Investor · Miami, FL · Member since 2015 · 12 posts · 4 votes
Hello BP!!!
Does anybody have experience being a member of Tax Lien Investment Club. I was quite quick to join them in a "free real estate investment seminar" from Success Path, but after realizing that Succes Path is not what they promised, I started doubting Tax Lien Investment Club (after all they are working together).
In theory, they are a secondary market for tax liens that they purchase from large hedge funds. My worry now is that they would just sell the "trash".
I, too, am new to BP. Yes, I have some experience with The Tax Lien Buyers Club. I signed up back in October just like you. There is a lot of good and useful information on their web site, so I recommend reading it all. When you decide to purchase tax liens from them, do your research. Lucky for you they like doing business in Florida so you can drive the properties before making your purchase. I highly recommend you do that. Here is what my experience has been. I called them to purchase 10 tax liens just like they tell you at the seminar. When you call, you will get a salesman on the phone who will tell you that all of the properties have been researched and are investment quality. I think they tell you this so you just give them your money and don’t do any research for yourself. Always do your own research! Well, I signed on the bottom line and now I am in the process of transferring them into my name. If you would like to private message me, I will send you the list of properties that I have purchased. Let’s just say that I am not exactly thrilled by all of the property they sold me and hope they are redeemed, because I don’t think I will be wasting any more money to foreclose on them. This might be an expensive lesson in tax liens on my part, but I am learning more and more every day. I hope this helps.
what do you mean when you state "Could a "safe" certificate slip thru the cracks and not be bid on....sure, but the odds are extremely low....not a wise pool to fishing in"
Am I correct to assume when you refer to the not a wise pool, that those are properties with low to no resale value, those nobody will bid on at the tax deed sale and you end of with the property at a loss?
Can anyone answer? What happens with a property when the county is the certificate holder and no one bids tax deed sale. I assume the county places it in their residential division and attempts to sell it?
Question for everyone in this feed. What is your main goal when you purchase a certificate? What is your lowest interest rate bid? How many years do you hold it between the min and max time frame?
Are you buying for the annual interest earnings with safe return, no work, no holding cost, etc? Do you ultimately bid on the property at tax deed sale? Do you bid to buy then sell certs? Do you ever contact the owners in default?
@MarZia- If a county in Florida is the one that takes the property to the tax deed auction and no one bids on it then it goes to what is called the list of lands available where it will sit for another 3 years where an escheat date is set. (This is a date where the certificate becomes null and void.) If the county takes the property to the tax deed auction the county does not have to pay the other lien holders back at the time. They will pay them back if the property sells at the tax deed auction otherwise it will go to the list of lands. If the tax deed goes to the list of lands available and you are an investor of a tax lien on this specific property then you will be able to pay off the taxes at this time and take ownership to the property. Or, you could wait until the three years is almost up, all the while still accruing interest, and see if anyone else picks up the property redeeming your lien. I have seen tax liens redeem this way often.
Am I correct to assume when you refer to the not a wise pool, that those are properties with low to no resale value, those nobody will bid on at the tax deed sale and you end of with the property at a loss?
Yes, some properties could have no commercial value; swampland, un-buildable lots, odd shaped lots to small to do anything with, houses that need more in repair than the property would be worth when fixed up. In MD taxes continue to accrue and there are $1,000-3,000 assessed properties with upwards of $50K in taxes on them.
I don't bid in FL but I buy lien to foreclose on the properties.
@John- The debate was never about the interest rate. It was about the time frame for the 5% if it is carries over every year it is delinquent and you are still holding the lien. In talking with one of the Tax Collector's of Florida I was assured that the 5% carries over each year it is not paid. The life of a lien is 7 years in the state of Florida per the state statute. If the property owner does not pay the first year there will be a 5% interest rate for that year because the tax lien interest rate was bid down below 5 but above 0. The next year if the property owner still does not pay their taxes the interest will carry over for that year and for each year it is not paid until the 7th year has been reached when a tax lien will expire. Contact the Tax Collector of any county in Florida, they are very nice and willing to help.
@Josh Carr Again, it seems you can't read the statute you referenced. The 5%minimum is not for the first year, it's for the life of the certificate. If the bid rate is 1%, and redeemed after 4 years, you get 5% TOTAL interest, not 5% year 1, and 1% years 2-4.
Since each state, county, locale has different tax lien sale programs why not just educate yourself on the specific area you want to invest in ? Why use a club ? In my county there is a 3 year redemption so chasing tax liens isn't worth my time.
Tax Lien Buyers Club offers investors state and county listings at their fingertips. Saving endless hours searching for listings, rules and regulations of each state. An easy way of accessing all information needed for successful investing. Access to the auction calendar every month will create a great focus point. You will see when tax liens, tax deeds or redeemable deed auctions are taking place helping you with when and where you want to approach a particular county and state, depending on your investment strategy. Educational materials cover training and research for due diligence. The list goes on. The secondary market is an added bonus for those that want to start right away and/or don't have the time to get going, etc., etc.. Ease and convenience is worth it's weight in gold.
If I may add some clarity as well. Counties maintain a list of County-held certificates able to be purchased at 18%. The Lands Available for taxes are those properties that Counties have foreclosed upon county certificates whereby for the first 90 days any gov't agency can buy it then it is open up to the public. After two years it escheats. Since we're clarifying info.
@Josh Carr It appears you are somehow related to the Tax lien Buyers Club yet you have not disclosed that. What is your relationship with Tax Lien Buyers Club
We are a secondary market which provides tax liens for investors. We work with investors who wants to invest in tax liens via the Tax Lien Buyers Club, etc.
Do you have any ownership in the Tax Lien Buyers Club? Do you or your company receive any compensation from the tax lien buyers club? Do you receive compensation for working with investors who buy from the Tax Lien Buyers Club?
Bypass them all together, and just buy direct from the county, state, and feds. you will do yourself a favor. Do your homework, select your areas of choice, and pick and choose your properties yourself after doing site seen.
I'm new to BP and found this researching the Tax Lien Buyers Club.
I went to the seminar yesterday and signed up. What interests me is buying liens and flipping them. I have no immediate interest in getting involved with the foreclosure process and/or owning the property.
According to what was said at the seminar, the Club provides all - the "scrubbed clean" liens, lists to choose them from, even potential buyers (at a higher price but...that's whe it stops making sense....)
Another RED FLAG: none of the Owners or managing team of the firm are listed. Not one name.
In my research, I'm reading both positive and negative reviews.
They claim that if I invest in a lie , then the property is bought back,mi will get back my investment plus interest. "Guaranteed" with the interest rates higher than what banks, etc are offering, it is tempting.
If I can buy the lien, then flip it, I would make more.
Any and all feedback and advice would be appreciated ! Many thanks,
@Carole FiedlerI am sure that people have been successful using Tax Lien Buyers Club before. But as you may have learned from the previous posts in this thread and the other posts that come up on BP when you search "Tax Liens", is that you need to be familiar with the state and even county laws of the area you are purchasing Tax Liens in.
It is your money that is on the line and while it is great that companies "guarantee" buyers and quality it probably won't be worth your time or money to hold them to that unless you are investing large sums of money.
I'll re-iterate my and 90% of the other peoples position on using this company that you are better off doing your own research and buying directly from the county.
My intent is to use TLBC mostly to save me the time/energy of learning and dealing and researching the various counties. Also, for the support services - ie: having someone to call that can answer my questions, explain what I don't understand, etc.
For me, saving that time is worth the $997 I paid them IF THEY ARE LEGIT.
I've confirmed with the Boston Flipping guys that they are affiliated with TLBC so that's good.
I've also received several call backs from the club and they have been able to answer my questions. So, I'm feeling a bit better about them.
I am not intending to invest big bucks or even to end up with properties at this point. I would like, however, to have a vehicle where I can invest something and get better returns than in the bank. To start. I want to see how that goes, while I get a better understanding of how it all works.
Ultimately, I may want to go from Lien to deed, understanding that I would be responsible for back taxes and foreclosure costs too.
@Account ClosedI wish you luck and hope you keep us in formed on how your experience goes. I will still urge you to do the research on your for each county you invest in. Above in the thread is an example of the information provided by Tax Lien Buyers Club being factually incorrect and not understood by one of their associates. And I don't want you to be on the bad end of similar information.
@William StrongSo maybe a course can be given for each state depending on demand I guess. But a general idea and or fundamentals course wouldn't hurt either.
@Account ClosedI agree I've been looking and reading on here about tax liens for over a year and still feel like I don't know enough. If you are looking at investing in Florida there is a lot of information here on BP if you search tax liens you will find lots of threads, since florida has an online process and a statutory minimum of 5% it attracts a lot of investors. I can't name any of the Florida lien investors off the top of my head but if you skim probably 10-20 threads you will get the idea of who is investing in florida and knows what they are doing.
@Account Closed and anyone else interested in Florida tax lien/deed procedures. Just google up florida statutes Chapter 197.....tells you everything there is to know.
Gentlemen, you are all wonderful and William, I agree with much of what you've said. I have so much to read and learn! That's one reason I will start slowly and not in a big way. I want to take advantage of the $997 rate, hence the rush.
I like the idea of this because I understand the concept. I've been specializing in a secondary market for collateralized illiquid assets (life insurance policies) for more than 20 years. Before that I was a real estate broker in Manhattan. This is the first thing I've seen in years that excites me as a potential business to get involved in.
I agree I have a lot to learn and a lot of reading to do. It seems that this Club I joined can facilitate that by having it all in one place, providing support, tracking, dealing with regulations and paperwork, like that. In addition, I would still do my own due diligence on each property and follow it, yet with them doing their thing, I can take a more passive role. That's what I'd want. I'm passionate about my current, Life Settlement business and am not looking at giving that up. But I also like this tax lien option.
Again, many thanks. I'm open to any and all advice and input.
@Wayne BrooksThanks. I will definitely take that up. I still think a class or a course (podcast, webinar, etc) would be advantageous but I appreciate the effort of helping me getting off the ground.