Tax Lien Questions

[Andrew Horowitz]

Good morning, I'm new to real estate investing and BP. Currently I've been reading, listening, and learning. My path has lead me to tax liens. I had a few questions I was hoping someone may have the answers to. 1. Are tax liens bought by auction only? For example if the back taxes are $2500 what's the opening bid? 2. How long could you hold a tax lien certificate for before the tax lien holder receives the property? I'd like to do this online and would love to chat with anyone who is already doing it or just starting out like me. I'm at the point where I have to say enough is enough, stop procrastinating and start doing. I appreciate everyone reading this. I know your time is precious.

[Jarred DeArmas]

Hey @Andrew Horowitz I FEEL THE SAME WAY!! I just recently stumbled into tax liens as well, but California is a tax deed state. From what I've read, you buy the liens at auction and you don't bid up the price of the lean, rather you bid down the interest you're willing to receive on the delinquent payments. So if taxes were $2500 with 20% interest, I may bid $2500 at 20% and you may bid $2500 at 15% and if no one bids lower than you, you would win the lien. 

Each state has their Right of Redemption period, so you can't touch the house until the county actually enters judgement of foreclosure. Some states its 2 years, some its 5. I think you also have to renew your interest in the lien each year, meaning someone can buy it out from you if you don't keep it current.

check out the BP Podcast #56 there is a lot of info on Tax Liens in there.

Hope this helps man, Im just regurgitating what I've kind of picked up, so sorry if Im incorrect!!