tax lien auctions

If you contact your county courthouse, they can tell you when and where the auctions are held, as well as when the postings are given on properties that are delinquent in paying property taxes. I see that you are a Tax Lien Certificate state. The process is the same in all "Lien" states, just the time will be different.

In "bid down the interest" states like Florida, Illinois and the District of Columbia, the statutory rate may be 18%, but that is only where the bidding begins. Most liens on good properties will be bid well below that, since other investments are offering less than 5%. At the 2001 sale in Washington, D.C., for example, most liens went for around 9%. At recen Florida sales,we have seen rates from 1/4 to 17%. Since rates on "safe" investments like certificates of deposit are so low, institutional bidders competed with each other on most liens over about $1,500. For liens on nice properties, these bidders would bid 1/4%. For the new investor this action didn't make sense. Why would these institutional bidders accept a rate so low? The answer lies in the difference between an interest rate and a yield or rate of return. For example, we buy a lien in Florida at a rate of 1/4%. My yield, or rate of return, is likely to be around 8 to 10%. This is the part that the novice misses altogether. Florida has a minimum penalty of 5%. As such, even if We bid 1%, the minimum penalty to the owner is 5%. If the owner pays the lien off one year later, do we get 1% or 5%? We would receive 5%, since that is the minimum!

I just found 5.276 acres that is going to auction tomorrow due to delinquent taxes. Value is listed as $23,760. Delinquent taxes are $3,538.51 which is the bid amount plus court fees. Has anyone bought land at auction and then turned around and sold it?? Any advice/info. will be appreciated.

Thanks!
Donna

Donna After you get the property make SURE you go through the court to put it in your name A "Quiet title action" Good luck!

In real estate investing, land can come with the highest risk. Especially raw land. Improved land is where the utilities have been ran, roads, etc. When purchasing land, you aren't generating any cash flow. You're paying the taxes and waiting the new construction to get in high gear again.

I was involved in the training program 5 years ago and recently heard Dean was offering tax liens
I have flipped 6 houses built 6 and picked up 2 multis to hold for rental in the last 5 years. with all the talk about forclosure freezing, I thought tax liens might be a good avenue to pursue, any insight would be appreciated Thanks

Is anyone familiar with tax sales in Maine?

Thanks

Rich

I am very interested in tax liens as a stratagy for aquireing my first real cheap home to own as well as flips, but is it true the previous owner has to pay you back what you caught up for them as well as the becomes yours with no other liens, ie... a mortgage ect.. that just seems like if they can't pay the back taxes why would they pay me.Unless there is a stratagy in which as an investor they can stay in the home as a tenant now, Please help me out with this question. AThis is Eric in Topeka KS.

Roca07, I am from Maine, no longer live there but would love to go soon and possibly invest in some tax liens there myself. Born in Bangor grew up in Bar Harbor. Miss that lobsta for $2.99 a lb. It's more like $15.99 here in Topeka KS. Let me know what you find out.

Eric,

From what I have gathered Maine is strictly a tax deed state and when folks get behind on their taxes(18 months or more typically)then the individual towns work
out payment plans. I'm guessing that these properties are not mortgaged since
the banks usually protect their interests by paying the prop taxes.I called my local assessor in town and she was friendly. She asked me to call back in about a month as she will have a list of owners who are at least 18 months behind. I will then cull the list and hopefully find opportunities.By the way Bar Harbor is a great place. A one week camping trip to Arcadia in my 20's really put Maine on my map

Cheers

Rich