How to buy tax lien cert

Question

How do I buy a tax lien certificate?  How risky are they? What do I look for when picking one to invest in?

Richard D. · Answer

@Daniella Ortiz I hope you are looking outside of Texas. Texas is a tax deed state, and doesn't sell tax liens to investors. The taxing authorities instead foreclose on properties and sell them at public auction.

More Info:

Linebarger law firm

Mary B. · Answer

@Daniella Ortiz You're in a terrific state to invest in them. here's a link that might assist you. http://www.biggerpockets.com/renewsblog/2013/02/11...

Kudos,

Mary

Jeremy Shepherd · Answer

I just went to a tax cert. sale in my county in WV. It was everything from houses, lots, acreage, to portions of coal rights. This can be profitable if you know what to buy and how to do title searches or attorney's fees add up quickly. Here in WV I have to do the title search, send each person a certified letter ,then they have 18 months to pay the back taxes plus my investment and interest. You also have to be prepared to take possession of the property if it goes unpaid. At the sale I was at nothing sold at auction for more than $10, but most will be reclaimed. Laws and figures will be different in Texas. I go to the state auditors page to see what will be for sale. As for what to buy, I research what is going to be auctioned. Also do not make a mistake on the title search and paperwork or the whole deal will be void.