New Tax Lien Investor Wants Help
I have recently learned about tax liens and have done a little research on them. I have a couple questions to start. Can anyone tell me what a good county to invest in is, and how to get a hold of them? What is their redemption period and percentage rate? Do they wipe out other liens if the property is acquired? And anything else I need to know?
Also, I am currently located in Idaho. My county does not do tax liens. Does anyone know if there are any counties in Idaho that do? Please share if you have any experience.
Thanks.
ziggies--(ID)---------
Idaho is a tax deed state, so no counties sell liens.
Every state has different laws about the collection of the delinquent taxes, so most of your questions cannot be answered unless you specify a state.
I'd suggest that you study the laws related to collection of delinquent property taxes in any state in which you plan to invest. I'd also suggest that you call up each county's tax collector or treasurer and ask what the recent tax sales have been like in their counties, so that you can figure out some to attend and some to ignore.
Understand, too, that these days the tax liens and tax sales are being inundated with investors and would-be investors, so it may be hard to find a good county in which to invest.
For the most comprehensive information on tax sales, I recommend my friend John Beck's "Free and Clear" program which is only $50 from his www.johnbeck.net website. It covers all states, territories, possessions, D.C., Canadian Provinces.
Good Investing******Ron Starr**********
You should consider buying or controlling the property prior to the tax deed sale. This is the period that gives you the most leverage with the tax delinquent.
There are many states that are great to work in, however there in no reason to work away from Idaho. Establish a good relationship with your counties tax commissioner and his clerks. Ask questions about the process in Idaho. Understand that, in my opinion, you should not really be interested in purchasing tax liens nor desirous of purchasing at tax deed auctions. You want to control / purchase prior to the sales.
If either a tax lien sale or a tax deed sale is approaching, you can get the lists of delinquent taxpayers, contact them and speak to their ability to pay the outstanding taxes. If they cannot pay then you may decide to purchase the property, if you can negotiate a great deal; or your may get an option to purchase at something close to a good price. Then you will have a reasonable time to sell the property for a profit. The further back in time from the auction, the longer you will have to sell the property.
Best of luck,
Mitchell Goldstein
[ Edited by joel on Date 01/21/2004 ]
Thank you both for your info. This gives me a lot to think about. I will continue to press on and figure this out and try to find what works best in my area.