profiting on tax lien sales

[chris246810]

hello i was wondering how or is it easy to profit from buying a home from a tax lien auction and selling it for the assessed vaule? is that true you can sell it for the ssessed vaule of the home is worth and all you do is pay for the back taxs. see i am looking to buy a home at a tax lien auction and sell it for what its worth (that would be the assessed value?right) as quickly as possible. can that be or is that true?
write back
from
chris

[StepUp]

Purchasing tax liens and homes at an auction can be done. There are a lot of details to know and understand before you get to that point. Please, educate yourself first before plowing headfirst into this or any other method of RE investing. There are many books and programs available for tax lien investing. Spend the small amount of money now before you make a very expensive mistake later. Keep us posted on how you're doing and good luck!

Eric

[chris246810]

thank you
right now i am reading Profit by investing in real estate tax liens. its good. do you have any other book choices that i can read? let me know

[StepUp]

You have the one that comes the most recommended. In addition to reading the book, talk to those that are actually doing it. Explore other RE forums that have contributors discussing their experiences. You'll learn so much more by doing it this way, plus face to face with the practioners. Visit your local REI clubs and mingle. You'll find a wealth of info.

Eric

[sue]

I am in the same situation as you Chris, only I have read several books on tax liens. I am a little discouraged when I hear how difficult it is to compete with the institutional investors at the Tax Sales and how difficult it is not to bid on the wrong property. I think I am going to sign up for a class. DOES ANYONE HAVE A RECOMMENDATION for a class teaching this? I am especially interested in those emphasizing Online Auctions and Over the Counter purchases.

Sue

[StepUp]

I don't do tax lien investing, so this is not my expertise. However, my understanding is that there may not be many counties that perform online auctions or over the counter purchases. I would do some research, find states and counties you feel are good for your business model, study up, and jump in. Good luck!

Eric

[Cody]

I don't believe in tax lien. The guy on TV shows it is possible, and indeed, it is.
However, show one person, only one, that is willing to lose a property, any property for the amount of the property tax (most of the time, few hundreds dollars). It just doesn't happen. People are on late payement, yes. But when somebody say:" hey, I'll get your property because you didn't pay the tax of $345", he goes to the city hall and pay.
So, in theory, yes, you can purchase a property for $354 and sell it for FMV of $450,000.
I have never, ever seen that, ever...

[druidithius]

Hey there,

Just some statistics for you.

Between 60-95% of Tax Liens are redeemed by the property owner or the current lien holder. (depending on the state, county, and type of property)

I have been doing incredible in tax liens for a while now.

Think about this:

Buy 100 liens at $200 ea
95 % redeem - 95 properties.
You get your money back plus 14-50% interest.

5% did not redeem - 5 properties.
You make a killing

(statistics are from the enhanced guide at
http://www.taxlienapprentice.com )

Also,

When you get into the topic of TAX DEEDS, you actually buy the title, not the lien.

FYI