Hello. I am new to this websites and have recently joined an investment club. I went to a seminar and got caught up in the moment. Before I knew it, I paid $1600 to join the Tax Lien Buyers Club. The speaker made it seem super easy and I bought in. After looking over the website and reading a lot of info on tax liens and deeds, I see it's not so easy. I have a lot to learn. Since I invested this money, I plan on learning as much as I can and following through with investing. If anyone has any helpful advice I would appreciate it. I live in a tax deed state, but would like to start off with tax liens.
Hello @Elizabeth Patrick and let me be the first to welcome you to Bigger Pockets. BP has tons of information on REI and also let's you network with other investors from around the world. You came to the right place and I wish you all the best.
Thank you! I look forward to networking and learning from others!
Hello and welcome to BP! One of the things you can do is go to ustaxlienassociation.com and learn from them. I have been thinking of doing that too when I medically recover. You see, I am 59 years old and I am looking for something that is flexible to do since I had a brain aneurism and a stroke. They have been doing this for about 20 years and can teach you a bunch. I got 7 CD's from them and I listened to them about 7 times. All counties do it a little different and you have to do your research. Of course, they are trying to enroll you in their class but do that very casually. There is another group that tries to sell you more stuff that has made a bunch of money coming to Houston and they can be found at taxesliencertificateschool.com. Good luck to you!
@Elizabeth Patrick we have a number of experts here on tax liens and deeds. we're all willing to help.
The rules are quite state specific. So when question some up just ask but please mention the state. I can tell you all you want to know about MD tax lien law but couldn't give you a hint in PA for example.
@Elizabeth Patrick Welcome to BP. I have learned a lot from Joanne Musa. Try out this state guide to learn more - State Guide She also has some great information on youtube. So I would recommend her teaching. Also check out the county web site where you want to start investing. Probably known as the tax assessor or similar name. Some states have a lot of great information online like FL. You can easily bid on tax liens remotely there. After holding the tax lien for 2 years ( I think its 2 years), you can then request that it go to tax deed sale where you will then be paid. ) Other than that, what do you get for your Tax Lien Buyers club membership. With 1600 bucks invested, what did you get for your money? Best of luck
Thank you all for the warm welcome! I'm thinking about looking into South Carolina because it's not too far away. They also have less wait time. I think I read it's 12-16 months. Does anyone have any info for SC? Best place to look for tax liens?
As far as the money I paid for the club, I have access for 1 year to a website that puts everything into one place as far as auctions, state info and laws. I also have access to their advisors by phone. There are some training videos as well. They have a forum on the website, but it is strictly monitored by their admin and I don't see much recent posting on it. In order to be eligible for the guarantee, I'm supposed to acquire 10 tax liens and/or deeds within a 90 day period as well as going through all the training info. I'm trying to gain some knowledge before I jump in. I don't want to end up with garbage or waste land that is valueless. I realize there is risk in everything, but I would like to assume the least risk possible by educating myself first.
@Elizabeth Patrick Definitely learn the laws, and more importanty, the implications of those laws in your state. And stick to a state where you really know this. One thing that makes me suspect of these guys is I see them "reselling/brokering" Over The Counter liens. In Florida if a lien is available over the counter, (at 18% interest verses the typical 2-5% most get bid down to) that means that the dozens, or hundreds, of tax lien buyers at the lien auction All decided not to bid on these, for a reason......unbuildable lots, swamp land, useless ROW's, etc.
A quick example of the "implications" of the tax lien law here....the general understanding is that you buy a tax lien, and if the owner doesn't redeem within 2 years, you can send it to a tax deed auction, where you will be paid from the auction proceeds. But, to send it to the auction, you must first pay off All the other outstanding tax liens on the property. So, if you paid $1,000 for a lien, you may have to pay off 4-6 years worth of other liens to send it to an auction, and this may end up being more than the property is worth.
Sounds sketchy that you have to buy 10 in 90 days.
In SC each county only holds tax auctions/sales 1x per year. As far as I know all are in October/November.
Thanks for the info @Wayne Brooks and @Ron T. I feel like the club I invested into is one that tries to make money from its investors by pushing for things to be done quickly. Usually I don't get sucked into those kinds of things,but occasionally I do. I figure now that I've made this choice, I might as well learn something and follow thru with tax lien investment, but on my time. Although the guarantee is only good for a limited time under those conditions, that doesn't mean I'll follow thru. I will use the website and videos and of course all of the great people here to learn as much as I can before I leap. I'm starting small and will see how it goes. I don't plan on getting rich quick, but will do so steadily. Lol.
Elizabeth - I would like to add my welcome to the BP group! One question that comes to mind is when you purchased the Tax Lien program, did they provide you a cancellation period? If you are having second thoughts about the purchase, you might contact them concerning your options.
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Houston Real Deal - Real Estate Investors of Houston is one you can find on the Meetup.com. There is a meeting held almost every month and there might be one tonight, but don't take my word for it. Please do check. I think if you search Houston Meetup and it should come up. It's at The Black Labrador at 6:30. @Charles Nguyen is the organizer.
@Wayne Brooks. Not posing as a random customer. Knowledge should be shared and needs to shared. Not everyone will always be happy with what you share. BP is for everyone to have input and there is a wealth of knowledge from the buyers club and also from large investment firms. Happy to share with everyone. Having purchased thousands of tax liens myself I feel like there can be merit in sharing.
@Ned Carey Do you have a foreclosure lawyer for Baltimore area that you recommend to people?
@Josh Carr Are you speaking about tax lien foreclosures or Mortgage foreclosures? Also the quantity would make a difference. Some attorneys don't want to bother with someone who only has one lien, some on the other hand are happy to get the business.
One attorney who does a lot tax lien work and also offers many other services to real estate investors is Anthony Onwuanibe. Easy to find with Google. Also Cohen and Foreman are excellent.
@Ned Carey - Speaking about tax lien foreclosures.
If there is a secret of tax sale profit, it is doing tax sale deals all year long, no need to wait for the regular sale - you know the one with all the competition - I use a system we call "Tax Sale Poaching" - related to direct mail and direct contact with owners in tax sales - a public service type of marketing.
I saw that you're interested in investing in tax liens in sc. In the counties near me, Greenville county and oconnee county, they do not offer the opportunity to invest in tax liens. They only do a tax sales auction one time a year. The homeowner has a year and a day to pay back the taxes. If they pay it back, you get the 3% a quarter on the amount of your winning bid on the property. If they don't then you will have to go through the process of getting a tax deed and then foreclosing on the owner of the property.
Like someone else said, Florida is a much easier state to do business with because everything is online and investor friendly.
I found a few books for 3.95$ on my kindle that were state specific treatises on tax lien investing. Very basic but informative.
And don't feel bad about getting duped into one of those tax lien clubs, I got duped into a 3 day seminar for 2000$ that ended up having bread crumbs of information and became more of an expensive advertisement that I paid to go see. All of that information I could have easily found on this site or through YouTube.
Good luck! I live in SC, so if I can be of any help, just let me know.
I invest in Tax Deed Auctions here in Florida but I DON'T buy at the auction. I contact the homeowners before the auction and make a deal with them to buy the house before they lose it to the auction. Then I wholesale it because of the deep discount price I can buy it for.
Hi, and welcome to BP. I am also new and look forward to networking and expanding my knowledge base of REI.
I am from SC too and know that the redemption period for my county (Lexington) is 12 months. So 1 year after you place a winning bid on a property, you then have the right to begin the process of obtaining a deed for said property. Also, Michael Nicholson is right when he says you earn 3% per quarter on your liens. So if the original owner of the property pays off their taxes in the third quarter, you will get 9% interest on your bid. However, the interest rates and redemption period may vary by county. Best of luck to you!
Creighton, does that mean that they pay the % on your winning bid or the % on what they originally owed? Say they owe 900.00 and your winning bid is 2000.00. Do they pay the quarterly fee on the 900 or 2000?
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