Quote:
Originally Posted by Joeaksa
Eric,
Thanks and did not fully explain the situation. The "tax lien sales" are indeed held in Feb of each year and its an auction process.
The amount of the interest can be bid down but after 31 May (last weekend) if there are any properties that have outstanding tax bills against them then they are open for purchase AT ANY TIME. These properties have no bidding on them and if you take the lien you get the full 16% return.
If I buy a tax lien property this week when everything is opened up, eventually I will get either my 16% return on the tax amount or the property when I foreclose on it in 3 years.
THE,
I understand the process just fine. If the above is not correct then please let me know.
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That sounds correct.
My only point was there is no guarantee you will get 16% and the return of your principle back. You might, or you might lose it all. There are a lot of issues that need to be understood, esp. re the title to the property, liens, the value of the property, and bankruptcy issues (and probably lots of others).
Like all things financial, it isn't that easy. Lots of brilliant people are out there trying to beat the S&P for a return, it isn't that easy to do. (Of course other than the investors here on PPOT who routinely get 40% returns in the stock market, or 25% in bad years, and whose houses are of course continuing to appreciate during the decline).