Do you plan to participate in any tax sales in 2011?

Question

Hello Biggerpockets I have always been interested in tax sales, I have done some due dilligance and I have the basics down or atleast I hope I do :) . I was trying to find out who plans on participating in any tax sale in 2011 ? For those who don't incorporate tax sales in your business model why do you choose not to ? (To risky, Not your style?) Finally anybody who has invested in tax liens is there anything you may have learned from experience.?

Thanks ,

Adrian Williams

Thanks ,

Adrian Williams

Joe Donohue · Answer

I recommend for all beginners to go to the auctions and simply learn the process first-hand.  
DO NOT buy tax sale lists online.
DO NOT buy "training" programs.

No offense to CI, but the previous posts are annoying.  The fact that he repeatedly posts his links says to me that he makes more of selling "education" than he does in tax sales.

There are probably more of these people selling "education" than there are attending the sales.

~Joe

Cl Jones · Answer

Hi There,

If you want to earn some interest on your money, then buying tax liens are a great way to go.  They are safe, and most people to redeem them.  That's what you want, so you can reinvest your money.  
You can get up to 36% return (Illinois) in tax liens states.

But the real money comes from the tax deed states, like Texas and Georgia, to name a few.  When you deal with tax deed states, you can very well end up owning the property (which is what I like to do)
[SOLICITATION AND LINK REMOVED]

Kyle Meyers · Answer

I bought a couple of tax liens in Indiana last year in October. In Indiana the homeowner has one year from the date of the sale to pay the taxes and interest or the lienholder can forclose. I guess I will see this October if I got something good, can't really tell from the street, but the properties looked decent from what I could tell. I figure I will evaluate the properties after forclosing and see if they are good for flipping or renting out.

Cl Jones · Answer

Adrian,

Even though your county's sale is once a year that doesn't mean that you can't make money now!  I live in CT and I invest in FL (and some other states) from the comfort of my home.

If you add deed investing to your bottom line, you will make out fine.

When I first started, I thought I could only go to auctions once a year.  To be truthful, I have never purchased anything in CT.

Everything I don't is online with mobile notaries, real estate agents and title companies.

They fedex my checks to me.

I hope this is an eye opener for you.    :roll:

If you have internet, a fax machine, a title company, and fedex, you can eat like the Big Dogs!

Adrian Williams · Answer

Thanks for all the information , I have been reading a book called the 16% solution and got some advice from some local investors here in Kansas City they say the hardest part is playing with the "big dogs". I live in Missouri and from what I learned the sale is once a year in mid August and only Missouri residents can bid, I plan to attend this August and see what I can manage to do ! :) @Cl Jones I will check out your site tonight.

Thanks :))

Cl Jones · Answer

Hi Joel,
Great response to the post!

May I add that you can make sooooo much more than 15k in a year in the tax lien/deed arena.  You just have to know how to play the game.   Are you actively investing in liens/deeds??

CL Jones

Joel Owens · Answer

You have to know what you are buying and what the expected returns will be.Usually in my state people pay at the eleventh hour.

So many properties do not get foreclosed on you just make the interest which isn't bad.The question is do you want to lock up all that money for a year or longer for say a 15% return??

If I have 100,000 I can turn that 100,000 into so much more than  115,000 in  a years time.

The other item is in many states where they start the interest rate high and bid it down you will be competing against institutional bidders whop will bid the rates down low.

So tax liens and sales can work and you can even land a property occasionally but along with everything else is not a magic bullet.

Jimmy H. · Answer

I too am interested in tax liens. I have no experience with them but have researched them by reading my states law statutes. You can probably go online and find the chapter of your states' statutes dedicated solely to property tax leins and all the accompanying rules, regulations, and procedures.

I have researched as much as I can online for free, and I started this BP thread: (CI Jones I would love your input here)
http://www.biggerpockets.com/forums/70/topics/56190-preparing-for-tax-lien-sales

At this point my plan is to do my due diligence and try to purchase a few of these this year. I think that the best way to learn is from hands on experience. I started an LLC recently, solely dedicated to hold these liens. I am going to buy a few liens and see how things pan out...by the time the 2012 sales roll around I will be knowledgeable and experienced enough to know if I want to more seriously pursue this as an investment, and would have a much easier time raising money, and be much more certain of the process.

Cl Jones · Answer

Hi Adrian,
I do buy tax liens, deeds, purchase land, and find unclaimed money with excess proceeds.  I have been doing this full time since 2006. [SOLICITATION REMOVED]  You can also visit my website at 
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I look forward to speaking with you
CL

Do you plan to participate in any tax sales in 2011?

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