Tax Lien vs Note Investing
Most Popular Reply
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
5y@David New
Here are some of my thoughts which people can addd too
Note investing:
Pros:
1. year round in states you prefer
2. Many aspects, firsts, seconds, performing, non performing, seller financing, hard money lending.
3. Greater opportunity for higher profits
Cons:
1. Not passive
2. Need to build a team
3. Systems intensive and higher overhead
4. Higher risk
5. Licensing
Tax liens:
Pros
1. Passive
2. Less volatile
3. Low barrier entity
Cons
1. At mercy of jurisdiction for sales
2. Very high competition
3. Cannot be done online in every location
7e investments53 Reviews
31 Replies
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes5y
@David New
Here are some of my thoughts which people can addd too
Note investing:
Pros:
1. year round in states you prefer
2. Many aspects, firsts, seconds, performing, non performing, seller financing, hard money lending.
3. Greater opportunity for higher profits
Cons:
1. Not passive
2. Need to build a team
3. Systems intensive and higher overhead
4. Higher risk
5. Licensing
Tax liens:
Pros
1. Passive
2. Less volatile
3. Low barrier entity
Cons
1. At mercy of jurisdiction for sales
2. Very high competition
3. Cannot be done online in every location
7e investments53 Reviews - Rental Property Investor · Atlanta, GA · Member since 2019 · 78 posts · 33 votes5y
@Chris Seveney Thank you so much! This is the exact type of feedback I was hoping for.
- Investor · Kingston, WA · Member since 2008 · 1k+ posts · 1k+ votes5y
Hi @David New I agree with Chris's analysis, althought it depends whether you are planning to do your investing as the primary sponsor or in a note or tax lien fund. The fund model is a lower yield but spreads your risk across multiple assets, where as if you directly buy a note or tax lien your money is allocated to one asset that could go south and create negative cash flow.
- Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes5y
I look at notes as very risky because I don't understand them.
i look at tax liens as very risky because I DO understand them
I don't do notes, although I know that if you do them well they can be quite profitable. As @Chris Seveney says if you want to maximize the profitability it is real work. Tax liens are incredibly competitive right now and the returns are being driven down. I have been doing this for 15 years and the competition is higher than ever right now.
The problem is there is a LOT of money chasing yield. Much of this money is getting into newer areas they don't fully understand the risks of.
I am very skeptical of tax lien courses. The rules on tax liens are very complex, and vary tremendously from state to state. I have seen a lot of incorrect information out there. If you want to learn tax liens learn from someone who does them in the specific area you want to invest.
There is a lot written here about both tax liens and notes. We have many people here who are experts in particular states for tax liens and deed. My specialty is MD tax liens. - Specialist · Blacksburg, VA · Member since 2015 · 12 posts · 9 votes5y
I agree with everything said so far. I think tax liens are really it's own animal while hybrids and tax deeds with right of redemption are more similar to notes. Pure tax deeds are basically like buying properties at foreclosure. If you plan on going the fund/partner route they can all be extremely passive. If you want to do it on your own then generally speaking tax liens would be the most passive.
I don't think anyone can really make generalizations regarding risk and return of notes vs liens. Perhaps once upon a time you can say liens were lower risk and steady returns. However, as @Ned Carey pointed out, there is more money coming into this space than ever before and the competition is quite fierce. Depending on the state you are looking at, it's suppressing returns and/or increasing risk, usually both. I assume the same is happening in the note space so you really need to nail down as many particulars as you can before you start making comparisons.
I would suggest you first decide how much money you want to invest, how much time/effort you want to spend, and what kind of return you need to make it all worthwhile. Then the experienced note investors like @Chris Seveney may be able to tell you how well that aligns with note investing. Similarly with tax liens with the additional caveat that it will be state specific.
As for tax lien courses, I suppose it is possible for there to be a useful course for a specific state. However, I do not believe there could be a useful course for tax liens as a whole. The statutes governing tax liens just vary too much from state to state.
- 5yDon KonipolBusiness MemberInvestor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
@David New
@Ned Carey said it all; too much money chasing too few good deals, for both arenas
- Dallas, TX · Member since 2011 · 5 posts · 0 votes5y
I'm glad this thread got started. I'm looking into the note space as well. I'm getting all excited about it and absorbing as much information as I can, but sourcing good deals at a deep enough discount as a new note investor is my biggest concern. I'm not afraid to put in the time and work, but my concern is that all there will be available is the lowest of the low hanging fruit that's selling for 75 cents or more on the dollar (can't verify this, just my concerns and going by some of the responses on this thread).
I'm also concerned about the licensing aspect. It sounds like licensing is required for GA, KY, IL, and CA (in the near future). Are more states trending toward requiring licenses by the note holder? If so, how will that effect the business and present note holders. It sounds like these are lending licenses, which I'm assuming is not simply taking a weekend course and passing a test.
I would love to hear more from the experienced guys like Chris. I'm assuming most of you are buying pools and have established relationships with sellers. If you were just starting out today, would you still do it? By the way Chris, I was surprised to see you list "higher risk" as one of the cons to note investing. While I understand there is definitely risk, it seems that the multiple exit strategies coupled with being collateralized by real estate is being touted by most podcasters and industry experts as making notes a lower risk investment than even stocks? (Also thanks for doing the good deeds podcast.. tons of valuable information).
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes5y
Starting out you will typically be buying from the low hanging fruit as I have found the best deals come from relationships with certain funds which took time to build. Buy buying low hanging fruit does not mean you are paying more all the time or poor quality assets. I have several assets right now I am buying off of paperstac. They are out there just need to spend time finding them.
For licensing, I think states will continue to be more restrictive especially with the potential for the number of foreclosures coming down the pipeline, but I also think its not something that will happen overnight and will take years. Over the last decade have the rules changed - yes, but still ample opportunity for investors. Rules really are more for the POS investors out there who want to bully people out of properties.
I am buying pools of assets typically but also do buy one offs. My recommendation I tell people is to find one or two sellers and really focus on that relationship, having ten sellers in your database and the ability to only buy from one makes you just another name on a CRM email campaign list. Get a relationship with one, reach out to them and build that relationship for long term and you will have greater deal flow. I would say 80% of my portfolio comes from 2 sellers.
Lastly regarding risk, do not believe the BS you hear spouted from some "gurus". Let me guess, they also have a course they are selling.
There is significant risk in this business - as you are guessing on a property value without seeing the inside of the property. When there is 4' of water in the basement and the house has mold on all the walls it can significantly impact a properties value (trust me I know). While you do have multiple exit strategies, you also are dealing with significant variable called the borrower who also has many retainage strategies I will call them (ways to keep the property), including Bankruptcy, counter claims, etc. The risk increases 10-fold depending on the investors level of experience, I know many investors who are unaware of the MERS issue in Maine, CFD's in MD or Iowa, licensing in certain states, title issues etc. and still invest in these areas.
While notes are secured by real estate, they still exhibit significant risk.
7e investments53 Reviews - Dallas, TX · Member since 2011 · 5 posts · 0 votes5y
Thanks for the detailed response Chris. And yes, mostly hearing about the lower risk from those with a course to sell.
- Specialist · Phoenix, AZ · Member since 2011 · 698 posts · 629 votes5y
Be prepared to do a LOT of reading statutes for tax lien investing. I stumbled into it in the late 1980's because it was "passive" investing. When I found I had to learn and understand statutes for the state, the county and sometimes the city - I began to joke that I was becoming a paralegal in regards to tax liens. There is a lot to learn and each state/county and sometimes city differ. And the rules keep changing, but you have to be looking for the rule changes - they don't necessarily inform you until the auction. Tax lien funds sound interesting, but you really need to see how it is being managed and how they distribute income and property sale proceeds if they end up with any through foreclosure. Many have high management fees. Tax lien investing is not as passive as it sounds.
- Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes5y
@Chris Seveney you said "CFD's in MD" What is a CFD?
"When there is 4' of water in the basement and the house has mold on all
the walls it can significantly impact a properties value (trust me I
know)"This reminds me of a house we had. Our contractor went to go into the basement. It was full of water, but the water was so clear he didn't realize it. He was quickly soaked to the skin. Since he was wet anyway he decided to swim around the basement.
"do not believe the BS you hear spouted from some "gurus"."This applies to Tax Liens also.
@Jerry K. wrote
"Tax lien funds sound interesting, but you really need to see how it is being managedI just can't see how a tax lien fund can offer any return in today's environment. Many of these funds could lose money when they get down to the ones that don''t redeem. They may find they can't profitably foreclose to recoup their costs. The problem is that these buyers won't realize their mistake for two to three years.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes5y
@Ned Carey
Cfd is contract for deed also known as land contract or agreement for deed
7e investments53 Reviews - Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes5y
@Chris Seveney Thanks, we don't do those in MD so I guess that's why I didn't know what it was. :-)
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes5y
@Ned Carey
I know some people that do and I cringe when I see them. Same as in Virginia - people think because they have many benefits in other states that they have benefits in this region which is actually the opposite.
Maryland has a crazy law that if it’s not recorded then at any time the borrower can walk and request their $ back, so let’s say they pay for five years, stop paying for a year and house depreciated and is worth a lot less. If contract holder didn’t record it by law the borrower can get 100% refund of all prior payments and walk away and their is no discount for assumed rent. Crazy law but that’s the law in MD.
Another reason to always have a good attorney in your back pocket
7e investments53 Reviews - 5yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Ted Li:
I agree with everything said so far. I think tax liens are really it's own animal while hybrids and tax deeds with right of redemption are more similar to notes. Pure tax deeds are basically like buying properties at foreclosure. If you plan on going the fund/partner route they can all be extremely passive. If you want to do it on your own then generally speaking tax liens would be the most passive.
I don't think anyone can really make generalizations regarding risk and return of notes vs liens. Perhaps once upon a time you can say liens were lower risk and steady returns. However, as @Ned Carey pointed out, there is more money coming into this space than ever before and the competition is quite fierce. Depending on the state you are looking at, it's suppressing returns and/or increasing risk, usually both. I assume the same is happening in the note space so you really need to nail down as many particulars as you can before you start making comparisons.
I would suggest you first decide how much money you want to invest, how much time/effort you want to spend, and what kind of return you need to make it all worthwhile. Then the experienced note investors like @Chris Seveney may be able to tell you how well that aligns with note investing. Similarly with tax liens with the additional caveat that it will be state specific.
As for tax lien courses, I suppose it is possible for there to be a useful course for a specific state. However, I do not believe there could be a useful course for tax liens as a whole. The statutes governing tax liens just vary too much from state to state.
what is missed in Tax lien investing is the fact that many tax liens are worthless. Notes in my mind are a little easier to understand.
from creating your own ( private lending ) to buying an already created note.. and of course the majority of notes out there that are sold off are on owner occ properties so that brings in a whole nother level of guidelines one MUST follow. We have only dealt in commercial paper as its simply not regulated like Owner occ.. but its not as plentiful.. then there are licensing issues in some states.
- 5yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Chris Seveney:
@Ned Carey
I know some people that do and I cringe when I see them. Same as in Virginia - people think because they have many benefits in other states that they have benefits in this region which is actually the opposite.
Maryland has a crazy law that if it’s not recorded then at any time the borrower can walk and request their $ back, so let’s say they pay for five years, stop paying for a year and house depreciated and is worth a lot less. If contract holder didn’t record it by law the borrower can get 100% refund of all prior payments and walk away and their is no discount for assumed rent. Crazy law but that’s the law in MD.
Another reason to always have a good attorney in your back pocket
Chris I suspect the intention of that law is to record the buyers interest.. so the seller cant do what many do with contract for deed.. just kick them to the curb with no real due process.. recording it probably makes the seller have to do some sort of foreclosure action ( just speculating).. And I could see this law used to help those that don't understand how these transactions work.. but that is a stiff penalty no doubt..
- Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes5y
Originally posted by @David New:
I'm looking to start investing somewhat passively on the side of my normal day to day job. I've been intrigued by the idea of note investing and tax liens. Has anyone here have experience with both? What are the pros and cons to each? Does one offer better returns than another? Is one more suited to do part time than another one would?
I have been looking at a handful of courses online for each but wanted to determine which route I would like to go first. Any feedback someone could give me would be appreciated.
The pros with tax liens is the potential to get a high rate of return on the lien plus potentially owning the property if the property isn't redeemed. The con is the exact opposite of the pro- Low-interest rates & the property is redeemed.
We prefer notes (We use to lend). The pros- Income certainty (relatively anyway); Never had to foreclose on a note but owning a note or a portion of a note in a 1st position provided extra security.
- Rental Property Investor · Des Moines, IA · Member since 2020 · 232 posts · 116 votes5y
To kind of piggyback on a lot the other's insights.
With a lot of things in real estate, it goes through cycles, and Notes and Tax instruments are no different.
In that every couple of years, a guru will hype up the "passive" nature of Notes and Tax investments, and how you can buy properties for "pennies on the dollar!!".
But then the guru downplays the risks involved, specifically if you are self-servicing the notes, or any of the very specific rules that vary from state to state and locality to locality for the Tax investments.
On the paper side of investing, I'm only in the Tax Lien space, and only in Polk County, Iowa at this time. And like @Jerry K. mentions, which I 100% agree with. I've also had to keep reading and re-reading and re-reading the rules/laws on tax lien investing for my specific area, to stay up to date on the rules of the road. So if reading isn't your thing, and you want a hands off/passive investment, direct Tax instrument investing isn't it.
And I would slightly disagree agree with @Jay Hinrichs that many tax liens are worthless. Because I would I say that it depends on your definition of worthless, and if you're creative enough and resourceful enough, to come up with a use for the land.
So to pull a page from my own tax lien investments. Right now I've been buying up "worthless" slivers of land across the city that have some kind of road exposure (either within a neighborhood or on a busy road.), for about $200-$300 all-in, and yearly property taxes of about $20. And I'll be using those "worthless" pieces of land, as spots for my bandit signs (except my sign with be a HUGE 4'x8' professional banner, kind of like how commercial brokers advertise on raw land), to advertise that "I buy houses" with my phone number and website. And those signs will be working for me 24/7/365 letting the public know that I'm a buyer. While also solving a lot of the inherent problems with bandit signs (illegally placed, don't look professional, don't look legit, etc.), while also dropping my marketing costs to next to nothing and doing it in a legal way (since it'll be on my land).
As a for instance, on one of the parcels that I just got a few weeks ago, that has road exposure on a major commercial corridor, it has a daily traffic count of ~24,000 cars a day according to the Iowa DOT for 2016. What would you pay to advertise your real estate business on a road with that much traffic in your market each month? $2,000…$5,000…$10,000….$20,000 per month? But instead it'll cost me ~$500 one time (cost to acquire the land, and ~$100 for the banner) and maybe $50 per month for lawn cutting, property taxes and general liability insurance.
So I would say that it's resourcefulness, that turns trash into treasure. Which is why a lot of us got into real estate in the first place, to turn turds into solid gold. And my example is just one of many, in searching for treasure in real estate.
- 5yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Rene Owczarski:
To kind of piggyback on a lot the other's insights.
With a lot of things in real estate, it goes through cycles, and Notes and Tax instruments are no different.
In that every couple of years, a guru will hype up the "passive" nature of Notes and Tax investments, and how you can buy properties for "pennies on the dollar!!".
But then the guru downplays the risks involved, specifically if you are self-servicing the notes, or any of the very specific rules that vary from state to state and locality to locality for the Tax investments.
On the paper side of investing, I'm only in the Tax Lien space, and only in Polk County, Iowa at this time. And like @Jerry K. mentions, which I 100% agree with. I've also had to keep reading and re-reading and re-reading the rules/laws on tax lien investing for my specific area, to stay up to date on the rules of the road. So if reading isn't your thing, and you want a hands off/passive investment, direct Tax instrument investing isn't it.
And I would slightly disagree agree with @Jay Hinrichs that many tax liens are worthless. Because I would I say that it depends on your definition of worthless, and if you're creative enough and resourceful enough, to come up with a use for the land.
So to pull a page from my own tax lien investments. Right now I've been buying up "worthless" slivers of land across the city that have some kind of road exposure (either within a neighborhood or on a busy road.), for about $200-$300 all-in, and yearly property taxes of about $20. And I'll be using those "worthless" pieces of land, as spots for my bandit signs (except my sign with be a HUGE 4'x8' professional banner, kind of like how commercial brokers advertise on raw land), to advertise that "I buy houses" with my phone number and website. And those signs will be working for me 24/7/365 letting the public know that I'm a buyer. While also solving a lot of the inherent problems with bandit signs (illegally placed, don't look professional, don't look legit, etc.), while also dropping my marketing costs to next to nothing and doing it in a legal way (since it'll be on my land).
As a for instance, on one of the parcels that I just got a few weeks ago, that has road exposure on a major commercial corridor, it has a daily traffic count of ~24,000 cars a day according to the Iowa DOT for 2016. What would you pay to advertise your real estate business on a road with that much traffic in your market each month? $2,000…$5,000…$10,000….$20,000 per month? But instead it'll cost me ~$500 one time (cost to acquire the land, and ~$100 for the banner) and maybe $50 per month for lawn cutting, property taxes and general liability insurance.
So I would say that it's resourcefulness, that turns trash into treasure. Which is why a lot of us got into real estate in the first place, to turn turds into solid gold. And my example is just one of many, in searching for treasure in real estate.
clever and creative.. although i suspect you start popping those signs up everywhere and the planning department may want you to get permits for them.. just like the big sign companies..
are you then quieting title to take full ownership.. or your just not worried no one will redeem these.. or are they actually tax deeds not liens ? I dont think buying a lien allows you to use or own the property ???? can you clarify for the other folks on this thread.
there is just no question that many tax liens expire and the folks that bought them lose their money.. and like you said not something the gurus really mention or focus on.
- Rental Property Investor · Des Moines, IA · Member since 2020 · 232 posts · 116 votes5y
@Jay Hinrichs I guess we shall see in time what Planning and Zoning have to say, but I'd rather ask for forgiveness, then permission in this instance. And I could always change the sign to be slightly political in nature like "Vote with your wallet, sell me your house, etc." and play the 1st amendment card. Time will tell, lol.
And thank you for asking for the clarification. I start by holding the tax lien (which grants no possession interest in the property here in Iowa). Only after redemption rights expire (by serving specific types of notices in certain timeframes), I would then turn in my tax lien certificate to the County, and the County would issue me title as a "tax sale deed", and then I would file a 120 day notice with the County recorder, which give's anyone with unknown rights to the property at the time the tax sale deed was issued, one last shot to get their property back through legal action in Circuit Court. And for anyone that might have had an interest, but didn't file legal suit within those 120 days, they are then barred by law and statue in Iowa from challenging my ownership in the property. (And then there are other things to do to convert the Tax Sale Deed into a Warranty Deed, but it involves the Abstract (Since Iowa in an Abstract state), and is kind of out of scope for this thread, but it can be done, since I've done it in selling buildable lots.)
Yes, absolutely many tax lien's aren't redeemed, and expire worthless. It's definitely the dirty secret of the tax business, that the gov't gets their money, but the investor is let holding an empty bag, because they were sold on the sizzle and the education was general in nature, and they weren't taught how to convert this tax paper into profits. But losses happen in this space, even to me. Just last year, I had two certs, that didn't get redeemed, and I couldn't find an end buyer, or come up with a final use myself. So I'm definitely not a Hall of Famer in the space by my own judgement, but I've had more wins than loses at this point in time so that's something.
And it is possible to self-educate in the tax space, which is what I did, if your take a targeted approached to your investment area. Since a lot of the information is freely available thru your taxing authority Notice/Rules of the Tax Sale, State Laws, and sometimes free State Bar Association presentations from prior conferences on the topic. Start by reading those, to understand the rules and how to play the game and who the players are. And if your get stumped, hop onto BP and search the forums/post questions (like this one), and the giver's will freely give you what they know, both pro's and con's, to save you some heartache.
- 5yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Rene Owczarski:
@Jay Hinrichs I guess we shall see in time what Planning and Zoning have to say, but I'd rather ask for forgiveness, then permission in this instance. And I could always change the sign to be slightly political in nature like "Vote with your wallet, sell me your house, etc." and play the 1st amendment card. Time will tell, lol.
And thank you for asking for the clarification. I start by holding the tax lien (which grants no possession interest in the property here in Iowa). Only after redemption rights expire (by serving specific types of notices in certain timeframes), I would then turn in my tax lien certificate to the County, and the County would issue me title as a "tax sale deed", and then I would file a 120 day notice with the County recorder, which give's anyone with unknown rights to the property at the time the tax sale deed was issued, one last shot to get their property back through legal action in Circuit Court. And for anyone that might have had an interest, but didn't file legal suit within those 120 days, they are then barred by law and statue in Iowa from challenging my ownership in the property. (And then there are other things to do to convert the Tax Sale Deed into a Warranty Deed, but it involves the Abstract (Since Iowa in an Abstract state), and is kind of out of scope for this thread, but it can be done, since I've done it in selling buildable lots.)
Yes, absolutely many tax lien's aren't redeemed, and expire worthless. It's definitely the dirty secret of the tax business, that the gov't gets their money, but the investor is let holding an empty bag, because they were sold on the sizzle and the education was general in nature, and they weren't taught how to convert this tax paper into profits. But losses happen in this space, even to me. Just last year, I had two certs, that didn't get redeemed, and I couldn't find an end buyer, or come up with a final use myself. So I'm definitely not a Hall of Famer in the space by my own judgement, but I've had more wins than loses at this point in time so that's something.
And it is possible to self-educate in the tax space, which is what I did, if your take a targeted approached to your investment area. Since a lot of the information is freely available thru your taxing authority Notice/Rules of the Tax Sale, State Laws, and sometimes free State Bar Association presentations from prior conferences on the topic. Start by reading those, to understand the rules and how to play the game and who the players are. And if your get stumped, hop onto BP and search the forums/post questions (like this one), and the giver's will freely give you what they know, both pro's and con's, to save you some heartache.
Heck if your just bidding a few hundred bucks and it goes poof no biggee right just the cost of doing bizz.. sounds like you got it handled in your area.. and i supsect there is not the uber competition like there is in other states and other metro areas..
- Rental Property Investor · Des Moines, IA · Member since 2020 · 232 posts · 116 votes5y
@Jay Hinrichs And there are about a 6 or so big players in Iowa, but they are more or less regional players instead of nationwide companies. And as someone told me a long time ago, if you play the game by the other man's rules, you'll always lose. So I had to figure out my own way to win at the game, and it has to do with figuring out the quirks in the game and exploiting those holes that the other players don't see.
- 5yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Rene Owczarski:
@Jay Hinrichs And there are about a 6 or so big players in Iowa, but they are more or less regional players instead of nationwide companies. And as someone told me a long time ago, if you play the game by the other man's rules, you'll always lose. So I had to figure out my own way to win at the game, and it has to do with figuring out the quirks in the game and exploiting those holes that the other players don't see.
there was a famous case in San Francisco.. there was a strip of land.. in a neighborhood of 3 to 20 million dollar homes.. and someone bought it at TAX SALE got the deed.. then tried to block off access to all those owners and hold them out for a huge payoff.. not sure what happened. but I know my dad ended up with all sorts of strips of land he let go to tax's and sometime we would get a check sometimes not.
- Rental Property Investor · Des Moines, IA · Member since 2020 · 232 posts · 116 votes5y
@Jay Hinrichs Funny you bring that up, because that was part of the reason I got into tax lien investing. Was because of that specific case in SF. I've bought all the roads within different HOA's multiple times, I've bought parking spaces within condo complex, I've bought easements into development, right-of-ways, and common areas within PUD's. None have every gone to a tax sale deed, but I make a little bit of money, and it gives me new and strange stories for cocktail parties, which helps breaks the ice that I'm a real estate investor. Gotta have fun with this, or you'd go crazy.
- 5yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Rene Owczarski:
@Jay Hinrichs Funny you bring that up, because that was part of the reason I got into tax lien investing. Was because of that specific case in SF. I've bought all the roads within different HOA's multiple times, I've bought parking spaces within condo complex, I've bought easements into development, right-of-ways, and common areas within PUD's. None have every gone to a tax sale deed, but I make a little bit of money, and it gives me new and strange stories for cocktail parties, which helps breaks the ice that I'm a real estate investor. Gotta have fun with this, or you'd go crazy.
one that sticks out in my mind was a parcel i bought that was a remainder of a large ranch that had been subdivided into 20s and 40s
there was a remainder parcel 100X 4000 plus feet.. I bought that and actually sold it to someone who used it to camp on and such.. CA is a tax deed state and there is a massive amount of property that is sold each year.. 99% of it vacant land.
Join the conversationCreate a free account to reply, vote on answers and follow this thread.