What states do you buy Online Tax Liens and why?

[Jon B]

I'm interested in tax lien investing but I would rather buy them online that have to go out of town to auctions. What states do you choose to purchase in and why? Thanks

Jon

[Jerry K.]

@Jon B I buy online tax liens in Arizona and look at other states (Florida, Colorado, Indiana, others) that are online. 

I purchase in Arizona because:

• I know the areas I invest in. I get there every 12-18 months and plan on retiring there.

• I have studied the statutes of Arizona for tax liens and tax lien foreclosures. (Still always learning)
• The top rates are 16%. That said, you rarely get a lien with a building on it for a 16% rate. You get vacant parcels for higher rates (see my posts in this forum about tax lien results from Yavapai, Coconino and Pinal counties)
• Arizona has a 3 year redemption period for the owner. That is a longer than many other states, but you can find liens that are for multiple years, so you are that much closer to the foreclosure date (if that is your end game plan).

There are many reasons/strategies to purchase liens - and to purchase in different states and counties. 

Online auctions make it easy for investors to participate - so that invites more competition than live auctions. The harder it is to participate the better the deals you can get, so don't rule out live, in-person auctions.