Tax Sales reality vs myth - Posted by John V, FL

Posted by Bill H on June 29, 2003 at 16:24:09:

Hi Tim:

Wholeheartedly agree with you. Interest rates are probably pretty static. The problem is the bidders who bid the rate down. We got one guy who comes to our sales from FL and he bids for about 50 people…not his money so he bids until he gets whatever he wants…really drives the rest of us up the wall. But; what can you do?

Then he moans about the situation in FL where the guys are willing to take zero interest on their $$$ for 2 years in hopes of getting the property.

Your analysis of what you actually get is “Right on the Money”…I have hit a few minor jackpots but nothing like the infomercials talk about. Only thing I got going is that I have a party that buys everything that I do not want.


Tax Sales reality vs myth - Posted by John V, FL

Posted by John V, FL on June 29, 2003 at 13:48:32:

As a followup to your interesting discussion tax sales are still good buys in the extremely remote and depressed areas but very competitive in most places. If you hav eeither no money or a lot of money tax sales make very litlle sense as a main utilization of your time today. Tax Sales ten or more years ago were a great buy everywhere. Most of us in this biz since the early 90’s should have done well enough to be financially independent by now.

John Beck I believe is giving good information however it is not timely or of much relevance in today’s climate and his infomercial is a pathetic attempt by sleazball marketers to stretch the truth. I too have bought houses for 10 cents on the dollar. It’s just that its been many years since that happened. Today I seem to monitor and go to way to many sales for the few properties I can buy at even 70 to 80 cents on the dollar. I’m probably not going to run to towns cross country in Oklahoma like Ronald Starr to invest 20k or 30k on some dilapidated ghetto homes as I have another outlet not even related to real esate that is phenomenal while keeping all the cash constantly working but others probably will. Timing is everything and when everyone is in it is time for you to be out.

Reality only needs to happen once - Posted by JT-IN

Posted by JT-IN on June 29, 2003 at 22:10:29:


I invest in Tax and Mtg foreclosures primarily in Ohio, and Ohio has both Tax Liens and Tax Deeds. While it is true that many/most you purchase are redeemed, it only takes one really good one to make a believer oout of you.

In 2002 I bought a Tax Deed on a comm’l property, of course there were redemption rights attached, for 132K. Lightning struck on this one, as I was able to sell it 183 days later for 335.5K. Owner did not redeem, shorter period than Tax Lien, but same concept… everyone thinking, this ain’t gonna happen… and it did.

You can’t convince me otherwise, cause ToDo and I have already been to Wonderland…

Just the way that I view things…

JT-IN (aka Alice)

Re: Tax Sales reality vs myth - Posted by Tim Jensen

Posted by Tim Jensen on June 29, 2003 at 15:01:42:


I happen to agree with you on the tax sales. There is a lot more involved then just buying the tax lein certificate. In fact, each state has such different procedures I think a course for each state would make the most sense. However, I don’t agree with the name calling.

I’m in Illinois and if you listen to all the tax sales gurus, you can get up to 36% per year. Problem is the only parcels that bring 36% are the lots in dumpy parts of town that are worthless. At our last tax sale rates were closer to 2-4% per year. Oh yeah, I did check into the smaller counties and they were having the same 2-4%.

As for getting the deed, it happens maybe 2 times out of every 100 tax deeds that are filed for. Please note I said 2 out of every 100 tax deeds applied for that is not to be mistaken with the number of parcels that go to sale. That number would be closer to 2 out of every 2000-2500 parcels that go to sale.

I am curious, do you think rates at these tax sales will ever go up?

I agree with you however… - Posted by Tim Jensen

Posted by Tim Jensen on June 29, 2003 at 23:34:01:


Let me start off by saying you add a lot to this site. This is not the preamble to the attack either.

I think this post is trying to point out that what happens on the commercial is unique and far from the norm. I have no doubt that you were able to land that commercial property, however how many leins do you buy a year? You don’t have to answer.

My point is this, in order to get those killer deals, you need to put out a lot of money. If you only buy 3-5 TLCs a year you have a very very very low chance of getting a deed. I am not saying it is not possible, but very very unlikely.

I am not trying to discourage someone from buying TLCs, I just think they need to know the reality before they buy. Personally, I think that TLCs are a good and have invested in them in the past and will keep doing so.

Keep up the great posts!

Tim Jensen