Tax Liens Sales

Does anybody think highly of tax lien and tax deed investments?

Hi, I just came across the concept of tax liens and tax deeds.. I understand that it requires extensive knowledge and due diligence. My question is, is this investment worth the time and effort ? Please mention any success stories. Thx

Public Comments

1. They can be a good deal, but generally only if the property is not just a run-down shack on the seedy side of town as most of them tend to be. You could wind up with a "pig in a poke" that you have to tear down at your own expense and not be able to sell. If the owner pays up, the rate of return can be pretty good -- typically 18% or better in most states. But if they don't then you'd be forced to foreclose on the deed and take possession and then sell to recover your investment or turn any profit. If the property has been declared a public nuisance you could be forced to repair or remove any improvements or otherwise clean it up at your own expense. Most properties that go to tax foreclosure do so for a good reason: It's such a dump that the owner sees no other option to get out from under it. If you're a developer looking to gentrify a blighted area it's a great deal, but if you're "Joe Six Pack" looking to make a few dollars it can quickly become a nightmare. Don't forget that once you take title, YOU have to start paying the property taxes!