OfflineTax liens are a great way for an investor with little money to get in to the real estate market. I often encourage a new student to buy a few liens so that they can start putting dollars to work quickly. The returns are very good, usually between 12% to 18%, and the redemption periods are often two years or less.
Where do I start? First of all, you need to find out if the state you are interested in sells tax liens. Some states only sell deeds. (That discussion is for another day.) You then contact the county that you are interested in buing a lien. The office you want to contact is often called the Tax Collector. Find out where a list can be found in order to look at available liens. You will usually make your purchase through this office.
This is only a thumbnail on how to start. You can call in to the advisory line and get more help on what to do.
Good luck in whatever venue you chose to invest.
Roy Voeks
Official RE Coach
Roy,
Thank you for your post. Learning how to do tax liens is something every investor needs to be involved with. Whether you have a lot of money or just starting out, it can be a great way to get money working for you.
Some great advice was taught to me by another investor is that tax liens you have your money work for you, but with tax deeds you will be working for your money.
In every state they are either a tax lien state or a tax teed state. There are a few that are a hybrid that do both. But usually they are either or. I'm researching a state that is a tax deed state because I want to own the property and control it.
Thank you for the advice Roy
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