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Tax Liens & Mortgage Notes

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Karl Dunlap
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Tax Lien and Mortgage note investing

Karl Dunlap
Posted Mar 16 2024, 09:31

Hello for a beginner investor, which type of investment would you recommend, tax liens or mortgage note investing. Also, I also see a lot of online courses on both topics which are expensive. Could someone share where I should start.

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Nicholas L.
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Nicholas L.
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Replied Mar 16 2024, 10:22

Neither - these are not beginner strategies

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Chris Seveney
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Chris Seveney
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Replied Mar 16 2024, 11:07
Quote from @Karl Dunlap:

Hello for a beginner investor, which type of investment would you recommend, tax liens or mortgage note investing. Also, I also see a lot of online courses on both topics which are expensive. Could someone share where I should start.

Tax liens are not as sophisticated as notes but they are not easy either. Also depends how much $ do you have?

What do you consider an expensive course?

Which ones have you been looking at?

did you look on BP for what is recommended? 

You could learn how to do this basically for free on youtube and BP

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Replied Mar 16 2024, 11:14
Quote from @Karl Dunlap:

Hello for a beginner investor, which type of investment would you recommend, tax liens or mortgage note investing. Also, I also see a lot of online courses on both topics which are expensive. Could someone share where I should start.


 if you think about it, it's different product right,tax liens are basically investing at distressed property/people while mortgage note is basically investing at flips and also rehab property. What's your risk tolerance, I bet tax lien is having way higher risk than mortgage note. At least if I want to outsource the process , I can invest indirectly to mortgage note fund. But for tax lien afaik it has to be done directly.

Also I think tax lien should be done by professional or specialist in real estate due to unknown risk and regulation involved. 

In term of reward, I know the reward of mortgage note, but for tax lien it's kind like semi gambling.

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Karl Dunlap
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Karl Dunlap
Replied Mar 16 2024, 13:31

Thanks for your response Nicolas. What strategy would you recommend for a beginner?

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Karl Dunlap
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Karl Dunlap
Replied Mar 16 2024, 13:31

Thanks for your response Nicolas. What strategy would you recommend for a beginner?

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Karl Dunlap
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Karl Dunlap
Replied Mar 16 2024, 16:42

Hello. Thanks for your insight. I have looked at the USTLA course and Tax lien code.

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Nicholas L.
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Nicholas L.
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Replied Mar 16 2024, 18:29

@Karl Dunlap

house hack, live-in flip, or standard long term rental with minor cosmetics or value add

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Don Konipol
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Don Konipol
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Replied Mar 18 2024, 06:53
Quote from @Karl Dunlap:

Thanks for your response Nicolas. What strategy would you recommend for a beginner?

Totally depends on goals, time commitment, and funds available for investment.  One size DOES NOT fit all. 

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Nicholas L.
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Nicholas L.
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Replied Mar 18 2024, 07:19

@Don Konipol

can we agree that tax liens and notes are BOTH not beginner strategies though??

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Jay Hinrichs#4 All Forums Contributor
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Jay Hinrichs#4 All Forums Contributor
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Replied Mar 18 2024, 07:23
Quote from @Nicholas L.:

@Don Konipol

can we agree that tax liens and notes are BOTH not beginner strategies though??

Tax liens I agree on .. but notes through a very experienced vetted Broker who does it for a living is probably one of the safer investments and easiest to do.  AGAIN through an EXPERIENCED Broker and fully vetted not beginners or one of deals or trying to buy notes on your own.

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Kai Kopsch
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Kai Kopsch
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Replied Mar 27 2024, 10:58

Hey there, fellow real estate enthusiast! Those online classes about tax liens and mortgage note investing they're about as useful as a chocolate teapot! You don't need to waste your hard-earned cash on those when you've got BiggerPockets for free. 

Tax liens and mortgage note investing might sound fancy and exciting, but they're not exactly the best choices for a newbie investor like yourself. You're better off starting with something more grounded, like securing funds and getting a few transactions under your belt. Once you've got some experience, you can always dive into those niche strategies later.

Kai Kopsch Realty One Group Select Logo

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Replied Mar 28 2024, 04:08

Given our Decade Plus of Being a note buyer, we would agree with @Kai Kopsch

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