Success with Tax Liens?

Question

Anyone had success with investing in Tax Liens? Where did you buy them, how much, etc. I have heard of a few people getting their first property through tax liens (although, you probably just invested for the interest, not the property).

Bruce Lynn · Answer

@Ryan Stock   There's probably a Utah expert here who can give you guidance.  If not the first place I would start is with your local county tax assessor and/or appraisal district.  Go in person.  Ask them if they have an upcoming option or when the next one is.  Ask if they have a list of properties that will be in the auction.   Find online or maybe in their office a copy of the law regarding tax liens in Utah.  Read it about once a week for a couple of months.   Go to the next sale and watch and network.   Ask people why they bought this or that.   Why did they pay this or that.

John Underwood · Answer

@Ryan Stock, check other post on BP for more details. The short answer is yes I have had great success with buying Tax Liens. I have many houses that I got via Tax Deed that are the bulk of my rental portfolio.

It seems to be much more competitive where I am and for everyone I have talked to.  I still get a couple of properties every year and get interest on the ones I don't get.

Joe Donohue · Answer

My entire business is centered around Tax-Default property.  We invest in multiple states.  You can be very successful if you do the right research before the sale.  Knowing the area is paramount.  The less you know the area the more easily avoidable mistakes you will make. One thing you have to keep in mind is that these are Tax Deeds or deeds issued by the county.  They are not Warranty Deeds or "clean" deeds.  Properties over a certain value need a quiet title to sell at a reasonable price.  This requires additional time and money.  My advice is to always figure a quiet title cost into your bid amount.  The price can vary wildly.  -Narrow down an area to concentrate on.-Call the county to learn the process-"Backtest" prior sales vs. Market values. (Spend a great deal of time on this)-Attend at least a few sales before actually investing.-Talk to an attorneyHappy HuntingJoe D

Success with Tax Liens?

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