90% of All Tax Lien Investing Websites are Just Hype and Scams

90% of All Tax Lien Investing Websites are Just Hype and Scams

You probably already knew this.  If you do a search for anything related to tax lien certificates, you’ll come across websites promising you huge returns, little information or low-value product sales pages. I do alot of research on different states’ tax sales and tax lien law and it’s completely annoying what you find out there.

That’s why I created the tax lien investing website!

I really created this just for myself as a way to put my thoughts and resources together. Obviously, it’s expanded out quite a bit since I first started the blog.  I found that most of my emails from readers were new investors that jumped into buying tax liens because they signed up for some “easy money” webinar or marketing package.  Then, they discovered they didn’t have the first clue about the underlying real estate they bought liens on or they didn’t understand that their state required notices to be sent out, etc.
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Lock in your PROFITS — Sell your Tax Lien Certificates!

Lock in your PROFITS — Sell your Tax Lien Certificates!

For many, tax lien investing is simply means to a safe return on their investment.  They do not want to deal with foreclosures nor take tax deed to properties that will require many hours of work.  I usually see three categories of investors that fall into this category.

  1. You are out-of-state.
  2. You are not experienced with foreclosures, rehabs, evictions, etc
  3. You just want to minimize your risks and lock in a profit

The good news is – there is a secondary market to sell your tax liens! 

Really, it’s out there; you just need to put in a little work to find it.  You’ll also need to keep a keen eye for low-ball offers on your tax certificates from speculators looking to take advantage of an unknowing seller.

INVESTORS –The obvious buyer is another tax lien investor.  How to find one willing to give you a serious offer? 

Networking with others at auctions, online forums and real estate investment clubs.  Find out if there are any other lien holders—these can include tax lien investors who hold positions before or after you – or, an alternative would be a mortgage holder.  You may find that they want to buy your position from you because it may be quicker to foreclose on your tax lien than their mortgage.

If you invest in tax liens in a judicial foreclosure state—call around to different tax lien attorneys. Attorneys that specialize in foreclosing on tax certificates and filing quiet title suits. The unspoken rule in these states is that the attorneys make all of the money. Why? They can charge legal fees that are well in excess of their actual costs and they get paid when the lien redeems. In states like Maryland, DC and New Jersey, a good percentage of the investors who show up at the tax lien auction are lawyers to invest in their own portfolios.

ADVERTISE

I’ve had success advertising my liens on (more…)

Buying Tax Liens on Credit – What Not to Do

Buying Tax Liens on Credit – What Not to Do

The following post involves an advertiser that I receive commission from, but it’s worth telling a story about why they are on my website: 

So, when I first began buying tax liens a few years back, I was more strapped for cash than I’d like to admit.  The real estate market was booming and I had my money in quite a few deals (luckily, I wasn’t killed too bad in the market fall).

After learning a little bit about buying tax certificates, I wanted to try it out by buying a few tax liens in New Jersey.  I had heard about Lending Club from a personal finance blog that touted the returns you could make from investing with them—basically, they pool together investors to participate in unsecured, personal loans.  The returns are OK—mostly in the low teens or high single digits.  What’s nice about it is that you can pick which loans you want to be in and only need to invest in $25+ increments.
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2013 Indiana Tax Lien Auctions

2013 Indiana Tax Lien Auctions

I wanted to point everyone to a quick guide I created last year to give you an overview of Indiana tax liens.  Indiana is a very lucrative state to purchase tax liens in; however, it’s not without risk because the bidding prices can well exceed the amount of taxes owed–this is called an overbid auction.  Find our more on my page dedicated to the Indiana tax sale.

You can also find great information about a specific Indiana tax lien auction by going directly to the auction or tax collector sites for the counties you are interested in.  The largest auction is held in Marion County, the county seat for Indianapolis.  It’s a public auction and the Marion County Treasurer provides great information about bidding procedures and requirements on their tax sale webpage.

If you’re interested in the smaller counties in Indiana, I’ll direct you to the website of SRI Incorporated.  They manage the delinquent tax certificate auctions for a large number of counties.  Be sure to click on their FAQ guides about Indiana tax certificates if it’s your first time to one of these tax auctions.

Could your Tax Lien Certificate be a SALE IN ERROR?

Could your Tax Lien Certificate be a SALE IN ERROR?

Like most real estate investments, tax liens and tax lien certificates are sold “caveat emptor”, that is, there are no warranties, representations or guaranties of the value of your investment. This is especially true with tax liens as the courts have held time-and-time again that the investor bears all of the risks of the investment.  Additionally, the county tax collector or treasurer has no stake in purchase—they don’t care if you make or lose money—all they want is your cash so they can pay their county bills.

However, there are times when mistakes are made and will entitle you to a refund. These mistakes are called “sales-in-error”.

The chances that you receive a refund vary by state as does the amount of interest you will receive (if any). For example in South Carolina, if a “sale-in-error” is declared on your lien during the redemption period, you will only receive your investment plus the county’s cost of funds—generally the money market rate that the county receives on its own cash.  (more…)

Newbie to a Tax Lien Auction?

Newbie to a Tax Lien Auction?

If you haven’t been to an auction before, you should absolutely attend one to get a feel for its action and pacing—a dry run before you actually start putting your own hard earned cash out.  It doesn’t necessarily have to be a tax lien auction, just a well-attended public auction. 

It’s just an auction, why worry?

Auctions are purposely designed to get the best price possible for the seller (not the buyer).  Although tax certificate auctions are not quite as high-pressured as other types of auctions (REO, automobiles, etc) they still have many things going for them:

  • A high, overall excitement level
  • Your competitors sitting in the same room as you
  • The marketing concept of ‘scarcity’ – limited time and availability of a product

I remember my first auction.  It was years ago when I was attending a certificate exam.  During the break, I happened to walk by a large real estate auction.  I took a seat and immediately felt the adrenaline rush—ready to buy anything—the properties just looked so good and with everyone else bidding, it was hard to jump into the fray.  Luckily, I didn’t have a certified check with me or I would be the proud owner of a couple REO properties.

Live, open-outcry tax lien auctions are normally very well attended.  Those bidding fall into three categories:

  • Large, corporate tax lien buyers looking to buy as much as they can
  • Local, experienced investors looking for bargains not bought by the corporate buyers
  • Newbies looking for one or two properties but largely shutout by the two characters above

If you fall into the last category as a newbie—don’t worry!  Preparation for the auction goes a long way as long as you do your homework on what to expect.  

Here are the steps I recommend to make your auction a success:

  1. Get the latest copy of the entire list of delinquent tax lien properties. You can find these lists with the county tax collector or subscribe to a listing service such as Tax Sale Resources (http://taxsaleresources.com) (You can even use my discount code for 10% savings: 1833520034FL3cef207f )
  2. Bring the list with you and highlight the liens you are interested in and have done your due diligence on.
  3. Make sure the list is very legible and bring a couple pens to cross out liens that were removed just prior to the sale so you don’t lose your place when the auction starts.
  4. Read the rules of the auction carefully—know when you must register, what type of funds to they take, how the auction is handled, what order will the sale go?
  5. Attend the practice auction—most auctioneers will spend twenty minutes or so at the very beginning to show how he plans to go thru the properties.
Do I Need to Hire a Tax Lien Attorney for Quiet Title?

Do I Need to Hire a Tax Lien Attorney for Quiet Title?

STOP!  If you’ve found this page because you’re looking for a TAX LIEN ATTORNEY to solve an IRS issue or Federal or State Tax problem, then click here for a directory of local attorneys in your state that can help you SOLVE your IRS/Government Lien Issue.

Find a qualified local TAX LIEN ATTORNEY in your state to help you NOW!

If you’re looking to hire a tax lien attorney to help you with your investment (tax lien certificate, tax deed, quiet title), then keep reading below!


If you purchased a tax lien or tax certificate in a state that does not have a strict judicial foreclosure process, then your more than likely going to need to hire a tax lien attorney to file for quiet title if your lien does not redeem.  However, this step is not always required.  It really depends on what you are going to do with the property. 





 

What is a quiet title action?

An action for quiet title is a lawsuit that you, as the tax deed recipient, file with the court to eliminate any future title claims against the property and remove what’s called the “cloud on title”.  Tax deeds are the least defensible form of ownership for a property.  The taxpayer or mortgage company on the property could claim that they were never notified that they owed taxes.  Many times, there may have been a death of the property owner and the heirs never realized they lost the house for taxes.
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