Tax Lien Certificates - Tilted Forum Project Discussion Community

Cynthetiq · 03-17-2005, 12:20 PM

Can anyone tell me about purchasing Tax Lien Certificates?

My friend started buying them and the expected return is about 16% in just a couple years. He is only doing it because he's got a friend that is funneling properties that he can purchase liens for but cannot elaborate on it more.

NoSoup · 03-17-2005, 01:07 PM

I have been interested in doing it for a while, now, but there are some risks with investing in Tax Lien Certificates that I am not quite yet ready to take on.

From my understanding, when bidding on tax liens, the auctions are only given lot numbers, so you don't really have any idea what you are bidding on. It could be a chunk of land that is flooded half the year or a residential house. If it is the former, and the owner decides not to pay off the tax liens, you then basically gain ownership of pretty much useless land. I am not too comfortable buying sight unseen...

From the research I have done, though, I do know that you should make sure that you thoroughly investigate the title and possible bankruptcy of the property. Know the laws in the area you are investing - here in Wisconsin, Tax Liens take precedence over everything else, so investing here is pretty darn safe. Other states, however, may not have the same laws, and the mortgage holder and/or contractors may be able to sneak into first position.

Each state uses either Tax Lien Certificates or Tax Deed Sales when collecting on delinquent property taxes. Below is a list of the states and how they collect.

Alabama - Tax Lien Certificates at 12% interest
Alaska - Tax Deed Sale
Arizona - Tax Lien Certificates at 16% interest
Arkansas - Tax Deed Sale
California - Tax Deed Sale
Colorado - Tax Lien Certificates at 9+ % interest
Connecticut - Tax Lien Certificates at 18% interest
Florida - Both, Certificate at 18% interest
Georgia - Tax Lien Certificates at 20% interest
Hawaii - Tax Deed Sale
Idaho - Tax Deed Sale
Illinois - Tax Lien Certificates at 18% interest
Indiana - Tax Lien Certificates 10-25% interest
Iowa - Tax Lien Certificates at 24% interest
Kansas - Tax Deed Sale
Kentucky - Tax Lien Certificates at 12% interest
Louisiana - Tax Lien Certificates at 17% interest
Maine - Tax Deed Sale
Maryland - Tax Lien Certificates at 10-24% interest
Massachusetts - Tax Lien Certificates at 14-16% interest
Michigan - Tax Lien Certificates at 15-50% interest
Minnesota - Both, Certificate 12% interest
Mississippi - Tax Lien Certificates at 17% interest
Missouri - Tax Lien Certificates at 10% interest
Montana - Tax Deed Sale
Nebraska - Tax Lien Certificates at 14% interest
Nevada - Both, Certificate 12% interest
New Hampshire - Tax Lien Certificates at 18% interest
New Jersey - Tax Lien Certificates at 18% interest
New Mexico - Tax Deed Sale
New York - Tax Lien Certificates at 14% interest
North Carolina - Tax Deed Sale
North Dakata - Tax Lien Certificates at 9-12% interest
Ohio - Tax Lien Certificates at 18% interest
Oklahoma - Tax Lien Certificates at 8% interest
Oregon - Tax Deed Sale
Pennsylvania - Tax Deed Sale
Rhode Island - Tax Lien Certificates at 6-18% interest
South Carolina - Tax Lien Certificates at 8% interest
South Dakota - Tax Lien Certificates at 7-8% interest
Tennessee - Tax Deed Sale
Texas - Tax Deed Sale
Utah - Tax Deed Sale
Vermont - Tax Lien Certificates at 6-12% interest
Virginia - Tax Deed Sale
Washington - Tax Deed Sale
Washington, DC - Tax Lien Certificates at 12% interest
West Virginia - Tax Lien Certificates at 12% interest
Wisconsin - Tax Lien Certificates at 18% interest
Wyoming - Tax Lien Certificates at 18% interest

03-17-2005, 12:20 PM	#1 (permalink)
Cynthetiq Tilted Cat Head Administrator Location: Manhattan, NY	Tax Lien Certificates Can anyone tell me about purchasing Tax Lien Certificates? My friend started buying them and the expected return is about 16% in just a couple years. He is only doing it because he's got a friend that is funneling properties that he can purchase liens for but cannot elaborate on it more. __________________ I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not. What's the best nation in the world? DO-NATION!

03-17-2005, 01:07 PM	#2 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	I have been interested in doing it for a while, now, but there are some risks with investing in Tax Lien Certificates that I am not quite yet ready to take on. From my understanding, when bidding on tax liens, the auctions are only given lot numbers, so you don't really have any idea what you are bidding on. It could be a chunk of land that is flooded half the year or a residential house. If it is the former, and the owner decides not to pay off the tax liens, you then basically gain ownership of pretty much useless land. I am not too comfortable buying sight unseen... From the research I have done, though, I do know that you should make sure that you thoroughly investigate the title and possible bankruptcy of the property. Know the laws in the area you are investing - here in Wisconsin, Tax Liens take precedence over everything else, so investing here is pretty darn safe. Other states, however, may not have the same laws, and the mortgage holder and/or contractors may be able to sneak into first position. Each state uses either Tax Lien Certificates or Tax Deed Sales when collecting on delinquent property taxes. Below is a list of the states and how they collect. Alabama - Tax Lien Certificates at 12% interest Alaska - Tax Deed Sale Arizona - Tax Lien Certificates at 16% interest Arkansas - Tax Deed Sale California - Tax Deed Sale Colorado - Tax Lien Certificates at 9+ % interest Connecticut - Tax Lien Certificates at 18% interest Florida - Both, Certificate at 18% interest Georgia - Tax Lien Certificates at 20% interest Hawaii - Tax Deed Sale Idaho - Tax Deed Sale Illinois - Tax Lien Certificates at 18% interest Indiana - Tax Lien Certificates 10-25% interest Iowa - Tax Lien Certificates at 24% interest Kansas - Tax Deed Sale Kentucky - Tax Lien Certificates at 12% interest Louisiana - Tax Lien Certificates at 17% interest Maine - Tax Deed Sale Maryland - Tax Lien Certificates at 10-24% interest Massachusetts - Tax Lien Certificates at 14-16% interest Michigan - Tax Lien Certificates at 15-50% interest Minnesota - Both, Certificate 12% interest Mississippi - Tax Lien Certificates at 17% interest Missouri - Tax Lien Certificates at 10% interest Montana - Tax Deed Sale Nebraska - Tax Lien Certificates at 14% interest Nevada - Both, Certificate 12% interest New Hampshire - Tax Lien Certificates at 18% interest New Jersey - Tax Lien Certificates at 18% interest New Mexico - Tax Deed Sale New York - Tax Lien Certificates at 14% interest North Carolina - Tax Deed Sale North Dakata - Tax Lien Certificates at 9-12% interest Ohio - Tax Lien Certificates at 18% interest Oklahoma - Tax Lien Certificates at 8% interest Oregon - Tax Deed Sale Pennsylvania - Tax Deed Sale Rhode Island - Tax Lien Certificates at 6-18% interest South Carolina - Tax Lien Certificates at 8% interest South Dakota - Tax Lien Certificates at 7-8% interest Tennessee - Tax Deed Sale Texas - Tax Deed Sale Utah - Tax Deed Sale Vermont - Tax Lien Certificates at 6-12% interest Virginia - Tax Deed Sale Washington - Tax Deed Sale Washington, DC - Tax Lien Certificates at 12% interest West Virginia - Tax Lien Certificates at 12% interest Wisconsin - Tax Lien Certificates at 18% interest Wyoming - Tax Lien Certificates at 18% interest __________________ I have an aura of reliability and good judgement. Just in case you were wondering...