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Tax lien certificates

Old 09-01-2015, 06:19 PM
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Default Tax lien certificates

Who knows a good bit about them? Just found out what they are. I'm interested.
Old 09-01-2015, 06:23 PM
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Don't get too excited .... big companies bid the rates down so low it won't make much sense ...
Old 09-01-2015, 06:29 PM
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Originally Posted by triplenet View Post
Don't get too excited .... big companies bid the rates down so low it won't make much sense ...
Funny, when I was posting I thought you'd be a good resource.

Seems like you have to know your stuff and be organised to buy...the legwork is worth the payoff is the idea I assume.

I see your point. The others who bid it down bc it's a better return than the bank.
Old 09-02-2015, 04:17 AM
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Originally Posted by Budget View Post
Funny, when I was posting I thought you'd be a good resource.

Seems like you have to know your stuff and be organised to buy...the legwork is worth the payoff is the idea I assume.

I see your point. The others who bid it down bc it's a better return than the bank.



The certs are like coupon clipper bonds for the big players... They are sitting on tons of cash and cant get a return ...

For me - I don't get out of bed if I cant make say 7% ... Certs are closer to 2%

All these niche markets used to be for the smaller investor - now big players are in every market... Makes it tough for the little guy to compete and make a buck
Old 09-02-2015, 05:28 AM
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Originally Posted by triplenet View Post



The certs are like coupon clipper bonds for the big players... They are sitting on tons of cash and cant get a return ...

For me - I don't get out of bed if I cant make say 7% ... Certs are closer to 2%

All these niche markets used to be for the smaller investor - now big players are in every market... Makes it tough for the little guy to compete and make a buck
Spot on, they're a waste of your time and cash. My Dad, an old real estate guy from the 60's encouraged me to try it. We bought a few of them and could never generate more than about 2% return year over year. Not worth tying up my cash for that.

Now, Tax Deed sales on the other hand can have a better return, but be for warned, they require a lot more up front, and have greater risks. Some come with a lot of "baggage" in the way of liens, fines, etc.
Old 09-02-2015, 05:40 AM
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Is HomeSite still an active member? I think he was in this business.
Old 09-02-2015, 05:45 AM
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The issue is there is so much cash to be invested in something and not many good places to put it.

It would suck to be trying to live off of your investments with returns like that.
Old 09-02-2015, 05:46 AM
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Originally Posted by Cuzmondo View Post

Now, Tax Deed sales on the other hand can have a better return, but be for warned, they require a lot more up front, and have greater risks. Some come with a lot of "baggage" in the way of liens, fines, etc.
For properties that just forgot to pay taxes and their deeds are sold, the Alabama rate is 12%. You'll be muscled out on the courthouse steps by attorneys and RE brokers that know which ones will generate a return....that is collectible.

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