Need Help, Anyone With EXPERIENCE
Hey guys just checked over this site and am really excited and curious, hopefully you can help out??!!
1. I am 19 and live in Califronia, I was wondering since I would like to purchase some tax leins, and do not want to get involved with auctions, what the best way to start buying is and where?
2. Should I buy properties in my county or near me so I can look at them myself? or should I buy outside of my state? does it even matter?
3. How do I research my properties?
4. The best way seems to be buying properties from states with short redemption periods right?
5. How is the interest accumulated? monthly, yearly, daily?
6. Since I'm only 19 should I be aware of anything unusual, or go about investing differently than say a 40 year old? thanks guys
7. I figure I have over 3,00 to invest, is that enough? I do not expect huge gains, just reliable smaller gains, and a shot for acquiring the property after the reemption period is up.
Atticus------------------
You ask a lot of questions for a young Californian.
1--You need to study the different states that have tax liens. The nearest states to you are AZ and CO.
2--You won't be able to buy properties with tax liens in CA, as there are no tax liens in CA. You'll probably find so many people going to SO CA tax sales that you will not be able to buy anything at a bargain price.
3--You get the property list, go in the assessor's office and check assessed value, improvements or no (usually no), map for size and location. Then drive by the ones in which you are interested. After a number of trips in a county you will get to know what the neighborhoods are like and the terrain.
4--Hard to say. Are you after the investment return or trying to get the properties? If the former, the longer the period of redemption the longer the average hold will be. In interest states this is good. In penalty states this is bad. If you are going for properties, shorter is generally good. However, don't expect to get very many good properties on tax sales. Not too many houses or large nice tracts of land.
5--each state has different rules. Typically the amount of interest jumps up at the beginning of the month. In OK, in contrast, the calculation is between the date you got the lien and the date of payoff. In some states there is no interest, it is a penalty return. You need to study individual states.
6--Not that I can think of. Except some feeble attempts at jokes having to do with sexual appeal to women.
7--It is enough. You can buy several liens, perhaps in one county, perhaps in different counties This provides diversification. Because going to sales requires travel and expense, buying all at one sale is probably better when you are starting. You can probably sleep everyother night in your car, cutting down the cost of motels. You can buy food at grocery stores and save on restaurant costs.
Good Investing*************Ron Starr**************