Hello- Tax Lien Investing

[Elizabeth Patrick]

Hello. I am new to this websites and have recently joined an investment club. I went to a seminar and got caught up in the moment. Before I knew it, I paid $1600 to join the Tax Lien Buyers Club. The speaker made it seem super easy and I bought in. After looking over the website and reading a lot of info on tax liens and deeds, I see it's not so easy. I have a lot to learn. Since I invested this money, I plan on learning as much as I can and following through with investing. If anyone has any helpful advice I would appreciate it. I live in a tax deed state, but would like to start off with tax liens. Elizabeth

[Wayne Brooks]

@Elizabeth Patrick Definitely learn the laws, and more importanty, the implications of those laws in your state.  And stick to a state where you really know this.  One thing that makes me suspect of these guys is I see them "reselling/brokering" Over The Counter liens.  In Florida if a lien is available over the counter, (at 18% interest verses the typical 2-5% most get bid down to) that means that the dozens, or hundreds, of tax lien buyers at the lien auction All decided not to bid on these, for a reason......unbuildable lots, swamp land, useless ROW's, etc.

A quick example of the "implications" of the tax lien law here....the general understanding is that you buy a tax lien, and if the owner doesn't redeem within 2 years, you can send it to a tax deed auction, where you will be paid from the auction proceeds. But, to send it to the auction, you must first pay off All the other outstanding tax liens on the property. So, if you paid $1,000 for a lien, you may have to pay off 4-6 years worth of other liens to send it to an auction, and this may end up being more than the property is worth.