Posted by Paul_MA on June 03, 2002 at 24:51:30:
Remember one thing: tax liens are typically a “hold” investment. Usually you will earn interest, thats it. Period.
If you want to do the quick flip with tax sale real estate, I suggest you cross the state line into NM. There you will get immediate ownership at a sale.
Tax lien information - Posted by David(AZ)
Posted by David(AZ) on June 01, 2002 at 16:09:45:
Hello,
Just trying to educate myself on tax liens in Arizona.
Now, The Tax lien certificate gives you “lien priority” once you get this Tax Lien cert, Where does the bank come in if they owe moneyon the house or do you just avoid those all together? I’m just trying to get more information on this subject and suggestions on course work or Websites would be helpful (read the john beck Article on the how to’s good info there, just need some clearfication)
Thanks!
David
Re: Tax lien information - Posted by Jack (AZ)
Posted by Jack (AZ) on June 03, 2002 at 12:52:05:
The Arizona School of Real Estate and Business in Scottsdale has a class tonight 6:30 to 9:30 called “How to invest in Property Tax Leins” for $20. On June 28th they have a class “Investing in Foreclosue Properties” for $35, 9am to 1pm .Their website is www.asreb.com. Once you attend one of their lectures, you get a free monthly Journal sent to you which has their class schedule and some good real estate articles.
Re: Tax lien information - Posted by Ben (NJ)
Posted by Ben (NJ) on June 01, 2002 at 16:43:08:
I only buy liens in NJ but Roy Stubblefield at taxsales.com is an expert on the Arizona system. Here in NJ you have to wait two years before you can foreclose, then foreclosure takes at least another year
but you are accruing interest during this period so there is no downside.
Re: Tax lien information - Posted by David(AZ)
Posted by David(AZ) on June 01, 2002 at 16:24:24:
Follow up: Read some articles on AZ government’s website. Seems to be a 3 year waiting term before forclosure can be filed? That seem correct? So, as a beginner invester in Tax liens, I wouldn’t see my first check (in theory) for 3 years? until, I can take Deed of that property? Or are there other things I can do to Spee dup the proccess of the money machine?
Thanks again,
David
Re: Tax lien information - Posted by David(AZ)
Posted by David(AZ) on June 03, 2002 at 18:57:50:
Thank you. I’ll look into it. 
Cheap course.
Re: Tax lien information - Posted by Jenny (NJ)
Posted by Jenny (NJ) on June 04, 2002 at 09:18:23:
Hello Ben,
I have read and enjoyed many of your posts on the board. Would you be able to tell me where I can get more information about purchasing tax lien certificates in New Jersey?
Thank you,
Jenny
Re: Tax lien information - Posted by David(AZ)
Posted by David(AZ) on June 01, 2002 at 16:54:01:
(so everyone can see this conversation and maybe have some input)
-==-
Well, waiting 3-5 years is the downside. It’s an interesting idea of Tax liens and how to get them, But I have bills to pay you know? There is nothing anyone can do to speed up the process or to buy or purchase already waiting tax liens?
I’m just looking for something that can be done in months not in years. I guess maybe I’m to ambitious?
David(AZ)
Re: Tax lien information - Posted by Brad(AZ)
Posted by Brad(AZ) on June 01, 2002 at 16:29:44:
David,
I have also been looking into AZ tax liens. Where in AZ are you. I am in Central Phoenix. Maybe we could get together and buy some courses and put are minds together if the circumstances allow. Hoping to get this money machine rolling myself. E-mail me if your interested. bradboehm@hotmail.com
BRADLEY(AZ)
Re: Tax lien information - Posted by Ronald * Starr(in OK)
Posted by Ronald * Starr(in OK) on June 02, 2002 at 17:15:27:
David–(AZ)----------------
I’m from CA, here in OK for the up-coming county tax resales–where it is possible to get a deed.
I’ve had a little experience with AZ certificates.
I recommend that you buy some of John Beck’s materials on the topic. He has a manual for AZ, costs about $95. Try johnbeck.net for that. He has the “Free and Clear” program which is good nationwide and more recent. Try johnbeck.tv for that–costs about $50, with shipping.
There are a lot of opportunities in tax sale investing. But you need to know what you are doing to do it right. You will find that there are certificates which can buy and start a foreclosure right away. You can buy from the owner’s, pre-foreclosure, as you discussed with Joe Kaiser. You could approach the holders of old certificates who just want the interest rate return, not the property. There are a lot of approaches.
But, recognize that over 90% of the certifates are on vacant lots and land. Not houses.
However, it is possible to get houses, if you work at it. Last year I bought three houses here in OK on the tax resales. I have been to about 20 counties in the past two weeks, looking at the houses scheduled for sale. Some nice ones, mostly old and not so nice ones. I’ll be choosy and bid only on the best, in hopes of making some more buys this year.
Good Investing*Ron Starr
Re: Tax lien information - Posted by David(AZ)
Posted by David(AZ) on June 01, 2002 at 16:36:38:
I live near Bell and 7th st. But, if you read my Follow up. Seems to be a nasty 3 year period of waiting inorder to Forclose on a property. I don’t know if I can wait that long to start making money. Got anything to add? Maybe, I missed somethin gin the translation. I don’t know.
David
Re: Tax lien information - Posted by David(AZ)
Posted by David(AZ) on June 02, 2002 at 20:39:31:
Well, having a full time job helps(barely) in the Dept of not needing to “rush” into anything. So I have time on my hands. I would love to go out and do it in months, but I know that is not really possible with my lack of knowledge in this dept.
But, it all comes with time and help. That is why it is great you all are here. Some of the best information comes from here.
I thank all of you for your feedback.
If you have anything else, please keep it coming. I?m sure I?m asking a lot of questions other people are afraid to ask or just to shy to ask.
David (AZ)
?Indifference: Takes 43 muscles in the face to frown, takes 17 to smile. But, it takes 0 to sit there with a dumb look on your face?
Re: Tax lien information - Posted by JoeKaiser
Posted by JoeKaiser on June 01, 2002 at 16:54:16:
You missed plenty . . .
You’re an investor. That requires that you take the time to investigate the process and detemine the weak links you can exploit. If you’re not interested in simply earning interest, then you need to come up with a better solution.
In my state, the winning bidder gets a deed shortly thereafter. No redemption, no nothing, the sucessful bidder owns the thing. In my state, the date of the sale is the “drop dead” date. Deals only happen as the drop dead date draws near. Remember that.
Arizona is a certificate state. Can you tell me when the drop dead date occurs? There’s where you need to be focused. It ain’t at the auction, btw, and it really isn’t 3 years later (but you’re getting warmer).
The point is, on some particular day the fat lady sings and it’s all over. Figure out that date, get to the homeowner just before, and you can put something together that makes sense.
Joe
exactly, when the fat lady is tuning up (NT) - Posted by David Krulac
Posted by David Krulac on June 01, 2002 at 18:26:42:
`
Re: Tax lien information - Posted by David(AZ)
Posted by David(AZ) on June 01, 2002 at 17:35:59:
Joe,
I?m not going to dispute you on anything you say. I?m just trying to understand the process and to get the best results in the shortest amount of time.
Please look at this website (this is official AZ government website for Maricopa county)
What it may amount to is this. Person is late on taxes for their property. Goes for 6 months. Government says, ?ok, this person needs to pay, we?ll auction his lien to an investor?
Step two: I bid 12 percent (from 16% max) and win the bid. Yippee!
Step three: It?s 2 years 6 month later from the time the taxes were unpaid and I foreclose on the house.
Step four: House is mine after putting proper paper work to the courts. Foreclosure is successful. House is MINE!
Step five: I sell the house for a nice profit. $$$
Putting numbers aside, it?s still at least 2 years? Am I missing something still? The law seems pretty tight on the 3-year thing. If you can do it faster, why does it seem that 3 years is the minimum on a new tax lien in AZ? I mean assuming the property is free of bankruptcy/etc/etc. Free and clear just like we like them.
Also, this is an cut and paste form the website above:
?When a property owner fails to redeem the CP prior to the expiration of three years from the date the parcel was first offered at sale, the investor may apply for a court ordered deed to the property (judicial foreclosure). The Treasurer does not participate in judicial foreclosures. A Treasurer’s Deed may be applied for after five years from the date of sale. The last day to apply for a Treasurer’s Deed is December 31, 2003. After that date all foreclosures must be judicial.?
I?m just a beginner here don?t be too hard on me.
David (AZ)
Re: Tax lien information - Posted by JoeKaiser
Posted by JoeKaiser on June 01, 2002 at 20:45:57:
David,
I’m afraid you missed the point entirely. Think about the big picture.
I am familiar with AZ tax sales. You don’t have to await 3 years or 3 minutes, for that matter. If you think about it, you’d realize the people who’s property went to tax sale 3 years ago are quickly approaching that dreaded drop dead date. You don’t need to go out and buy tax lien certificates today when instead you can go talk to the homeowner who’s weeks away from losing his property because of what happened back at the 1998 tax sale. Were I to work tax sales in AZ, that would be my approach.
The notion that you can in fact buy houses at tax sales for all practical purposes is ludicrous. It happens, but it’s one in a hundred and that one is often bid up to 70% or more anyway. I know they say differently on TV, but as someone who’s been to lots of tax sales, trust me here.
Last year I watched a home go to sale for $100k to a local investor who hadn’t checked things out. Heck, I’d been in the house. It looked nice from the outside, but once inside it quickly became obvious it was a mobile home under all that trim. I often wonder what he thought when the pest report came back with the instruction: remove wheels.
Joe
P.S. I tried to go easy on you.
Re: Tax lien information - Posted by David(AZ)
Posted by David(AZ) on June 02, 2002 at 05:12:05:
Joe,
Only way to get it right is to have it explained properly. I appreciate your bluntness.
So, what your saying is regardless what John Beck says on TV? It?s a 1 in a million shot to get a tax lien sale at a reduced cost? And turn a 300% profit etc? Correct?
In addition, you are just using the Tax sales “drop dead date” in order to work a deal with the seller? Just like Pre-foreclosure in other words?
This is extremely interesting.
Thanks for the information Joe! Keep it coming.
David (AZ)
Or Scenario #2
Step one: Find a Free and clear property with a lien against the house, which is really close to their ?Drop Dead Date?
Step two: Contact homeowner with an offer to keep the Lien from coming to a reality.
Step three: Close deal, say ?YAY!? And collect your deed sell as you see fit.
Little better?
David(AZ)