Hi Velda, welcome to Active Rain!!   congrats on breaking out into the bogging world!! I hope to see more of you around here..  To answer one of your questions, I do know of a guy who did lots of tax lien work years ago. I used to drive 12 hour days to view all the properties, photograph some and detail the neighborhoods.   I just spoke with him yesterday and asked him about the tax liens, and he said that now things are much more difficult, with a lot more players. People are taking them at 0% and just banking on appreciation while they hold them.  He was a national player and he said that he would see the same people across the country and that people would play nice.. allowing others to bid and share in the inventory. Now I hear that its getting worse, hence people taking them at 0%..  I'm not saying this to bring you down, but to put you on alert. Due your diligence and keep looking for someone with experience. best of luck to you.. hope you make it BIG!

see you around! :))

Thanks for the insight, Nick.  Sounds like tax liens are in the same position as the rest of our real estate business.

Velda,

Thanks for the post. Good to see your on your second one. I have not had any experience with tax liens, but I'll be watching your blog post to learn more.

There's some good books on Amazon on investing in foreclosures and tax liens. The main thing to remember is that there is a redemption period and they need to do their due diligence to make sure the property is worth what they're paying. There aren't many opportunities here since we are in a sellers market and everyone wants tax foreclosures. Our state doesn't do the certificates. The homes are sold at the courthouse and our process is not the same.

I'm not surprised to hear how much competition there is for tax lien certificates.  It's difficult to find information on auction dates, the debt amount and properties.  It's a closely guarded secret. 

Sharon, you are wrong that it is a closely guarded secret.  There's a web site called investingwithoutlosing.com that tells you pretty much all of the online auctions.

In tax liens, I was failing to get a return.  I realized I wasn't doing it right --- why were Wachovia, Bank of America, and other banks still in it if they weren't making any money?  In the end, I actually bought a book called Complete Guide to Real Estate Tax Liens and Foreclosure Deeds [ISBN: 0978834682].  I figured out what to bid on and how to research properties -- that's what made the difference, knowing which ones will have a return based on their mortgage rather than paying for ditches.

In short, there are really only three reasons why you're failing...

1. You don't know what you're doing.

2. You don't have enough capital.

3. A combination of both. 

John, I appreciate your input.  And I will definitely check out the book and website that you recommended.  Capital is not an problem at all.  But information and education definitely is.  I find that the books I have consulted so far have had a great deal of basic information about how to use tax liens to make money. 

But where I have trouble is learnig about the houses for auction in my local counties.  The lists are burried in the county websites and change frequently without being updated.  When I first began investing in foreclosures I found the same obstacles.  The information is all there, I just had to dig until I figured it all out. 

There are many ways to invest in real estaet, with or without holding property Good luck Velda, I do noot know much about this other than it can be lucrative.

Good luck and welkcome to The Rain.

John,

Thank you so much for your suggested reading.  I brought the book home today and have been taking notes and talking to my partner ever sense. 

Sharon

Keep us updated on what you find. We don't really do tax liens in Texas. We buy the house at the courthouse and they have the right of redemption.

after viewing above statements i am coming to the conclusion that my question might not have a answer  that will serve my purpose, but here goes.  I am interested  in the  purchase of tax lien certificates but have  no  way

of performing due diligence. I am bound to my computer and don't have the ability to travel.

The tax lien certificates is something that I am looking to get into.  I am trying to get a tax lien agent who can do the bidding and the research for property that is not necessarily in the vicinity of where I live.  If anyone know of a company that I can contact please let me know

Aloha,

I am working as a tax sale agent/coordinator on the island of Hawaii (the "Big Island") on an upcoming tax sale.  I am working with private individuals and creating partnerships where each partner is making a minimal investment (at leat $2k) and will be listed as a partner on the purchased property with ownership percentage equivalent to his/her investment. 

If you're interested, I am doing all the leg work, research, and aution logistics.  Investing partners will have live access to auction via conference call and text messaging.  

For additional immediate information, contact roland@hawaiitaxsale.com or call (808) 551-1005.

Roland,

have you made any money? i always like to see the results.... curious...

sean safholm

www.youronlylender.com

Hello, you can read the first chapter from my ebook free of charge at www.taxlienresearch.com - this should answer most of the questions you have. Good luck!

tell me is a good bussinees tax lien call me for taking 2087883198 thanks

John's recommendation on Complete Guide to Real Estate Tax Liens and Foreclosure Deeds: Learn in 7 Days [ISBN 0978834682] by Don Sausa hit right on the nail.  The book is probably the best one I have read so far in getting into tax liens. Thanks John and thanks for this blog post.

Velda, check out this book: "Profit by Investing in Real Estate Tax Liens" by Larry B. Loftis, Esq.

Investing here in Texas Tax deeds is good as long as you do your due diligence.  You can get a 25% ROI a year for up to two years if the original homeowner decides to get it back.   

Whatever you do, do not trust this guy: roland@hawaiitaxsale.com (808) 551-1005

I trusted this guy and he ripped me off!

You have been warned!

Hi

Check out this book on Tax Lien$ by Michael Pellegrino, Esq. he is a practicing attorney in NJ that specialises in Tax Lien its a Very Good Start, I'm getting ready to start a tax lien meetup group in Queens NY, You might like to start a Meetup group in your area goto Meetup.com and form your own group. Good Luck

Ms. Brown,

If you are really interested in investing in Tax Liens, please take a look at REO-America, INC.  They are a servicing company that specializes in the tax lien industry.  They handle everything from the research to acquition to the liquidation of assets.  Visit their website www.reo-america.com. 

I heard of a Tax Lien Agent named Don Pullman, website is platinuminvestmentproperties.com .

He acts as your agent to find what he calls Investment grade tax liens, but he also has a fee for acting as your agent. I heard about him from a podcast on jasonhartmen.com

Has anyone used Don Pullman for Tax lien investing ?

 There is Business Week article on his website on Tax Lien investing.

 Thanks,

Al   M.

Tax Lien Agent Don Pullman will RIP you OFF.   HE IS NOT TO BE TRUSTED and Platinum has taken lots of investors money.  DO NOT GIVE ANY MONEY TO platinuminvestmentproperties.com

My understanding is that tax lien certificates are a fantastic investment opportunity!  I have had one local agent who specializes in training, short sales and this kind of investment on our radio show a couple of times and it is pretty simple to understand and make money at it.

Thanks PAW for telling about Tax Lien Agent Don Pullman. velda well done....your fisrt post is very good.. thankyou so much. I am waiting for the next one now.

I have searched hundreds of sites for information.  Most appear to be cons, others questionable.

I finially found a place that I can trust.  Thank you all for your information and your graciousness.  It is refreshing!

I have found a tax certificate that matures later in 2008.  I have performed my due diligence and an investment management firm has the tax certificate.  Can this tax certificate be purchased from the investment firm??

The best website I have found for notification of tax sales is www.taxsalelists.com they send a weekly update so you don't have to dig through all of the county websites.  Here in Kansas we are deed state not tax lien.  I have attended Colorado sales in person and online.  I have worked with several investors that buy tax liens in very speficic areas and do very well.  They state and I agree that you must focus on one area to do well.  The Rogue Investor book was good information but I think you can get almost as much free information online as long as you focus on the county you are targeting.  Best Wishes! 

Velda, you and everyone else should look at the Web site of Americas

Tax Lien Agents, Inc. (ATLA)i.e. www.americastaxlienagents.com as their President, Ned Majors, has been buying Tax Liens for over 19 years and because of the bad real estate economy thinks his clients will receive more property for the price of the tax lien.  Ned's August sale will pay 18% or 1.5% per month interest if redeemed or you'll own the property after just 24 months (you must pay ATLA a 35% commission of the sale price)  But they do the expensive travel and they look at the property and then bid in you name with your money which is always made payable to "County Treasurer for Tax Liens as ATLA never touches your investment money!!!

If fact if you'r going to be in the Atlanta, Georgia area Saturday, August 2, 2008, Ned is giving a seminar at the Crowne Plaza Perimeter Hotel at Powers Ferry Road and I-285 which is on the north side of Atlanta.  Seminars are at 10AM and 2 PM  -- TELL YOUR FRIENDS.   Hope to wsee you there, Ned majors

Greetings all, was hoping to pose a question to get your feelings on the matter.

With record foreclosures, and the govt in the spotlight needing to appear as if they are doing everything they can to help Joe six pack from getting foreclosed on, how do you forsee this effecting ones ability to obtain a foreclosure on a tax lien? Does it not require a Judges order granting the same?

What is to prevent the govt from forgiving the delinquent tax, thereby sticking the lien investor out in the cold? (If you say they are contractually obligated, you should note that in times of percieved financial distress the govt has routinely broken it's agreements, and there are a lot more property tax payers than there are tax lien purchasers so which side of the fence do you think a vote seeking politician would fall on?)

With Fannie & Freddie on the road to being taken out of the semi private sector and being centralized, with the govt now having a publicly stated "vested interest" therein, will this not spill over as if it were an FDIC controlled mortgage where the tax lien is not necessarily superior to the mortgage lien which  prevents the mortgage from being cleared off the title through foreclosure?

I guess in short, what I'm asking here is does it make sense to anyone that the government will allow you to take $100,000 property away from them (by foreclosing on a property which has a Freddie Mac or Fannie Mae mortgage, of which more than 70% of newer mortgages are according to Bloomberg) because of a $1,000 or less "lien" against that property which they were the ones who sold you in the first place?

Think about it, the bill currently already past the House, and expected to clear the Senate stipulates that "The Treasury secretary would get power to make unlimited equity purchases in, and lend to Fannie Mae and Freddie Mac 

So if you buy a lien today, and it's redeemption date is 2 yrs down the road, how different is the environment going to look surrounding your/our ability to enforce the collection of that debt?

Just food for thought. All responses are appreciated.

Tax liens are great investments that pay high interest. It's a great way to own a home without paying for it but you do have to wait it out. If you don't get the home, at least you get the 18-24% interest. Good thought above, Greg.  I'll have to read more about that.

Diane Concialdi

Thanks for the information on the book, I'll be off to get my copy as am getting increasing requests about tax liens and feel somewhat stupid that I know very little.

Hi,

I went to a seminar this weekend on tax lien cert.  I want to learn more about them but I dont know were to start. Does anyone know where I can start? I live in NYC.

Any advice would be apprciated

Regards,

Ms. Funderburk  

Greg you gave me something to think about.  And to your point, we will not know how this government backed mortgage situation will impact the lien market.  Two thoughts.  1. The opportunity to earn the interest rate will probable continue to exist and 2. I always discounted the possibility of getting a property that had a mortgage becuase I figure the bank would pay the taxes to keep it from foreclosure.  The opportunity to get a property via Tax Lien would be those cases where the property does not have a mortgage and the owner has past or can not control the property.  Net Net, the opportunity for investing I think still exist.

Having said the above, I'm new into this business.  I attended and purchased by first tax lien this past Sept.  I'm waiting to see how long the process takes from start to finish so I can calculate the true interest rate that I earned.  

Ms. Funderburk,

I found this site that helped me confirm some of the things I already knew.

http://www.appraisercentral.com/TaxLiens.pdf