Specialist · Nashville, TN · Member since 2014 · 18 posts · 5 votes
12y
@Jatin Shah welcome to BP. I am also a newbie. I appraise real estate as a career and am actively trying to invest.
I have also been going to tax lien sales for several years, observing. I have a pretty good idea what they go for. I usta go to the ones in Davidson County and record the opening and closing bid and measure the sales price as a percentage of the tax assessment.
Some of the junkier/average stuff properties typically sold for 15-25% of assessment. Where some nice properties in nice neighborhoods sale for 45-55% of assessed value.
There are some issues. Most of the properties never make it to the sale. I think investors send these folks mail and buy them out before they get there or the owners/lien holders may pay up before the sale.
The same people always buy these things. I have a good friend who is one of them. He says that they end up buying them back 95% of the time. But the time frame can be extended past the 365 days and therefore lowers your return. My friend is pretty big time and I think he parks his money in this way so he can get some kind of return.
Newbies usually don't have the cash to park in something that can generate a low return like this. Since the recession these properties have been getting bid up into the high 20's all the way to the 100's. So...