Tax Lien Agents
Hi Everyone
Did some research on tax lien agents. Came up with The Lennox Group. There in business for about 3 years and have a good record with the BBB. However, they want 50k for minimum start up but will take 25k, either way a lot of money to invest. Has anyone used tax lien agents, and if so have they done well with them.
Thanks, Joe
JVAL,
I have not heard anything bad about Lennox. I have read their paperwork and contract. They want a decent piece of the interest generated by a TLC, hence the hefty minimum. There has to be enough invested to make it worth the effort.
You are in Long Island. There are TLC auctions in NY. In fact, in Nassau County, just next door. There are also munucipalites in Westchester County that do TLC's.
Why hire an agent and give away a large part of the interest when you can make all the interest? If you were investing a million dollars, then I can see using the services of someone, and at a much lower charge. However, with $25K to risk, consider learning the process yourself.
Best of luck,
Mitchell Goldstein
Thanks for the reply Mitch. I will be attending a TLC auction this month. Just wanted some feed back on the agents. Thanks, Joe
I just did a google search and studied the web site of The Lennox Group. I found out that they don't make a commision out of your interest income from the liens.
But for the rare cases when you get the dead to a property, then they work at selling the property for you and they keep half of the profit. So they actually are motivated to do research to find liens that most likely will not get paid and you win the house. I see you can even open an IRA with them.
Gee, I am finding leads to so much great stuff here on TCI. My plan: After making some money from rehabs, I'll invest that profit with The Lennox Group.
Yes, you are right, Lennox doesn't get any penny what you get from interest. Because, they ask 13% fee for $50,000 in the begining. So, my understanding, forget the first year's profit.
Otherwise, if just %3-10 properties are foreclosured per year, what is the percentage that you will have at least one of them? No need to mention, it should be right choice. [ Edited by sevimli on Date 03/05/2004 ]