2017 Pinal County Arizona Tax Lien Auction Results

2017 Pinal County Arizona Tax Lien Auction Results

Specialist · Phoenix, AZ · Member since 2011 · 698 posts · 629 votes

The 2017 online tax lien auction for Pinal county in northern AZ ended 2 weeks ago and here are some unofficial results. Results can change if investors do not make their final payments for their lien purchases.

Average winning interest rates inched slightly higher compared to the last two years, and the number of winning investors grew to 81 from 68 the previous year.


I eliminated the "Struck to County" liens which are the liens nobody bid on and are now held by the county. There were 5,409 liens that were struck to the county. A total of $ 2,731,090.77 in liens not sold.

Number of liens sold to investors:

2017 - 2,505
2016 – 2,301
2015 - 2,713
2014 - 4,931

2013 - 4,340

Total dollar of liens sold:

2017 - $2,943,103.63
2016 - $2,549,429.59
2015 - $2,620,894.70
2014 - $6,831,424.55
2013 - $6,791,144.22

Average rate of return overall:

2017 – 5.84% (10.73% if you include the Struck to County which all get 16%)
2016 - 5.33% (10.74% if you include the Struck to County which all get 16%)
2015 - 4.25% (9.62% if you include the Struck to County which all get 16%)
2014 - 8.38% (11.14% if you include the Struck to County which all get 16%)
2013 - 9.86%

Number of Investors who won liens:

2017 - 81
2016 - 68
2015 - 64
2014 - 99
2013 - 199

Total Number of bids for all liens:

2017 – 11,220
2016 - 11,325
2015 - 15,166
2014 - 20,802
2013 - 48,418

You bid down the interest rate in 1% increments from 16% down to 0%.
Rate that had the most number of bids overall:

2017 – 5% 2,584 bids
2016 - 6% 1,601 bids
2015 - 4% 3,282 bids
2014 - 5% 5,543 bids
2013 - 7% 20,191 bids

Most bids per lien/parcel:

2017 – One lien had 21 bids
2016 - Two liens had 17 bids
2015 - Two liens had 23 bids
2014 - Four liens had 24 bids
2013 - Two liens each had 179 bids

Results by Property Use Type minus the Struck to County (click on image to make larger):

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Investor · Waterford, CT · Member since 2016 · 85 posts · 21 votes
9y

Wow!!!! This is EXCELLENT!!! This is super easy to read great job @Jerry K. What stands out to me is where in 2013 two liens had 179 bids and in 2017 only one had 21...wonder what caused the declining interest in tax lien investing?

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  • Investor · Waterford, CT · Member since 2016 · 85 posts · 21 votes
    9y

    Wow!!!! This is EXCELLENT!!! This is super easy to read great job @Jerry K. What stands out to me is where in 2013 two liens had 179 bids and in 2017 only one had 21...wonder what caused the declining interest in tax lien investing?

  • Specialist · Phoenix, AZ · Member since 2011 · 698 posts · 629 votes
    9y

    @Bernard Braithwaite Thanks for the nice comment. I'd have to go back and check, but I think 2013 was the last year Pinal may have allowed an investor to have multiple accounts to bid. If you look at my other posts on Yavapai and Coconino counties you'll see an even larger number of bids in 2013.

    The institutions used to have tens of thousands of accounts they could bid. They could only bid them all at one rate per lien so you could see a lien with 20,000 bids at 6% or whatever rate they chose.

    The only advantage having all those accounts offered was that if they bid that many times and it also turned out to be the lowest bid, then the software would randomly pick a winner from all the bids at that rate. So if I had one account that bid 6% and a bank had 20,000 accounts at 6% and it was the lowest rate, then the bank had 20,000 chances to be picked versus my one chance. Many Arizona counties eliminated multiple account bidding starting with the 2014 auctions.

  • Real Estate Agent · Gilbert, AZ · Member since 2016 · 220 posts · 122 votes
    9y
    5 to 6 percent seems incredibly low for all the hassle of researching and bidding. Wouldn't a private money loan be a better way to get interest with little work? Maybe I'm missing something.
  • Specialist · Phoenix, AZ · Member since 2011 · 698 posts · 629 votes
    9y

    @Justin Owens Many investors who look at tax lien investing end up doing private loans. Don't blame them. I got involved with tax liens in the 1980's when there was less competition and rates received were higher. 

    I'm getting set in my ways (translation=old & cranky) so to start learning the private note business would take up way more time for me rather than using my methods for tax liens. This is just a small part of my investment allocation so I'm fine with what I do and the returns I get. 

    I do think if a person was just starting and wanted to choose either tax lien investing or writing notes - probably notes would be easier/faster to learn and in today's market, it would provide a higher return overall.

  • Wholesaler · Lehi, UT · Member since 2015 · 333 posts · 144 votes
    9y

    @Bernard Braithwaite For the two liens that were 2013 they are ready to go to foreclosure because they are past the three year redemption period.  That could be the reason why so many bids on them.  For the newer liens, because it is bid down on the percentage of interest, and there is a three year redemption period, if you take much less to be the winning bidder you may hang on to the property for only a year at a lower interest rate.  If you can hit the over the counter listing of what did not sell, there will be a full 16% rate no matter the year.  Since most of the sales last for three days, then they have their clean up sale, it will leave little to choose from if you are looking for the better properties.  Nevertheless, if you get to the over the counter listing the first week it comes out you may find a couple you really like.  Pinal and Maricopa are getting much more competitive these days.  It used to be where there were 15K liens left over that no one purchased.  Much more than 5K.  It is still worth it for most because even 5% is more than most people make with their bank.  If you have a CD it is hard to realize unless you get the property.  Thing is, you can't get the property without going through the auction first.   

  • Specialist · Phoenix, AZ · Member since 2011 · 698 posts · 629 votes
    9y

    @Josh Carr Sorry if my stats are confusing - they are the results for that particular year's auction.  In other words, the 2013 stats are based on the results from the auction in 2013. It's not 2013 liens that were sold in 2017.

    I have results for each year going back that far. In the 2013 auction there were two liens sold that each had 179 bids. The most bids any lien had in 2017 was 21 bids.

  • Wholesaler · Lehi, UT · Member since 2015 · 333 posts · 144 votes
    9y

    @Jerry K. Thanks for that!

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