How saturated is the tax lien investing?

Question

Ive done some research and reading on tax lien certificate and deed investing, and alot of the stats and books are typically pre 2010. Are double digit returns obtainable still? What states are ideal?

Jason Curtis · Answer

The first tax lien I ever purchased was directly from the county for $750. Interestingly enough, I purchased it after the annual tax lien auction as not all liens are sold at the auction itself. You can get the list to see what each county has left on their books and buy them outright. Some lists are free and others I’ve had to pay $50 to the county assessors office. I foreclosed on the first tax lien I purchased after approx 90 days as it was ripe for that action. I retained a real estate attorney and followed the laws carefully. After that, I owned a house that appraised for $125k that a former coworker now owns and resides in.

Just make sure you know your state tax lien statutes well, do your due diligence carefully on each and every property and be prepared to go to battle with banks, hedge funds, (as @Chris Seveney stated) and other large entities at the auctions. However, even 10% is a nice return on a fairly low capital investment with the chance of owning the property as I did.

Best of luck to you!

Chad McIver · Answer

ok, thanks john, in missouri the max is 10%, not real attractive.

John Underwood · Answer

SC, GA, TX I know to be good states. It has gotten very competitive in my market. Yes double digit returns are attainable just on interest. When you get a house for pennies on the dollar then your returns go through the roof.

How saturated is the tax lien investing?

How saturated is the tax lien investing?

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