Archive for Utility Liens
New Jersey Tax Sales And Prior Liens
Posted by: | CommentsLast week I went to a tax sale in New Jersey. I really don’t attend to many tax sale anymore for 2 reasons, one is that I do half of my investing in a tax lien investing fund, with money from my self-directed IRA. The other reason that I don’t have to go to many tax sales these days is that I continue to pay subsequent taxes on the liens that I have acquired over the last few years.
Even though the redemption period is only 2 years in New Jersey, the lien does not expire for 20 years. So if you have a good lien, that you know will eventually pay off, you can continue to pay the subsequent taxes and get the maximum rate on your these payments, which is 18%. There’s only one problem, for the smaller liens that are less than $1500, you only get 8% on the subsequent tax payments until the total delinquent amount is $1500. Read More→
Questions about Investing In New Jersey
Posted by: | CommentsI recently got a couple of questions about investing in tax liens in New Jersey. While I answered these in the comments section of this blog I thought that it would be helpful to answer them for you in one blog post since they are both about investing in New Jersey, but were submitted as comments on 2 different blog posts. So here are the questions and answers for you:
Question from Andrew:
In the state of New Jersey(specifically Sussex County), are recording fees , water and sewer reimbursed upon redemption? Read More→
Answers to More Questions About Utility Liens
Posted by: | CommentsThis blog post is?in response to some very good questions from Mike about utility liens. Mike had submitted these questions in comments on the post “Are Sewer Liens Worth Buying?”
Here are his questions and the answers:
Question #1: It seems that water/sewer liens can be big losers if the recording fees are greater than the returns. The returns on subsequent payments of water/sewer liens for one year might only be $20-40 and I have seen recording fees for $30. I guess you’re really banking on being able to pay the subsequent delinquent property taxes.
Answer: Yes, when you purchase a water, sewer, or other small utility lien, you are counting on being able to pay the subsequent utility amounts in order to make good returns. However I have to point out that though you might not make a lot of money on these small liens, you will not lose money on them. Where I invest the recording fee is $40, but it is paid back to the investor, along with a $12.00 search fee, when the lien redeems. And although you are making small amounts of money, where else are you going to be able to invest those small amounts for 8-18% returns? Read More→
