All Forum Posts by: Matthew Gould

Thanks for the responses. 

@Keith Thompson, there are five properties in the Essex County area. None of the five have priors, but the properties are in rough conditions. They're structually sound, but definitely need to be rehabbed. 
If I had to guess, three are likely to redeem and one is likely to make to foreclosure. 
Have you partnered previously on a lien? If so, how did you structure the partnership? 

@Ned Carey Only one of the five liens redeemed, but those funds do not cover the sewer lien taxes and the new property taxes that have become past due. The other liens I have are currently still accruing interest. If you were looking for someone to loan you the money, would you use a bank? Someone you've partnered with previously? 

@Jared Cucci That is exactly what happened. My strategy was to find a couple small liens that, based on my strategy, would have redeemed quickly to reinvest in the other liens. The liens are not redeeming as quickly as I thought they would. PM me if you're interesting in structuring a deal. 

 

I targeted several sewer liens in my area of choice thinking I would receive the interest on them quickly. Three months later, a couple of them now have owed taxes (on top of the sewer subs) that, as the lien holder, I have the opportunity to pay at an 18% interest rate but do not have the funds to keep up. 

If you were in my position, what would you do?  

Hi @Sonny Sach

PM message me and I'll send you my template. 

Hi @Sonny Sach

Competition in Northern NJ, where I invest in, is also fierce, but they are areas you can buy liens for 18-24% in NJ. Some of the auctions in NJ are online, and I've notice those are much more competitive than the auctions at various town halls. If you can make it to NJ and do your homework, it's a quality tax lien market. 

Good Luck. 

Hi @Account Closed - 
I was just in your shoes and bought my first batch of liens this past December. 

•  if the lien is bid down to 0% or at a premium at auction, the lien will not generate interest for you until you pay the 1st Quarter's subsequent taxes. depending on the dollar amount, you will generate 8% or 18% (lien < $1500, 8%: lien >$1500, 18%) 
• as long as the lien is redeemed within 5 years (may vary from town to town and county to county) the premium is given back. Obviously, if you foreclose on the property, the premium stays with the town. 

Hope that helped. Reach out with any other questions.

Hi @Melissa Kirchhoff - 
As @Ned Carey mentioned, I would sell it for a premium and that premium would depend on how close the home was to the foreclosure process. The closer to foreclosure (2 years in NJ), the higher premium I would sell. I'm not sure about your market, but in NJ, there are two types of liens: tax and water/sewer. The type of lien would factor into the price since sewer liens start at 8% for the first $1500. 

Make sure you think of all the factors. If several lien investors are eager to buy your lien, you may have made a mistake in pricing. 

@Andrew Stair , Congratulations! 
Would you mind sharing the purchase price, estimated rehab costs and the price point you plan to sell? I'm close to Orange, NJ and interested in the specs. 

Hi @Agustin Figer    
I'd have to agree with @Roman M.

Tax Liens will give you the best opportunity to potentially obtain property at a fraction of the cost, or receive the interest associated with them. Pick a state to learn the lay of the land and go after it. 

With that extra income/month, you could get into several avenues of RE Investing. Just make sure you and your wife enjoy the avenue you choose. 

Good Luck! 

Hi @Raphael Turner

The laws regarding tax liens vary from state to state, so begin educating yourself in the state's tax laws.  Is the house located in Virginia? 

@Peter Milman Just make sure you stay current on the taxes in Essex County. Big lots in Essex have a high premium at the tax lien auctions I've attended with developers looking to get a lot at a discount. Once the house is torn down, make sure you go to town hall and confirm w/ the tax assessor that your rates should be adjusted until you're ready to sell. 

Good Luck!