This will then provide you with your states redemption periods and return on invest terms (aka annual percentage rate) for your state.

    Lastly, research your perspective properties and formula a game plan prior to your actual purchase.

    Good Luck!

  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    11y

    @John Thedford People have often recommended the book 16% solution. I have not read it.  The best place to learn specific rules to  your area is county website which usually have information. Or talk to a local tax sale attorney. I bought one breakfast and got an hours education for the cost of a meal. I am a client and we have been friends ever since. 

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