Posted by Ben(NJ) on February 06, 2000 at 08:09:59:
Elena, most of the people buying tax liens are looking for the interest and not the property. I have been buying in large quantities for five years and have only taken title to one property. Then again I employ specific strategies insuring that I will get paid,
(i.e good properties with mortgages on them), also known in the industry as “no brainers”. There are
specific ways to get title to distressed properties such as targeting inner city properties without mortgages, vacant land etc. A friend of mine is an expert in this area. His name is Roy Stubblefield, find him at taxsales.com. He has designed many strategies for getting title and has helped hundreds
of people attain their goals. I also hear John Beck’s
materials are good but have not had a need for them myself. Good luck.
I just read Moskowitz’s The 16% solution and was wondering if anyone has had experience buying properties using these? I’m in MD where it looks as if the state encourages property transfers this way. There is a very short right of redemption period and foreclosure proceedings MUST be initiated within 2 years. Is this a good way to find great deals?
Posted by Paul_NY on February 06, 2000 at 23:07:21:
Elena,
I bought a tax lien certificate in MA. The way the tax collector explained things when I asked for the list would have discouraged most people from attending the auction. I was determined to learn the process since I’m in the real estate biz. (All I had at the time was Dave Del Dotto books)
Anyway, the certificate I chose to bid on was inner city property, a nice looking 3 family building, vacant with no mortgages.
After acquiring the certificate, an attorney told me to wait six months (the redemption period in MA) to begin foreclosure. He also said I should contact the owner and ask for the deed. If the owner let the property go to taxes, he probably didn’t care much about it.
I asked the owner. He GAVE me the deed and asked only that he pay no fees for the transfer. The property appraised for 50K.
There were others at the auction (no brainers) that Ben described, nice occupied single family homes with mortgages, a mansion converted to a office building OCCUPIED BY ATTORNEYS and doctors with a mortgage and vacant land. These were the ones that would have paid the interest on the certificate. Thats what you are reading about.
I wanted the property and the experience of foreclosing, not the return on the certificate.
