How interest works on tax liens
In most states, tax lien holders are legal right to a fixed interest rate which can be quite attractive compared to other fixed income investments.
However, each state works differently:
- Some guarantee a minimum rate.
- Others make interest rates competitive through bidding.
Due diligence is essential to ensure you purchase the right lien on the right terms.
The power of limiting tax deeds
Brian’s team focuses heavily on finding inefficiencies when selling tax deeds. One big discovery? Live auctions.
Since COVID-19, many auctions have moved online, increasing competition. But in states like Texas, certain auctions are still being held live, attracting fewer bidders and closing more potential deals for those who can attend in person.
By focusing on these less competitive opportunities, investors can acquire real estate at favorable prices.
Hidden opportunities in mortgage foreclosures
While many believe the “golden age” of mortgage foreclosure ended years ago, Brian’s team has discovered a niche within this niche trustee auctions in Texas.
Here’s the secret:
- Everyone knows big players like Auction.com, but they are just one of many administrators.
- Other managers may appear at any time during the auction period and sometimes read their sale notice minutes before the closing date.
- If there is no one to bid, the property will remain unsold, creating an opening for prepared investors.
- By simply being present and paying attention to these overlooked sales, smart investors can land great deals with little competition.
Words of caution
These opportunities are not get-rich-quick schemes.
Before you dive in:
- Consult a real estate attorney who understands your state’s specific tax sale and foreclosure laws.
- Do your research there are as many ways to lose money in this space as there are to make money.
- Start small and learn the process before investing large amounts of capital.
How to get started
If you are interested in exploring tax foreclosures, tax liens, or even niche foreclosure strategies, Tax Sales Tools offers tools, data and even managed investment options.
Visit taxsaleresources.comcall their team and mention that you heard about them through Brian’s conversation. They will put you in touch with him directly.
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