Question
What determines a good state to buy tax leins in. I live in NC and have heard that its not a good state to buy tax leins in. How do I find oput if NC even has tax auctions? Also, what about SC? I've heard that SC is a good state to buy tax liens in so how do I get started.
Also, can I really start with only a few hundred dollars?
Any help would be great. I would love to start investing in tax leins as its more my style. I just need to know how to get started. I was going to buy John Becks course but I couldn't find enough background info to trust him. Will his system work(if anyone has used his stuff) and did you have to buy more than just his first course or did that tell you what you needed(at least enough to start)
Thanks for your help
DavidV
Contact your department of Revenue. They should have alot of answers.
Hi David!
I think most of the TLC activity is in states that have a short redemption period and pay the most interest. I'm not a TLC pro (only about 3 years) and I've only been active in Louisiana.
I'm not familiar with the course you described. A good overview for me was a book by Moskowitz, "The 16% Solution". It's just an overview and some of the material is out of date; but it will help you get started. It doesn't mention North Carolina but it says South Carolina has a one year redemption peroid and 8% penalty (I don't know if this is still true; I would like to hear from others familiar with SC).
You may want to call someone at the tax assessor's or tax collector's office and ask them about the process and the dates of their auction. I'd like to know what you find out; I have a daughter who lives in SC and I would like to get active there if it's an undivided interest state or a bid down state.
Good luck!
Mike in Louisiana null
At one time SC did pay a straight 8%.
That has changed and is now as follows:
If redeemed in first 3 mos. after tax sale the
rate is 3%.
Redemption in 6 mos. = 6%
" " 9 mos. = 9%
" " 12 mos.= 12%
Hi Bud!
Thanks for the SC information! Does SC have sales once a year? I have also been trying to find out if it is a "bid the interest down" state.
Thanks in advance!
Mike in Louisiana
David...SC tax sales are usually held in Oct.
It is not a bid down state. The interest is
as I indicated in the previous message.
You will find the answers to your questions about SC tax sales by going to the- Code of Laws of SC
website. I believe the section on taxation is Chapter 51 Section 12-51-40. Read Sec.12-51-90
to confirm the redemption interest schedule.
Good luck with your research.
Every county in every state has different rules contact your local county office .They will be glad to help
What do you mean by bid down the interest? Does that effect the purchase amount? Thanks for all your help so far.
David
I do not know alot about this as I am still in the learning mode. Every state does have different rules. Bid down means that the interest rate is bid down. That is the bidders will bid DOWN the interest rate. Maybe it starts at 14% but by the end of the auction some kook has bid the interest rate all the way down to 2%! Why? Maybe he thinks the lien will not be redeemed so he will make is money on the sale. Bidding up refers to bidding up the amount you will pay for the lien. Maybe Joe Blow owes 10K in taxes. However some other kooks involved in the bidding bid 25K for the lien! This happens for various reasons.
It appears to me you want to get involved in states that are bid up. Yes you may end up paying more for each lien but you interest rate will NOT be bid down. If you have a liquidity problem, then maybe this is not the way to go.
A few decent states are SC, IND, and AZ. There are a couple more that come to mind.