Tax Lien Buyers Club, Don't Do It!!!

27 Replies

First of all sure, maybe you did it and had good time, buttt from what I've read all over the internet its basically crap. Sure the info and videos were good. However they don't tell you the full story.

I was told, like everyone else, that the properties were "screened" ok... sure, long story short my lady who works at Tax Lien Buyers club, pressured me into buying them, saying oh, "these are the last ones, so I need you to hurry and sign them." So I called her and said well I can't even find the addresses. I had to do my own digging and found out after I bought the liens they were actually two lots that are assessed at $2800. Btw I Paid $750 on two of these. Great....(I know it was dumb to just trust, but I guess since thats what the company does is say OH HEY TRUST ME but ultimately its on you...).

I was told that i would receive the liens by the county in the mail in a matter of 2-4 weeks... NOPE! 

Thats when things started feeling scam-ish... 

So, I lost contact over  span of 6 months. I would email but no reply. I literally had to find her on FB and message her, which it was a very fast response. My first message being "HI _____!" (didn't want to give her the tip off of, "oh hey btw how are my liens going?")

I felt a sense of, "oh we sold him these two lots... thats his problem now. Mission accomplished." So three days ago

Anyways I asked her the status of my liens and told her idk what happened we just lost contact. She told me to schedule an appointment with her assistant... cool did. I had to wait 3 days to schedule a phone call with her assistant in which 30 mins prior her assistant emailed me and said, "oh can't make it sorry heres a number to call to get your liens" (the county office)

So I call, ... voicemail... ok no ones fault. It's just upsetting that I waited 3 days for a phone call and got a phone number that went to voicemail. So I message my original lady back and tell her basically I got blown off(respectfully). She says she's sorry and contacts the assistant and boom phone call within a couple of hours. 

She explains to me that Basically ill have to call the country and PURCHASE the liens for anywhere from $60-1000. If i don't Ill lose my "investment" put in... So basically, I'm in this deal for $750 each, and if i want to recoup my money ill have to buy the papers each from the county. Making each one come to $810-1750. for a lot assessed at $2800... Buttt then Ill get stuck with the property most likely. Possibly paying taxes on 2 lots for a long while...

This is just MY STORY, IF IT WORKED FOR YOU AWESOME.

Im mostly upset AT MYSELF for getting pushed around in this the way I did.

ANY ADVICE? Comments? Questions?

Sorry to hear of your experience.  I have read similar stories here about this group and others.  The fact is tax lien investing is much tougher and riskier than the pitches make it sound. 

I am glad I read this before I was about to delay my sons tuition for this. The Success Path didn't feel good I mean don't get me wrong the seminar gave up some good information but by me being experienced in real estate some things they explained just weren't true and I can see how you lost your money because they do not explain the process clearly that's why I didn't invest right away I am suppose to tomorrow but finding your message brought clearly to me what I had felt sitting in that seminar. What really got me was how they rush you the only thing they cared about was getting people to spend their money. But Jonathan you should have asked yourself one question which has been bothering me since I left why would you invest, spend your money in a tax lien club to later spend more money with them. So what I am saying is why in the heck would I pay someone just to have a privilege to spend my money with them again, it's like paying to get in a supermarket to buy groceries that's is crazy. I attend a seminar here in Chicago this past week on June 3 for Success Path. This is a shame and I think we need to do something about it to save others from getting beat out. By tv celebs being attached making people feel more comfortable and actually getting lead astray I think we should make them accountable.

My partner and i just lost all our investments with them they promised to do all the work and that we would collect the 18+% percent interest rate on our money basically all my certificates expired and my money is considered a "DONATION" WTF!!!! I called several times and they assured me the interest was accumulating not to worry. They basically dump the bad stuff on you that no one wants empty lots and you are stuck for years with money not moving. You can just buy the stuff on your own ours were stuck in Port Charlotte county in FL and doing everything myself through lienhub.com.....and i did my research online prior but found no warning if i had seen anything i would've stopped. I hope this stops someone from making a big investment mistake i will start posting everywhere.

Jonathan,

Thank you for posting this! You are doing an incredible service to others.

When I googled “Tax Lien Buyers Club” your post was the second result after their own website - the beauty of the internet is that Tax Lien Buyers Club can’t control the search results, as it is objective.

I have never heard about Tax Lien Certificates before yesterday morning. I attended Hillary Furr’s Seminar about Rules of Renovation and they brought in a speaker called Chris Peterson to talk about Tax Lien Buyers Club and to sell membership to their website for 1600$+

Although the sales pitch was incredibly convincing, I obviously went online to read what users are saying about Tax Lien Buyers Club.

I am very grateful to read about your experience and some of the other commenters. I will obviously stay away from this company and from Hillary Furr’s company that endorsed Tax Lien Buyers Club. 

I can tell you as a former Employee.  I cannot recommend this to anybody.  Seminar companies in general are not a good idea.  It is NEVER as easy as they say it is.  

At the outset of my investing career and education I went to a seminar called "The Flipping Formula" that came through Nashville back in Dec of 2015. I ended up buying their one year education/membership package thing. Definitely learned on the back end that it was just a an up-sell machine. And even after going through their video training (which was not worth the $1000 I spent btw, I could have found all the same information for free on here or a number of different places) it seemed really fishy/scammy to me. Fortunately I went with my gut in holding off on actually buying anything from them. 

But I can definitely empathize with you @Jonathan Hammann . I will say their salesman knew what he was doing, and they almost got me. But they definitely use high pressure sales tactics to get you to open your wallet. And, in my experience, it seemed they target (dare I say "prey" on) people who are brand new/uneducated about real estate and are still in the "dreaming" phase of a better life.

All that to say, thank you for posting this. I too also saw that this post actually came up BEFORE their actual website in my search results (maybe because I'm already a member of BP now...). But at least the silver lining here is that your post will most likely get to a good number of people searching for this and discourage a lot of them from falling into their funnel. Sorry to hear about your frustrating experience and having your money all tied up. That sucks. But at least this post has turned something good out of it!

And if nothing else, @Craig Cornforth 's comment speaks volumes. Good on you Craig!

Now, after all that, if anyone actually knows of LEGIT ways to get into Tax Lien investing I would love to hear more! I'm still super interested in all of that.

Thank you for sharing your experience in detail.  I’m of the mantra, ‘if something sounds too good to be true... it likely is.’   I also attended the Real Estate Elevated, as others did (but here in Silicon Valley).   There were maybe a handful of us that were engineers that went to ask questions after the pitch. The speaker who had been friendly to the other questioning attendees suddenly tensed up and became very defensive when asked questions regarding risk, statistics and etc.in regards to the quick sell process (run for the hills... it’s the data hungry engineers!). It’s clear they’re looking for gullible people who don’t ask real questions- I almost felt like they were preying upon these types of people- and they were the only ones who signed up (a good dozen).   The fact that ‘Tarek and Christina’s’ Real Estate Elevated is endorsing this program is quite alarming.   Sorry to those of you who have lost money with the Tax Lien Buyers club and thank you for saving others from making the same mistake.

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I signed up for TLBC in October, 2016 after being pitched for it at the Flipping Formula seminar.  I bought 3 vacant lot liens in November for a total of $2,500.  Prior to that I went through the education modules and took the test to be able to be certified and make the purchase.  I still had a lot of questions but it's a very complex topic and I knew I still had a lot to learn, and about real estate investing in general.  Along the way, I called TLBC and they also called me and I learned more over those conversations.  I came to understand that if I didn't force roll up before expiration I would lose the initial investment.  But the weren't set to expire until 2020 so I had time.  A few months ago out of the blue I got some checks in the mail from the counties where my liens were with the original amount of investment and the interest fees and penalties on top of that.  Success!  I didn't have to do anything.  I really felt that TLBC was behind me in helping me with my investment so my story is different than some of yours.  I'm definitely getting more education and investing in more liens, not only for passive income but as a vehicle to acquire properties as I've come a long way in my investment business and do actively buy and sell houses.  Good luck.

Thanks for these messages they are incredibly helpful. I blindly signed up with them this past weekend. After reading these messages I requested a refund just in time to meet their 3 business day %100 refund after sign up. 

Originally posted by @Andrew Ziebro :

I signed up for TLBC in October, 2016 after being pitched for it at the Flipping Formula seminar.  I bought 3 vacant lot liens in November for a total of $2,500.  Prior to that I went through the education modules and took the test to be able to be certified and make the purchase.  I still had a lot of questions but it's a very complex topic and I knew I still had a lot to learn, and about real estate investing in general.  Along the way, I called TLBC and they also called me and I learned more over those conversations.  I came to understand that if I didn't force roll up before expiration I would lose the initial investment.  But the weren't set to expire until 2020 so I had time.  A few months ago out of the blue I got some checks in the mail from the counties where my liens were with the original amount of investment and the interest fees and penalties on top of that.  Success!  I didn't have to do anything.  I really felt that TLBC was behind me in helping me with my investment so my story is different than some of yours.  I'm definitely getting more education and investing in more liens, not only for passive income but as a vehicle to acquire properties as I've come a long way in my investment business and do actively buy and sell houses.  Good luck.

you were very fortunate and lucky at the same time.. this is not the norm buying tax liens on dirt.

Hi Everyone,  I joined TLBC and they refused to refund me my money, however they offered me half back.  They called and offered a tax lien for 21k (redemption value) + fees, but the actual lien is 7800K.  They said it's in bankruptcy so it pays monthly $200/mo. and if the payor fails, I get redeemed with the 18% on the 7800k + the redemption value of 21k.  Is this a good deal?

@Pamela Smith Did they offer a full refund if not satisfied before you bought into the program? If they did and are not offering the full refund as promised I would be very skeptical of giving them more money. I am assuming they are selling you the lien at $21K and not giving it to you instead of a refund - please correct me if I am wrong. 

i don't know what state this lien is in, but I don't understand why "redemption value" is higher than the lien plus the interest. That alone sounds suspicious. 

Those things aside, there is no way to know if this is a good deal without knowing the value of the property. The property is collateral for your investment. You need to have an idea of the value.

Thanks for getting back to me Ned.  I looked up the value of the property and it's about $40k.  It's not in a neighborhood that I would invest in for a rental and the market doesn't look that great for a flip.  The lien is old, from 2009 and so they are selling it to me for the redemptive value of $20k and telling me that I can foreclose.  They say that the owners are paying $200/mo. on that lien.  I don't understand if that means that the lien is being devalued, or holds it's value.  I also don't know how long bankruptcy takes in Ohio.  I feel in my gut that they are trying to sell me an unwanted lien, tho they state that they are helping me get a property because the owner will not fulfill the bankruptcy.

I paid almost $1,000.00 to join the Tax Lien Buyers Club almost a year and a half ago.  Then I purchased from them $5000.00 worth of tax liens.  As of this date I have received absolutely no return on my investment.   Of the 10 tax liens they sold to me  only 2 have any potential of a return and then only if I spend more money to go through foreclosure on the property.  For me this Tax Lien Buyers Club has been a hard $6000.00 lesson learned:  Don't trust them to do"Due Diligence" on what they sell you.  They took my money and sold me a bunch of trash tax liens.   I would be happy to share the details of each certificate sold to me if you are interested.  Bottom line,  I regret loosing $ 6,000.00 on this scam.  

When my wife joined the TLBC she was told that they would purchase tax liens for her.  She was also told that they would do the "Due Diligence" to insure that those liens would provide the kind of returns expected from her investment.  Within a few weeks of sending them $5,000 she received 10 tax lien certificates from counties in Florida.  As of today's date (Sept 2018) she has had zero return from any of those liens.  

The whole experience has been one of frustration and disappointment.  The TLBC has given us no viable options for redeeming the certificates and 5 of them have expired (7 years is the expiration date on liens in Florida).  They were 6 years old when we bought them.  

In short, the process and expense of redeeming the certificate is not worth the value of the property.  The details of that are quite lengthy and varied for each certificate but I will explain one. 

Certificate #3

Located in Duvail County

Certificate No &  Year: #14230 - 2011

Certificate Cost: $2,400.00

Just Market Value of Property: $2,460.00 (from the Assessors office)

Amount of Back Taxes owed: $11,452.30 (it has been delinquent for at least 7 years)

Comment: REI suggestion to us for this property was to file for a tax deed before the lien expires in June of 2018.

Conclusion:  Obviously filing for the tax deed would cost more than the property is worth - $8,992.30 more (All liens must be satisfied when filing for the deed).  This certificate has now expired.

If you would like a similar summary of the other 9 certificates I would be happy to provide them. They are all very bad investments with multiple problems. Lesson learned?... make sure you do your own "Due Diligence" before purchasing certificates or deeds. Don't expect the TLBC or REI to do it for you. They simply unloaded a bunch of their junk certificates on us.

Pamela Smith,. All you suspeciions are well founded.  It is true that your investment continues to accrew interest throughout the bankruptcy process but the process can become so convoluted that in the end you will have to spend more time and money to secure a clear title than the property is worth.  

@John Larson I wonder if it is worth calling the state or federal Securities and Exchange commissions.  It is one thing to offer something for sale, and letting the buyer do their own due diligence. It is something very different to promise to do due diligence for you, then knowingly sell you overpriced crap. 

I don't understand how people like that can sleep at night. Thanks for adding your comments.

I bought in about 6 months ago. I received a few emails after that, trying to get me to commit to an order of tax liens. When I was ready, I emailed and they insisted on a phone meeting, where for an hour they tried to convince me that I needed a coach and that I should spend a bunch more money with them. I refused, and asked them to put together a package of liens for me to purchase. I didn't hear anything back . I have now sent 3 or 4 emails to my rep with no answers, and then sent a message to their main email address a week ago, and still haven't heard from anyone. Glad I found this thread! I'm going to cut my losses now.

I just returned from a Real Estate Elevated seminar and I could feel the snakes in the water the whole time I was there. The second session was the TLBC and it was nothing but the same thing. Over bloated promises. During the presentation I had answered many questions correctly and I am guessing that let them know that I knew what I was talking about ( Thanks to Bigger Pockets) Needless to say not one of the officials approached me and they made effort to stay clear when I was lurking to ask questions. This type of business behavior is shameful and a disgrace for those who are working hard and really trying to make things happen. 

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