Wassup with Tax Liens? Good cash, or is it slow and steady wins....

[Miles Presha]

Been researching this, too.  I see different states have tax lien laws regarding redemption.  Is this something I can invest in - like Texas or Florida and get properties because of short redemption periods?  How much would I need, and how long before I can get title?

And can I bid virtually on taxes in other states?  Sorry for all the questions.  I love this stuff...

[Tom Yung]

Originally posted by @Miles Presha:

Thanks, Ned.  I'm not totally opposed to the interest to be gained, but it would seem there's more profit in acquiring the property and then selling it.  Does it always take a year to foreclose? Is it possible to bid on properties at the end of their redemption period or is that more expensive?

One last thing is there an average foreclosure cost to gain full title?

As @Ned Carey  Carey had suggested , investing in tax lien/deed is state specific & also depends entirely on your decision(interest or property). your decision will change your course of bidding at what criteria & which state.

Half of the states are lien states & the other half deed states. with around 6 of them being hybrid, redeemable deed state, meaning they have a redemption period. As @Karl James stated TX being one. 

In TX, instead of interest, they have penalty of  25% for the first year.

In the last 2 year or so, most tax deed properties has been bid up close to retail. A lot of these tax deed properties had been neglected for years. So in a lot of cases. I will run with 25% penalty anytime than owing the property. 

It may be very true in some case it is better to have the property instead of the interest, so you have to figure in rehab, holding cost, legal cost on each bid. Also plan you exit strategy ahead whether to hold or flip.So you know what is the maximum allowable you can bid on them.

Some company & individual sell their lien on the secondary market close to redemption, because the lien owner just want the interest, not the property.

If you read more Ned's post on BP. He is what you described in you post.

Good cash, slow & steady wins. Check out his site under his signature.

Also @Jerry K. post on AZ tax lien sale. AZ has their every February. Jerry provide very detail breakdown on each category of properties, a must to read for AZ lien bidders.

FL lien usually get bid down to .25%, they do have a minimum of 5% if the owner redeems. It is coming up in May.

Quiet title & barment cost around $4300 in GA.