Which state is best to Invest in Tax liens?

11 Replies

I'm looking for a state to invest in tax liens. I currently invest in Tax Deeds in LA county but wanted to add tax lien investing in other states.

I'm new and hoping I can find a state/county that sells them more than once a year, with 16% or higher interest. This is my first time looking to invest out of state. Any other suggestions/tips are appreciated.

@David Petikyan

There is no “best” states. It depends what you’re looking for.. redemption interest or are you targeting reo. Also you should expect to do tons of due diligence prior to each sale, of which most property will redeem prior to the sale.

Your first step should be to speak with attorneys in the states you want to target. Ask what the redemption period is. Ask what the foreclosure process is. Ask how to get a clear marketable title, and typical costs associated with it. Ask about sale fees, how do you pay the sub taxes.

Find out what the county needs for registration.

Are the sales held live or in person.

In most states you will never earn the maximum interest rate, and if you do an experienced bidders are in the room you should consider that a red flag. Expect all bid down interest states to go at low rates, expect to pay premiums in premium states.

In FL just about every residential property gets bid to .25% by multiple bidders. Eventual winner will get the state min interest rate of 5% penal.

Not familiar with TX.

Good luck!

@Steven Brown I actually found exactly what I was looking for with further research last night. There’s a website that a lot of counties hold their tax lien sales. It’s realtaxlien.com it shows all the information you need to know, which are active, and can buy them directly from the site. It’s actually a lot simpler than most would expect.