Tax deed

[Lane Facer]

I have purchased 2 tax deeds earning 18%. Would it be a smart decision to hold for awhile or start the foreclosure process?

[Rick H.]

Is this typical, that someone buys a tax lien without an exit plan?

Asking others what your plan should be seems peculiar, since we don't know your objective, nor has anyone posted this query yet.

Tax liens produce no cash flow unless and until redeemed or asset forfeited, title perfected and sold at a profit. If you are an estate builder, consider ways to parlay your investment by creative means such as trading your lien for real estate equity or a note secured by trust deed or mortgage.

@Lane Facer You also don't state whether this lien is in secured properrty or what the other encumbrances are, if any. There could be a few plays there. 

Getting credit card rate interest returns on a well secured investment is attractive, however most of us would orefer to receive the cashflow. Maybe you'll connect with a few local CT investors who'd relish adding your lien to their portfolio and you could re-invest the proceeds into something that makes better sense for your long term objectives.