New Investor

[Matthew Smith]

Hey Ya'll, New investor here. Saving capital for my first rental. I wanted to ratchet things up a bit and earn some money using tax liens. I have the benefit of living on the border of NE/IA, hooray two sales! What are the major things to watch out for? The way I see it you can go wrong two ways. 1. Acquire a lien on a dud. That could be an undevelopable property/condemned/0 value. 2. Risk too much money on one property. If the lien > 10% property value, stay away. NE/IA both use the random draw process with no bidding down interest rate. NE is 14% per year, while IA is 24%. Nebraska needs 3 years of non-payment for foreclosure, IA 2. Worst case scenario, don't get paid for 3 years and have to spend some money to foreclose. How can I lose? Matt