How my Tax Lien made 84.43% ROI in 11 months

[John Underwood]

I bought a tax lien against a lot at the local tax sale last year.

It had a 22k FMV. I talked to the previous owner after sending them a letter and found out they were not planning to redeem the property. I didn't really want the lot as I prefer houses that I can quickly rent out after the deed shows up in the mail.

11 months had passed and in 30 days or so I would end up owning this lot.

So I advertised on CL and on the local Real Estate Club Yahoo Group email.

I offered to sell the lien on the property since I did not own the property itself yet.

I had less than 3k in the property and sold the lien for 5k. There were no closing costs, lawyer fees or even recording fees as the Tax office just reassigned my Tax lien to the person who bought the lien from me.

Not a bad return on my money!

The person buying the property from me plans to do a Quiet Title Action and sell the property on MLS.

John Underwood

[Darron Stewart]

@Ned Carey @John Underwood

We have seen large institutional investors too, making BIG rookie mistakes.  I went to the tax office and asked who could answer a few questions, within a few minutes I was able to do the research and try it out.  Started small and learned more each year, now up to hundreds of properties being purchased and just under 50 maturing each year...best to you.  Just an fyi, late night info commercial inspired me to pursue but educating myself was the key!