Quest Property Associates - Tax Lien

[Mark S.]

Does anyone have any experience investing in tax liens through Quest Property Associates? I don't see any forum posts on this company. Apparently you set up an investor account with them and they do all the leg work (for a fee).

[Wayne Brooks]

No way would I ever let someone pick which tax liens I buy, then just send me bill later.  Each state has it's own very complicated procedures, which only if you understand them completely, lead to different strategies, as well as a variety of traps. 

 In Florida for example, you can buy tax certificates, after you bid down the interest rate to say4-6%.  But, if not redeemed within 2 years, you can send it to an auction to hopefully get repaid.  However, many newbies don't realize is that you have to pay off All the other certificate holders to do this.  So, to recoup your original say $1500, you may have to pay off another $6k in certificates.  If no one else bids the minimum $7500 to pay you off, likely because the lot is only worthh $4k, you're stuck with it.  The higher the rate you get here, is likely because the other bidders did their research, and want to avoid the above situation on that particular property.