Tax Lien Investing

[Steve Meyers]

Hi all, I've been wanting to get into tax lien investing for sometime now and I know each state has their own redemption rules etc.  What areas are typically the best to invest in tax liens?  Would love to be able to pick an experienced tax lien investor's brain on this

[John Underwood]

SC is a very good state.

You buy a lien and wait. You either get a check plus interest or a deed to the property shows up in the mailbox. 

Only a 12 month redemption window.

I am typically getting several deeds to houses every year.

[Brett Deas]

I have recently started looking into this after a conversation with some friends. I have met a good number of people who are active lien holders in Florida. 

[Ned Carey]

@Steve Meyers I suggest you invest where you know the market the best and or where you know the tax liens laws the best. 

Tax sale is no longer some obscure investment only a few know about. It is well know to large investment firms and they will move their money to the states with the best terms. As money flows to better states the returns tend to average out nationwide. While there will be exceptions generally people like me and @John Underwood do well because we know our local market and the intricacies of the laws in our states.  

[Bruce Lynn]

Kind of a tough question to answer in a way.   If you live in CA and I tell you the best place to buy is Baltimore...are you really going to move or visit or know Baltimore well enough to know what to buy and what not to buy?

I really don't know anything about CA tax liens or deed investing, but normally I would say the best place to buy is your own backyard.   It is not always just about the numbers...often it is also about knowing what you are buying.   You know where the mudslides are, where the forest fires are, where the homeless encampments are, where the good and bad school districts are and so much more.   Not to say you can't learn that somewhere else, but it's very tough.

I just posted some info about San Diego sale....check that out since that is where you are.

I would also go to your local or area REIA events....network. There will likely be one or two tax lien investors in any group, you just have to find them, or if they are not members, someone will know who they are and can point you to them outside of the group. I know it is a bit of a hike, but the LA REIA has had a couple of speakers over the last couple of years and probably worth the drive. Lloyd Segal runs a very good group there.

Read the book the 16% solution for some of the basics....don't pay $20,000 for one of the national speaker who roll through town selling snake oil.   They normally know just enough to be dangerous and get you into trouble vs really teaching you how to make money.

You might be close enough to look at AZ as well.  That might be an option.

Good luck and best wishes.

[Steve Meyers]

Quote from @John Underwood:

SC is a very good state.

You buy a lien and wait. You either get a check plus interest or a deed to the property shows up in the mailbox. 

Only a 12 month redemption window.

I am typically getting several deeds to houses every year.

 Awesome, thanks for the insight, what site do you use to purchase these?

[John Underwood]

Quote from @Steve Meyers:

Quote from @John Underwood:

SC is a very good state.

You buy a lien and wait. You either get a check plus interest or a deed to the property shows up in the mailbox. 

Only a 12 month redemption window.

I am typically getting several deeds to houses every year.

 Awesome, thanks for the insight, what site do you use to purchase these?

No site. I buy in person at auction.