Tax Lien Investment in Alabama

[Laura Tabarez]

Hello Community! 

I'm so excited for my initial post. I am finally ready to jump into real estate investing as I have been saving up for the last couple of years to do so. I am looking into getting started with tax lien certs to gain hands-on experience with the business, and with lower risks. I have made a connection with another investor who is offering to sell some tax liens over to me. I am familiar with the auction process, but not with whole selling tax liens. Can anyone help me with how I can make a better-educated decision about this? What questions should I be asking? He is also a contractor who says we need minimal (2.5K) repairs to make them "livable" - that term scares me. Anything would help! Thank you in advance for this AMAZING community. 

Here is an idea of the offers I currently have. 

3 properties for a bundle price of 12K

1. Tax Deed
2/1 1008 sq ft
750/Rent estimator - Comps average 60K

2. Tax Certificate: 2019
3/1 1069sq ft
650/rent estimator - Comps average 60K

3. Tax Certificate: 2018
3/1 912sq ft
650/Rent estimator - Comps average 50K

[Denise Evans]

@Laura Tabarez, please read my posts about possession issues, and about redemption issues. In a nutshell, you could buy the property and start making repairs and the owner can sue you and claim the property was not legally abandoned, just vacant and in bad shape. You have to be careful about those issues. Redemption issues come up when someone sells you a tax certificate for $5,000 (or even a tax deed) but it turns out the owner (or former owner) still had redemption rights and can redeem for only $1,500.  You just flushed $3,500 down the toilet!