What are your thoughts on this type of ivestment
- it's my opinion that it shouldn't be called an investment it's more like a regular job.
- you will most likely always pay more than the tax lien and closer to the value of the home, which is usually distressed.
- many times you are competing at auctions with developers and house flippers who are bidding based on the potential profit of after they improve the lot or house if they can foreclose on it.
- you can go many auctions without winning any properties.
- if you win a lien and the people don't pay it off you are on the hook for foreclosure preceding's and ultimately you have to be the one to kick people out of their home, sometimes with their only crime being they couldn't afford the $200 tax bill because they had to buy cancer meds, or their spouse died and they were the one that handled all the finances or the one with income.
- you can't really resell a lien so you have to tie up a huge chunk of cash. You basically hand the government your cash for the right to hope some homeowner that has a history of not paying their bills will pay their bill to you on time.
- high yield return should immediately translate in your mind to high risk. And in this case with this type of investment the returns aren't all that high, only the potential ones if you can actually get it for around the opening bid. Which never happens.
- if you find residential real estate investing fun, and love dealing with real estate, have a history in real estate finance, appraisal, repo, contract boiler plate, and bureaucratic red tape and find all that fun, then it's one type of investment.
- don't use your credit cards to finance hoping you will get paid before the company charges you interest. I had a friend that did that.
Those are my immediate thoughts.
How to invest in taxlien certficates:America's wealthest kept secret
By Author Doris Robinson
People write books about "secret" investing techniques in order to prey on people, to sell books.
Not for altruistic purposes.
The returns and ease and positives they promote may, only may, be seen by about 1% of the people that actually try it.
what are other good out of the box investments?
Getting a job and turning it into a career, always improve your personal skills and knowledge.
Otherwise, talk to a financial manager or investment firm.
Assuming you can talk to them without feeling intimidated in any way so won't be quick to sign anything, plus can spot the difference between someone offering you information and someone just trying to sell you something.
