How To Pick Areas For Best Tax Lien Opportunities?
I've just recently found this site and have been reading feverishly and absorbing the information as quickly as I can! My first objective was to look at what types of REI might be most profitable for me to begin my career and as someone who loves research far more than negotiation I belive I've gotten to the right forum. But enough about me ... onto the question.
I live in a major metro area of Texas (D/FW) and from my reading I understand that I will have much better luck going to a less populated county in Texas instead of trying to compete against the big guns coming to the city auctions. How do you more experienced tax lien buyers get your research done in counties that may not be close to home? I realize there is a great deal of information that can be gotten online before going to the county but how far outside a metro area is far enough? And finally, how do you get to see the properties for that necessary step of verifying that the property is worthwhile?
Thanks for all the help you can offer and for all the great information (and questions) that I've already gotten to read up on!
Rule number one. Do not compete with a more powerful force then what you command.
Do not attend sales that the rich and famous attend. Launch your attack before the sale that they are going to attend. Therefore, no conflict and you have gained the property before them. Ergo the sale is never held and you walk with the property or a profit.
What you do is run on the first sign of a problem. The beginning of a foreclosure. If you can get really good at it and pick up the information even prior to the filing of an action in foreclosure all the better. How to do this? Go talk to the banks and organizations that service loans in your area. Through personal relationships you can obtain such information. If your field is Real Estate, then move in the circles of those who are so involved. Loan Service Personal. Loss Mitigators. Real Estate Owned Officers and workers at the banks and other lenders. Join the network of those who labor in and among large sums, but alas never have any such sums themselves. Bank employees. Well dressed, under paid. Buy drinks, lunch, help with transportation, etc. etc. enlarge your friendship among the labors in the field of finance. It really pays off.
Do you know who used to be my best source of information re: Real Estate Needs? Bartenders. I laid $20 tips on them and my card. Plus the promise of future sums upon establishment of a client relationship. Worked well.
Cheers Friendly Lucius. the bankers friend. 8-)
Thanks for the feedback!
Where can I find list of tax cetificates outstanding? I have looked everywhere for lists, however I have not been able to find any. I am looking for lists for major metropolitan areas with high value.
Please advise.
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Thomas Franklin Hill --(NY)-------------------
I don't like what I see here. In my opinion you need to study the state statutes related to the collection of delinquent property taxes and tax liens and tax deeds in every state in which you plan to invest.
I suggest you concentrate on a few states at first. Maybe three or four. You might do some preliminary research on a bunch of others so you can pick the states who system you like best.
Then call the approapriate governmental offices that handles tax lien sales in those states. Ask them when they will have their next tax lien sale. You can also get a calendar of some sales at www.taxlienlists.com which is a site that resells lists that they get from the taxing entities.
Good Investing*******Ron Starr***********
I also don't like the direction I was seeing suggested here earlier.
For a different perspective:
Decide on if you want to focus on tax liens or tax deeds. They are very different (but realted) animals.
Once you have decided on your investment objectives (liens or deeds) then look for areas that are close to where you live (or want to live) that are not "over-attended". I cannot tell you where those are because they vary. One might be a county adjacent to a metro area, or it could be in a rural location. Once of the ways to find out is to talk to the county tax authorities and see how helpful they are for a "newbie". Ask their advice -- if they are willing to help you have probably found a good location.
Then see when they have auctions/sales. Find out the processes. Make sure you know the laws in the area you are looking to invest in.
As far as buying products to help = OK, but for me it is not about what process they recommend or sell, but what results do they actually deliver. To find that out you need to ask questions of real people (not paid references or friends) who have had both success and failure using the product. If you only hear of success, don't believe it, ask for info from people who had challenges/failues and ask why.
Let us know how your RE adventures go.
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