tax lines questions

[Corey Demuth]

I am considering trying out buying tax liens or deeds to build up cash until I have enough to secure a rental or two, or buy a house to rehab.

First, if I want to attend an auction in person, where are the best auctions in the northeast? ie NY, NJ, CT, MA, PA ?

Second, is 10k enough for me to start investing in these? Or would I realistically need substantially more? How much do tax liens typically sell for?

Thanks!

[Joe Donohue]

Corey,
Where are you living? Because whichever state you choose you will need to be one the road a lot in that area.

What is your goal - interest or deed?

Of those states I have only been to NJ. NJ has a 18% bid down the interest system. Lien holders can bid down the interest to zero, then a premium is established. Also, there is a 2,4or 6% penalty. If you are going for deed in NJ, there are many legal steps you must go through to get the property. I recommend the book New Jersey Tax Liens by Peregrino (sp?).

NJ has several syndicates that attend auctions with big lists. My understanding is that Xspand dropped out, but other big players are still there. They will try to purchase any homestead property lien. Go to smaller auctions (in smaller counties) and you may get lucky in beating a local.

- $10k is plenty. Most of your small homestead liens will be 1,000-4,000. Vacant land liens will be much less. Remember to have at least 25% of your funds set aside for the various legal fees.

Best of luck and keep us updated on your progress.

~Joe
PTI Serivces, Inc.