Carroll County MD, Tax Lien Redeemed

[Nick Vafa]

Investment Info:

Small multi-family (2-4 units) other investment in Westminster.

Purchase price: $5,637
Cash invested: $5,637
Sale price: $6,000

This property is the 2nd of 3 tax liens I purchased at the Carroll County tax sale held in July 2018. Compared to my other redeemed property this lien took several months longer to be paid back ( 5.5 months), therefore I earned a bigger profit on this lien. The delinquent tax payer redeemed 5.5 months after the tax sale, so I received 6.4% interest on my original investment as the yearly interest rate in Carroll County is 14% .

How did you find this deal and how did you negotiate it?

I found this tax lien opportunity from the Carroll County tax sale website, which provides listings for all properties included in the yearly tax sale. In Carroll County, bidding is done auction by surplus, not interest bid down method. Carroll County holds live auctions only, with no internet or over the phone bidding options.

[Jerry K.]

@Nick Vafa I had good luck with an over the counter tax lien in Pinal county a few years ago. Earned 16% for a few years and almost landed the property via foreclosure. The owner paid it off with about a week before the foreclosure was going to be finished.  I also used Pinal as the basis for a blog post about if over the counter liens are worth the time. That blog post is here - Tax Liens: Over-the-Counter. Junk or Needle in a Haystack?