I want to invest in tax liens , but I see lien prices that range from 1k -18k. Should I go for 1 or 2 $10k liens or spread the investment out by getting a bunch of $1k liens? My investment strategy is to get interest NOT own the property.
2007-06-07 03:56:16 · 4 answers · asked by K C 2 in Business & Finance ➔ Investing
As much as I'd like to say just pick a strategy, I can't.
The property backing up the lien is pretty important. Whether you get 10 $1K liens or 1 $10K lien, if it's in the middle of a swamp, there's a high likelihood, you won't collect your interest and might just have the "option" to pick up that worthless piece of property and its overhead.
Tax liens can be a very lucrative consistent cash flow investment, but you need to do some homework to ensure its success.
Education about the process, etc is a great start. Partnering with a local realtor who can at least tell you what things to stay away from should be part of your due diligence so you don't end up throwing away good money.
Hope that helps!
2007-06-14 07:08:20 · answer #1 · answered by Yada Yada Yada 7 · 1⤊ 0⤋
Well honestly it does not matter wether you invest sum 1 or 2, what really matters is that you get high returns on your investment.
You see different state have different interest rates and payback times. so lets say if you wanted to make high returns on your investment you would purchase in states that give the property owner 2-6 months to pay back their taxes and in that way you can recieve a 50-90% return on your investment within one year.
the great thing about buying lots of 1k liens is that one of the owners might not pay back their taxes and you get to keep the property fair and square, then you can sell it to make a profit.
since you are new to this i suggest you get yourself a good guide to put you up to speed with the subject of tax lien investing. You can check out this comprehansive up to date guide at http://www.theadventurecouple.com/htmlredir.html
it certainly made my learning curve simpler.
2007-06-07 23:05:04 · answer #2 · answered by Drake S 1 · 0⤊ 0⤋
first of all, if it sounds too good to be genuine, it in all possibilities are high and that's extremely the case with infomercials. besides the undeniable fact that, you may get first rate returns on liens, besides the undeniable fact that it is not all that user-friendly. The 50% is genuine, yet in easy terms on 2nd 12 months liens in michigan (if I keep in mind wisely). So good luck on that. fairly purely about all those are are notes that government creates whilst somebody does not pay their assets tax. you may purchase that word and get a good return it fairly is government subsidized. 10% is fairly easy.
2016-11-07 20:27:31 · answer #3 · answered by Anonymous · 0⤊ 0⤋
i dont know much about tax liens so i would recommend spreading it out 1k each.
2007-06-07 13:08:58 · answer #4 · answered by Anonymous · 0⤊ 0⤋