About 15 yrs. ago, I found out about tax lien investing here in Cook County, IL. It is one of the largest counties in the USA. I found out about the details, put a deposit down so that I could bid. I then got the list ahead of time and drove around researching properties. I mainly was matching up the tax id with an exact address. I decided that I would buy just 1 tax lien to “get my feet wet”. I had 10 on my list that were what I deemed okay to bid on (tax id matched up with a real address).
The first day I bid, I sat near the front of the room. To my surprise on day 1 (they have about 3-4 days of bidding since the county is so huge), there were only about 15 people in the room. Since Cook County is so huge, I was surprised at how few people were there. Each time I would bid 18% (that is the best amount of interest you can get), someone else would bid me down. I came to realize that these bidders were actually representing large corporations and were there to bid on many properties. I also found out that they purposely bid down novice bidders to discourage them and hope that they would go away. The reason I came to that conclusion was that the big bidders would not bid against one another, but when I or another novice bid, they would bid us down. I just let them win because I was determined to get the lien at 18% and NO LOWER.
The 2nd day, I decided to sit near the back of the room, and when the property was called out by the auctioneer and I said “18”, I saw the large bidders turn around to see who it was, but just before they could open their mouth, it was sold to me. I won and I was so happy. This was in January. By April, it was redeemed. So I got my money back + 18% in 3 months. That comes to 72% annually. I never did another one as my life just got so busy.
What people don’t realize is that this takes time. I drove by about 50 properties before deciding on the 10 that I ended up to be okay to bid on. This took a whole 8 hr day, plus the 1 day going to the courthouse researching if there were any other back taxes. I also had to research the State of IL. laws and any specific county laws. For example, in Cook County, once you buy the lien, you then have to post notice in a newspaper after 6mos. and then 12mos. etc. If you don’t do this, you have no chance to secure a deed later. Fortunately, my lien was redeemed in 3 mos. so I didn’t have to post notice.
Now that I have more money and some extra time, I want to invest again in either tax liens or tax deeds. I heard that Iowa pays up to 24%.
What is the very best tax deed/lien investing course or book to buy to help me?