Looking to find information on Tax Lien investing - Ohio or Pennsylvania

[Sean Leonard]

Hi,

I'm starting to research tax lien investing. Given the state of the stock market over the last few years, I'm looking for a way to invest in certificates to gain an interest rate higher than what banks are offering and returns that higher than the stock market right now.

I listened to a few podcasts from Advanta on how to invest in tax liens in a self-directed IRA, however the management fees charged by Advanta are rather large compared to other retirement fund options...

I also found a few audiobooks from the library and listened to them:

Brian Mahoney - Tax Lien Certificates Property Investing.

C.R. Wesley - Understanding Tax Lien and Tax Deed Investing

Thomas C. Lee - How to Make Money in Real Estate Tax Liens

Problem is they're all fairly generalized and talk about the basics from a global/overview perspective, whereas Tax lien certificates are all county-specific and are based on local and state rules and regulations. It's like trying to find a needle in a haystack to find a county close to me that engages in this process.  Google searching isn't really finding anything either.

I live in Northwestern Pennsylvania (PA is a tax deed state, and my local county does not do tax lien certificates, they do property auctions to recollect taxes).  At this point in my career, I'm not looking to purchase more properties, but would like to invest in real estate via tax liens. Ohio, however is a hybrid state offering tax deeds and certificates (I saw online that only the counties with populations > 200,000 offer the lien certificates).

So, my question is: Does any one know of any resources that are more specific than what I've come across...that provide detailed information of specific counties or states (as opposed to just general information, or sales pitches for classes that cost $1000's)?

It seems like this is highly shark-infested waters, with lots of scams and scammers, and the actual information is difficult to obtain...

--Sean

[Chris Seveney]

@Sean Leonard

Lots

Of scammers in tax liens

For pennsylvania make sure to understand upset sale vs judicial sale.

Don’t want to buy an upset sale thinking getting property only to have to still pay the mortgage lender

[John Underwood]

Talk to you county tax office they should be able to tell you exactly how it works for your state.

Also you can create self directed IRA'S with checkbook control or a self directed Solo401k. I have both. Both of mine purchase tax liens and now both own multiple tax deed properties that are now rental houses.

[Bruce Lynn]

In Ohio I would look up the Tax Lien Lady....I think that is where she is based.  Never took one of her courses, but looks appealing.

Seems like I've seen some white papers on both states somewhere, but my quick google search did not reveal any results.   

Might be posted on a site like Tax Sale Resources.

https://www.taxsaleresources.c...

[Chad U.]

In PA, there are no tax liens, only tax upset sales where you take title to the property subject to any existing liens. 

In OH, you need to qualify with the particular county to buy, and most need a minimum purchase amount to buy in bulk.  They don't typically sell one-offs.  

[Sean Leonard]

Quote from @Chad U.:

In PA, there are no tax liens, only tax upset sales where you take title to the property subject to any existing liens. 

In OH, you need to qualify with the particular county to buy, and most need a minimum purchase amount to buy in bulk.  They don't typically sell one-offs.  

Any Idea what the price range would be for the "minimum purchase amount" and what would the "buy in bulk" entry amount be?

--Sean

[Chad U.]

Quote from @Sean Leonard:

Quote from @Chad U.:

In PA, there are no tax liens, only tax upset sales where you take title to the property subject to any existing liens. 

In OH, you need to qualify with the particular county to buy, and most need a minimum purchase amount to buy in bulk.  They don't typically sell one-offs.  

Any Idea what the price range would be for the "minimum purchase amount" and what would the "buy in bulk" entry amount be?

--Sean

No Sorry I have no idea. I would narrow down some counties you are interested in buying in and research their website to see if is mentione. if not call someone in the treasury department and ask

[Sean Leonard]

My research efforts continue...

I was a little disappointed to hear about Ohio requiring large bulk purchases (limiting investment to large companies, not sure if I can qualify or what the qualifications would be) and therefore given my geographic location, this may be difficult... Can try looking into New York Counties. This would also be within driving distance.

Went to Tax Lien Lady website, and much like National Tax Lien Association, these are high-priced educational platforms requiring large financial investments in order to obtain any information (in the $1000's of dollars).

I did find another Guru Ted Thomas. But while the others want big investments, Ted's website does offer some freebies...

https://tedthomas.com/wealth-w...

I signed up for free on his website and was sent and email with Links to an information booklet and a list of auctions being held by county and state across the U.S. 

I'm not endorsing his products, or encouraging anyone to buy anything, just making information available to fellow board members that may be in the same predicament I am (trying to learn about a process that is very complicated; is county and state specific; and information is not readily available on the internet without weeding through scammers, or high-priced gurus... or individually calling each county treasurer's office...

I also came across a website: **********

This is a searchable database/auction platform with both tax liens (under financial instruments) and tax deed auctions, with a calendar of upcoming auctions. You can also set up Assethound (like basset hound) for email alerts of your predetermined search criteria. This is probably old-hat for alot of folks on here, but it's new to me. May not be that helpful for me (not looking to purchase properties, just tax lien certificates. It looks like all the Liens up there currently are junk... and in Arizona...so not real helpful...

--Sean

(anyone else have any resources they've found?)

[Sean Leonard]

Ok posted about Bid Four Assets above and it was starred out. Is this a scam website? Why does it keep getting starred out, Is it "The Website That Shall Not Be Named"?

--Sean

[William P.]

Quote from @Sean Leonard:

Ok posted about Bid Four Assets above and it was starred out. Is this a scam website? Why does it keep getting starred out, Is it "The Website That Shall Not Be Named"?

--Sean

 Hey Sean!

Any updates on your progress? I am finding myself in a similarity curiosity situation. Attending a 90 minute talk about tax lien codes before hitting the paywall. Thanks!

[Melissa S.]

I've just started purchasing tax liens so I may not be the best resource. But I would recommend the book Profit by Investing in Real Estate Tax Liens by Larry B. Loftis, Esq. His book provides the knowledge you've likely already obtained, but also includes a state by state break down of if they are Lien/Deed/Hybrid states, applicable interest rates, bid method, information on redemption periods and references the states' statutes so you have a reference to keep yourself out of hot water. IMO I think you need a physical book so you can earmark this stuff. The youtube channel Tax Sale Secrets seems to have a lot of really good information. They do offer a mentor and coaching program but there's no obligation to buy! For websites to purchase, I've used lienhub.com, realauction.com, and recently govease.com. 

Happy hunting!