Lock in your PROFITS — Sell your Tax Lien Certificates!

Lock in your PROFITS — Sell your Tax Lien Certificates!
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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 craigslist.  You’ll find local buyers—some of them not experienced with tax lien investing—who might take a stab at buying your liens.  You may have to talk to them about the process, but you’ll often find the less experienced investors pay more for your liens.  You can also advertise for free on a site called BiggerPockets.com which has a good community of tax lien investors

OK…something new for me…send me details of your tax lien certificate(s).  If I get a few responses, I’ll create a page for those selling liens or looking to buy.  I get hundreds of visits to my site and will setup a confidential way for buyers to get in touch with you. Just fill out your information on my About Me page.

WHAT PRICE WILL I GET FOR MY TAX LIEN?

The question I always get is “how much is my lien or liens worth?”  And, of course, the answer is “it depends”.  Liens are always worth close to their principle value or more if:

  1. It’s a new lien.
  2. It’s tied to a valuable property (or at least has low lien to value).
  3. It is earning a high interest rate.
  4. It has value for some non-financial reason for the investor (it’s a neighbor, lienholder, etc)

The Principle Rule – get the word out there to as many people that you want to sell your tax liens! Contact me if you need help—I’ll even add you to my e-mail list for more insights and tips.

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