Purchase Tax Lies - Posted by Peter Holbrook

Posted by dave on January 13, 2011 at 05:19:26:

if interest is what u seek call me ill pay ya 18% LOL just kidding. Really though focus on quality properties that you know owners will eventually redeem there properties. Do research since some states pay much more then others. I hear that some Texas counties pay up to 48% depending on the time it takes the owner to pay back there taxes or redeem there property. I always stay away from anything with an irs lien or united states gov lien. IRS will bump all other liens in most cases. Also the tax liens are not always in front of bank leins so study the law in that state!

Purchase Tax Lies - Posted by Peter Holbrook

Posted by Peter Holbrook on January 06, 2011 at 12:32:40:

I am interested in finding information on purchaseing tax liens.

Purchase Tax Liens - Posted by Bill H

Posted by Bill H on January 07, 2011 at 16:36:57:

Been doing this for lots of years. Personally I would go to my local courthouse law library and ask the librarian to assist. Get all the statutes on tax liens and make copies and take them home and read them at least three times. LEARN what you are doing…LONG BEFORE …you attempt to do it.

If you are looking to get property there are better ways. If you are looking for interest and penalties this is the right place.

Last year one county that I invest in had 12,992 parcels that they sold. The bidding can be FIERCE! You do not get any return on overbid or excess.

Most property that you get is up for tax ssle for a reason…it is not worth more than the taxes.

On rare occasions you will pick up something that is worth proceeding with.

I got a house this year that was destroyed by Hurricane Katrina and am now in the process of clearing title and getting ready to rehab it.

In order to get clean clear title you will have to file a quiet title action in your local jurisdiction. This can cost from $1,500 UP, UP, UP depending on what happens.

The most common defense is “I was not properly notified.” The courts will lean their way in about 80-90 percent of the time and you will wind up with only the interest and penalties.

It is an interesting business, unlike any other part of the real estate industry. The books and tapes that I have looked at all present the Highly UNLIKELY situation in which you will get a mansion for pennies. The real truth is far, far from this…BUT… that would not sell books and tapes.

I know some,like the other poster here, who research a few parcels and sit through the entire week or so waiting on them only to lose out to the high income high bid financial institutions that are at every sale.

Google “Jones vs Flowers” SCOTUS and you will see what I am talking about.

Very interesting case that went all the way to the SCOTUS…and the tax lien investor…LOST…even though everybody else up the chain of courts said he had won.

“DUE PROCESS” is a MOST interesting part of our legal system.

Good Luck,
Bill H

Re: Purchase Tax Lies - Posted by dave

Posted by dave on January 07, 2011 at 03:02:01:

I have done this on the side from my other real estate ventures for about 8 years now. Read Larry Loftis he has a good book on the Matter. He is an attorney by trade so can lead you through the details many other books on the matter might not. I have enjoyed buying land lots and junker homes and then selling them after wards. A lot of states and counties have many different formats for selling property or ect. I do about 20 deals a year and put up less then 5k for my deals. If you want higher quality properties that can also be accomplished with more money. The waiting period to get a good deed is anywhere from 3 months to 3 years. It depends what state your in. After reading his book then buy a course on the matter but the best thing to do is learn how to do a title search. Or partner with a local title search person that works at a title company that wants to make extra money on the side. Or hire one part time to do your search’s. The key to this business is details the devil is in the details since missing something on the title work can kill a deal. Hope you have the same luck I do.

Re: Purchase Tax Lies - Posted by Peter Holbrook

Posted by Peter Holbrook on January 09, 2011 at 06:45:15:

Thank you for your input. It was very helpful. However, I am not necessarliy interested in obtaining the actual property…if it turns out that it is a good piece thats fine. I am more interested in the interest rate and return on investment as a suppliment to flipping and rehabing. As I understand it if you do not want to keep the property after the tax year you can let it go back to the state or county. I would prefer to keep rolling the return(s) into more liens, which may result in better properties. Am I wrong?