Investing in Property Tax Liens

Investing in Property Tax Liens

Parsippany, NJ · Member since 2016 · 8 posts · 1 vote

Is there any one that has experience and / or specializes in purchasing tax liens? I purchase properties from sherrif sales that I fix and flip. However, I've noticed once or twice a year, there's a tax lien sale and I've been tempted to bid on some tax liens. It sounds like there is a lot more risk involved. Would love the community's insight on tax lien sales - are they profitable? what due diligence should be done? how much interest rates can be charged? how long does it take for the lien to be paid off? Looking forward to hearing back. Thanks!

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Rental Property Investor · Chicago, IL · Member since 2016 · 318 posts · 307 votes
8y

@Account Closed

a) essentially make sure the tax lien is for a property worth $, without any easement issues.

3) Various by State. IL is 18% ever 6 months Max or 36% annually. 24% for OTC.

4) redemption period vary by state. Can be up to 3 years.

my 2 cents

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  • Rental Property Investor · Chicago, IL · Member since 2016 · 318 posts · 307 votes
    8y

    @Account Closed

    a) essentially make sure the tax lien is for a property worth $, without any easement issues.

    3) Various by State. IL is 18% ever 6 months Max or 36% annually. 24% for OTC.

    4) redemption period vary by state. Can be up to 3 years.

    my 2 cents

  • Parsippany, NJ · Member since 2016 · 8 posts · 1 vote
    8y

    @Ibn Abney This was really helpful information - thanks for replying!

  • Ned CareyPro Member
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    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    8y

    @Account Closed yes tax liens can be profitable. I basically do tax liens investing full time. You are right is can be risky. Just like any type of real estate it is very risky but your risk decreases as your knowledge increases. 

    Keep in mind that they are sold at auctions and can be very competitive. You need to know the local laws and how they affect your returns, You need to know exactly what you are bidding on. 

    One of the early podcasts was about tax liens specifically in NJ by Ankit Duggal 356 I believe.

  • Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
    8y
    Moe you should Google and pick up Michael Pellegrino's book on investing in tax liens in New Jersey. He's one of the top tax lien attorneys here in New Jersey and the book has a lot of great information.
  • Parsippany, NJ · Member since 2016 · 8 posts · 1 vote
    8y
    Thank you for the valuable insight. I'll look into Ankit's podcast!

    Originally posted by @Ned Carey:

    @Account Closed yes tax liens can be profitable. I basically do tax liens investing full time. You are right is can be risky. Just like any type of real estate it is very risky but your risk decreases as your knowledge increases. 

    Keep in mind that they are sold at auctions and can be very competitive. You need to know the local laws and how they affect your returns, You need to know exactly what you are bidding on. 

    One of the early podcasts was about tax liens specifically in NJ by Ankit Duggal 356 I believe.

  • Parsippany, NJ · Member since 2016 · 8 posts · 1 vote
    8y
    Ibrahim, thanks for the reference. I'll check out his book. It's great that he's based in NJ so it's relevant information.

    Originally posted by @Ibrahim Hughes:
    Moe you should Google and pick up Michael Pellegrino's book on investing in tax liens in New Jersey. He's one of the top tax lien attorneys here in New Jersey and the book has a lot of great information.
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