Due Diligence Question
I am looking to buy my first liens. While doing research from a NJ list, bells started going off in my head. On one block, there are 4 SRF which owe taxes. Strange. A "neighbor " search shows 5 houses on the next block owned by the IRS and one owned by the DEP. A different part of town has 3 houses on one block owing taxes, but no IRS,DEP problems. I'm thinking I should avoid this area. Any ideas?
zhongyi--(NJ)-----------------
Well, it sounds like that first area you mention is the pits. The second? Hard to know. You probably better get out and drive around and see the properties that secure the liens you are considering.
You should do this anyway, regardless of what you find out about the other properties in the neighborhood.
It makes sense, wen you are starting out, to be very cautious and not buy liens on properties in areas you do not like. Later on, when you know more you may still hold to that rule. Or perhaps you will come t osome modification of it.
Good Investing-**********Ron Starr************.
If you've never attended a NJ muni tax lien auction... or haven't attened one in a while, I suggest that you do so before you spend a lot of time and energy on due diligence.
Also in NJ always watch for environmental issues. The state had some very lax environmental standards and this has created some additional risk of contamination.
Subdivision properties are a good choice because you can minimize environmental risk. Again: Always go look at the property!
[addsig]