Tax Liens versus Tax Deeds Acquired at a Tax Sale Auction or a Government Property Auction

http://www.TaxSaleLists.com

An analysis of the benefit of buying tax liens versus tax deeds at a tax sale auction. Both types of tax sales occur. We have tax lien sales of tax delinquent property and we have tax deed sales of tax delinquent property.

The purpose of this video is to determine the profit/loss potential of either investment and the return on investment (ROI) of each type of acquisition from a government property sale.

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[justperk2]

Is like to subscribe to more videos that relate to this topic

[lonewolfmilitia]

I sometimes buy unseen, as I know how to understand decriptions and use sat. I was a FO in war so I always know where I am so I can find vacant land out in nowhere. Once I was looking for a prop I bought in big bear and a contruction trailer was on it. Tennis camp was going up all arond it. I sold it to that builder contractor right there, on a match book. Only paper we had. Another time a fat cat tried to hustle me. I went liberal on him and threatened a flora and fuana union. Bought it cash

[lonewolfmilitia]

I do not like the drama of tax liens, attorneys, court, costs. It seems the good properties always settle the lien or you get stuck with the dogs you can't give away. Who pays 90% at a tax deed sale? Do your homework. You should be paying pennies on the dollar and for better quality properties that you totally own like NOW and you control the horizonal and the vertical. You can then be the seller, the bank, the escrow, the recorder and collect a quick increase or interest and increase over time.

[lonewolfmilitia]

My first Tax Deed 2003 cost $500 (vacant land) and I sold it the next year for $7550 cash. Then when the RE market tanked and investment rates dropped I sold low, no down on a Land Contract, so no foreclosing costs, contract terminates 30 day late, 7 day late, late fee, they pay taxes and I got 9% now 7%. Nice to have the income monthly. A few went belly up and I resold within a month and no refunds. Chi Ching! I tried to refi but they walked instead.

[JohnSnevets]

@secretoceans It depends on the particular state. You have to find out in the state statutes 2 things:

1. Is this a tax lien state (as opposed to a tax deed state, or some combination thereof)?

2. Is the default rate an INTEREST rate, or a PENALTY rate. An interest rate is generally assumed as yearly, and therefore the rate is divided by month. A penalty rate on the other hand, pays the same rate at day 1 of redemption as day 365 of redemption, & would therefore benefit you by early redemption.

[JohnSnevets]

John, this video was very informative, and cleared up some conflicts in my mind produced by others in the industry that stated as you did, that you'll be lucky to make a big profit from a tax deed auction. Their alternative though, instead of buying tax liens, is to try to get the defaulted homeowner to negotiate a sale with you BEFORE their property goes to deed auction.

[secretoceans]

Please keep the videos coming, great job! Quick question, is the interest on the purchased lien divided by the month or do you get the full interest rate regardless if the homeowner reedems early?

[lynettegranda796]

I'm very interested in this type of investment after I graduate. Thanks for the info