Tax Lien

[Cory Scribner]

Good Morning everyone

My name is Cory I'm a newbie when it comes to tax liens.  I'm bidding on a tax lien propertie in another state.  When and if i'm the winning bidder I must set on propertie until Apirl 1, 2016 then pay back taxes.  If home owner would like his or her propertie back then must pay investor, myself plus 5% interest.  The propertie as is , is worth over 40k. Is this a good deal. Let me know what you guys think.  

[Ned Carey]

@Cory Scribner Like @John Underwood said, not enough information here. How much are you going to bid? The higher the bid goes the less good of a deal it is. 

You say the property is worth over $40k. Is that the assessed value? The assessed value could be off by 100%. I have seen Properties in my area off by as much as 500% too high. 

Is that the current value? It is the value after repairs, and in good condition? How competitive are auctions in the area you are bidding.

The two most important things to know in the tax lien business are

• The rules and hidden costs. For example; will you have the additional expense of a  foreclosure or quite title action or both?
• The value of what you are bidding on.