Anyone Investing in Tax Liens?

Question

Who out there is investing in Tax Liens? What are the good/bad of doing so? I am considering investing in a program that does all the research to filter out the bad properties. The co. supposedly has negotiated to purchase all liens @ a discount. You pay $25/mo. to access their inventory. Is anyone familiar with such a program and do such programs work?

Thanks!

Joshua Dorkin · Answer

Folks - This is a discussion thread.  Please refrain from dealmaking or posting solicitations here. Use the Marketplace for that. Thanks.

John Rooster · Answer

This sounds like a scam to me. As others have said, tax lien investing is competitive, anything that is being sold at a discount by the County is probably garbage.

Andrew Hofing · Answer

@Wayne G. thanks for the info and article.

@Shawn Legree the company is from a seminar I went to.  You had to pay $1,499 upfront and then $25/mo. to access website and tax lien list.

@Ned Carey thanks for the words of wisdom.  Yes I was given a pitch by a guru's crony @ a seminar and from the sounds of it lucky I didn't buy into it.

Ray Corkran · Answer

@Andrew Hofing I'm not a fan of paying to have access essentially a "list" / inventory,  It usually comes with some sort of hook; like $1500.00.   As @Ned Carey said, "Make sure you know what you are buying." and "knowing the rules is key"  so with proper research one can avoid wasting money. Not to say avoiding risk, but at least you can favor the odds...

It's amazing how much information you can get online.  Not sure what State and counties you are looking into but I'm sure that you can find the inventory either online for free or find the phone numbers to call.  I make it a practice to be sincerely friendly on the phone when asking questions.... how is your day going.  have you been busy, forgive me for asking but I need help with something, If you could please tell me who to talk about... ,   etc... and if I can get a conversation started they will usually give me all the information I need or tell me how to get access to what I am looking for.  So many people call and demand information that they get sick of it.  I have called many counties in Maryland about tax lien info and they seemed happy I called and went out of their way to help me.  One lady even put together a whole package and express mailed it to me.

Michael Oldehoff · Answer

I'm with you @Ned Carey . Anything that I can buy at a discount is garbage and basically never worth even looking at.  Issues vary from massive IRS liens to back taxes totaling over double/triple the value of the property to absurd encumbrances.

edit: also I have no idea what the proper syntax is to tag people in forums and for some ridiculous reason it isn't posted anywhere in the faq....and it is frustrating.  I hate you all for it.

Ned Carey · Answer

@Andrew Hofing  I am suspicious mainly becuase of the "buying liens at a discount"  The only reason for a jurisdiction to sell below face value is because the property is crap and they know it.

Tax lien laws vary tremendously by state. Knowing the rules is key. I see national players come here to MD and make some very bad decisions. Tax lien investing is NOT risk free as the Gurus that pitch it say. Make sure you know what you are buying.

Goog luck - Ned

Shawn Legree · Answer

Sounds good @Andrew Hofing which company, I may be interested.

Michael Oldehoff · Answer

We buy tax liens on the secondary market but unfortunately never at a discount.  I should mention that we don't use any program like the one you described, we contact the lien holders directly.

Brandon Turner · Answer

I think @Ned Carey  invests in tax liens - right?

WAYNE G. · Answer

Hi Andrew

The rules for investing in liens vary from county to county.  The Washington Post recently had several articles on DC tax liens, and it created quite an uproar.  They are talking about reversing the sale of 142 liens.

http://www.washingtonpost.com/local/dc-politics/mayor-proposes-broad-reforms-to-tax-lien-sales/2013/09/13/a0933688-1cc0-11e3-8685-5021e0c41964_story.html?tid=auto_complete

Many counties can provide a list of liens on their website. Your criteria may differ from the screening site.  I don't buy liens with out at least driving by the property.