Video: How I got 16% rates last year in AZ tax liens
I've been asked some questions about my blog posts and how I use spreadsheets in my tax lien investing.
As of 3 years ago, I concentrate solely on Online Tax Lien Auctions.
Why?
Here's a few of the bigger reasons;
- Easy to figure out the competition strategies from the previous year's results.
- Easy to invest and no time spent sitting in crowded county building rooms waiting for the liens I want to bid on.
- Did I mention easy to figure out - and beat - the competition's strategies by using previous year's results?
Here is a link to a video I made for a group of people about my strategy in a 2011 auction. I show my spreadsheets, my thought process on bid strategy (due diligence was not covered in this video) and my results.
I'll keep this video up for a few weeks. It shows how I decided to go for high rates of return in Arizona tax liens. The top is 16% and I was able to get 16% for every tax lien I bought in that auction. And they are worthwhile, buildable, residential lots - not landlocked, slivers of land.
Here's the link: https://youtu.be/GjncICb5PLE
Comments (5)
I saw some winning bids are 0%, what is the strategy? How can he/she make money?
Eric Liu, over 2 years ago
Tal,
You are correct. If the lien is 3 years old, you can foreclose on it. My attorney said that during Covid right now, they are not allowing foreclosures to begin. Note - the 3 year redemption period starts on the date the tax lien is sold - not the year of the taxes. 2018 taxes are due in 2019. If not paid, then they are sold as a tax lien in February of 2020. Thus, the three year redemption period starts in February of 2020 for the 2018 taxes. They will be available to foreclose in February 2023. Good luck!
Jerry K., over 3 years ago
@ Jerry K. - thx for another great post
@Tal Freibergs - I'm following same strategy as you and looking to purchase tax liens that are 3+ years old.
Dennis K., over 3 years ago
Hey Jerry, Thanks for sharing your knowledge. I recently bought a tax lien cert on vacant land in Mohave County. When I first spoke to the treasurer about the foreclosure process I thought that she said that if the lien has already gone up for auction and three years have passed, since that time, then if I buy the tax lien certificate I can begin the foreclosure process immediately. Is that correct?
Also, have you foreclosed on any and what was your legal fee? I was quoted $1750. I should have asked that attorney my previous question but I didn't know what I didn't know at that time.
Tal F., over 3 years ago
Tal,
You are correct. If the lien is 3 years old, you can foreclose on it. My attorney said that during Covid right now, they are not allowing foreclosures to begin. Note - the 3 year redemption period starts on the date the tax lien is sold - not the year of the taxes. 2018 taxes are due in 2019. If not paid, then they are sold as a tax lien in February of 2020. Thus, the three year redemption period starts in February of 2020 for the 2018 taxes. They will be available to foreclose in February 2023. Good luck!
Jerry K., over 3 years ago