Where Should A Novice Tax-lien Investor Begin?
Good day to all,
I purchased John Beck's free and clear program and have studtied it up and down. Thereafter, I moved on to see what other tax-lien gurus have to say. Everyone says its a guaranteed return, yet declare that there are dangerous risk without research.
Questions:
What state should I begin my tax-lien investing?
What dangers should I be looking out for?
Should I seek a mentor for a period of time?
Any knowledgeable response would be greatly appreaciated,
ALM :-?
You have come to a great site to learn - and this is your first starting point! Learn more about state laws and the availability of each state of tax liens.
Question: What state should I begin my tax-lien investing?
Answer: You will find that penalty states are the best for return on your investment!
Question: What dangers should I be looking out for?
Answer: All of them - Like no equity, extensive rehab, useless parcels of land, bankruptcy, flood zones, irregular parcels just to name a few.
Question: Should I seek a mentor for a period of time?
Answer: Yes you should, but hard to come by!
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Thanx Michael,
I have been told I should start with the states that have the shortest redemption period. In order to get my feet wet.
Do you recommend any mentors for free or a reasonable fee?
Sincerely,
ALM :-?
AncientLandMark
I forgot to welcome you to TCI - Foregive me I'm just and old rude investor --LOL.
I have been doing this type of investing for years and I will tell you that a short redemption will provide less of a return. I know they teach how you can get great deals and yes you can but they are not as abundant as is being tough in most courses.
Let me give you an example I invest 15 to 20k in the game every year and every couple of years I actually take a piece of property but not for $100 LOL.
You will find competition vary stiff and competitive. Prime properties normally go vary high and most are unimproved land but every year I make an average of 12% return on my tax paper investment.
Most are redeemed, but I research each potential purchase just like an actual real estate purchase. I do my own title search. I want to know value. I look for equity only.
Understand if you take a property you will have to take it by foreclosure in many states, you will have to pay off mortgages and liens in most cases.
Some will dispute this fact and that's ok, but I know the game! It's not get rich and the odds are not in your favor to snag a profit of 100's of thousands of dollars.
You will find a hard time locating a mentor for free or even cheep! However, if you attend enough sales someone may take favor and mentor you.
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