The Dangers of Leftover Tax Liens

Leftovers are NOT good for you! Leftover tax liens, that is, or OTC (over the counter) liens as they are commonly referred to. Here’s why…

I get a lot of questions about leftover tax liens and deeds. These are the liens and deeds that don’t sell at the tax sale. They are the left-overs. There are a few tax lien investing “experts” that have people thinking that leftover tax liens are the way to go. They seem to think that because there is a lot of competition at tax sales, and you can’t always get double digit interest rates when bidding at tax lien sales or  get real estate for a fraction of it’s value at a tax deed auction, that it’s better to buy the leftovers or OTC liens directly from the county. Their rationale is that there are so many liens and deeds that are not sold at the sale and made available to purchase directly from the county. These are usually available for purchase without any competitive bidding. The problem is they fail to tell you 2 things. The first is that leave out the part about why these liens or deeds do not sell in the first place and the second is that not all counties have over the counter liens or deeds.

Why I don’t invest in OTC liens or deeds

dangers-of-left-over-tax-liensI am constantly being asked about leftover or OTC liens. People want to know where they can get them. That’s because not all counties sell leftover tax liens or deeds. Some counties will just keep offering them at auction until they sell. But even for the counties that do make over the counter liens or deeds available, it is not strategy that I personal use or recommend to my students.

Some people will claim that there are so many liens or deeds left-over, all you have to do is go to the county and purchase them direct. And then you can get liens without bidding down the interest, or deeds without bidding up the cost of the deed. But even for the counties that sell leftover liens or deeds, this is not a good strategy. Think about it. If the tax sales are so competitive that some gurus are advising people not to bid at the tax sale, what makes you think there is anything good left over. The truth is that almost all of the left-overs are junk properties.

So many times someone comes to me after they have followed someone else’s advice and purchased left-over liens, and they have lost money on their investment. They bought liens on junk properties and now want to sell them, but nobody is buying. Nobody is buying and the liens have not redeemed. So now they need to make a choice, foreclose on worthless property, that they won’t be able to sell or cut their losses. If they only had come to me first, before they bought the liens, I could have prevented them from losing money.

There is a way to invest in OTC liens profitably but it is time consuming and not conducive to the way that most people want to invest. Every once in a while a good property does slip through the cracks, but when that happens it gets grabbed up right away. Investors are waiting for that opportunity. It’s like looking for a needle in a haystack and when you do find it, you have to be ready to pounce and be first in line to purchase that lien or deed. This is not a strategy for new investors, and as I mentioned earlier it is not one that I personally use. I have other strategies that I use to avoid the competition at tax sales and make more money on tax liens. And I share these strategies in my Advanced Tax Lien Investing Secrets (ATLIS) Training. I also still attend live and online tax sales. That is still my preferred way of getting profitable tax liens.

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October Online Tax Lien Sales – What You Need To Know…

online tax lien salesWhen I started investing in tax liens, I went to the live auctions. But then I discovered that some states have online tax lien sales. That’s right, you can do it from the comfort of your home, or anywhere that you have access to a computer. You don’t need good credit and you don’t need any experience. Anyone with a social security number and U.S. bank account can participate in these tax lien sales.

Maybe you’ve heard all the hype about tax lien investing, You may have heard or seen some of these  headlines….

“You can make a fortune investing in tax lien certificates from the comfort of your home”

“Purchase government foreclosed homes for pennies on the dollar from your computer”

“You can invest in highly profitable and extremely safe tax liens and tax deeds from anywhere in the world”

This is what you’ll find from some of the top selling, and very expensive tax lien investing programs on the web. But here’s what these sites don’t tell you:

  • First, they don’t tell you that every state in the US does not sell tax liens and among those that do, only a handful have tax sales online.
  • Second, they don’t tell you that you need to do your due diligence before you purchase a tax lien if you want to make sure to collect a profit.
  • Third, they don’t tell you that each state has different laws and procedures when it comes to tax sales, and they don’t let you know what those procedures are.

But, there are certain things that you need to know in order to invest safely and profitably in the online tax lien sales this October:

  • You need to know which states have online tax sales and where and when they take place
  • You need to know what the risks are when buying tax liens online and how to avoid them
  • You need to know how to do your due diligence on tax sale properties from a distance

The good news is that you can get all this information in the Buying Tax Liens Online home study course. The course is online and once you register, you get all the updates for life. All for one low price. Counties in states that are new to online investing are added to the course all the time. In fact this year we added one county in Missouri and a few counties in Mississippi. This was the first year that either of these states had online tax sales.

Which States Have October Online Tax Lien Sales?

Coming up in October are online tax lien sales in Colorado and New Jersey. Want to know how you can take part in these online auctions? Where to find them, what the procedures are, how to pick the right properties in the sale to bid on, and what to bid so that you make a profit every time? Get the Buying Tax Liens Online home study course and find out!

CLICK HERE to find out more and get the course!

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How to Make Money Fast Wholesaling Cheap Government Homes

HUD home dealsI’ll be hosting a free live training with my real estate investing mentor, Mark Jackson (MJ) of on “How to Make Money Fast Wholesaling Cheap Government Homes,” Wednesday September 27 at 8:30pm Eastern Time!

If your real estate deals are falling apart because:

  • You don’t have all the funding
  • You can’t find good deals to start with
  • You don’t know where to start, never the less how to finish,

This is a training that will help!

I’m hosting a special free webinar training with my good friend and mentor, Mark Jackson. ‘MJ’ will give an EXTREME live training showing exactly how to do deals using real life examples….

You’ll see REAL deals that will show you how he works everyday…and how he makes tons of PROFIT. This FREE training will show you the main website he and his students use to find deals that are way under market price – this is an unheard of inside look at real estate investing!

Here’s what you will learn in this training:

* How he and his students find deals

* How important it is to get the proper valuation of a deal

* How to get the deal accepted

* How find the buyer

* How to BUY with out using your own money

Many investors spend their entire career hoping for this detailed information and never get it. They end up “hit and missing” at their deals. But, who wants to miss? It’s hit it OR quit it to me! That’s why I hosted this EXTREEM training with Mark Jackson.

In this training MJ will show you real life examples of how he does deals everyday and… doesn’t use his own money! You can do it too.

You can register for this complimentary training at:

Join MJ and myself on Wednesday September 27, 2017 at 8:30pm Eastern Time / 5:30pm Pacific, to find out how you can take advantage of the special offer to make your money back on his one of kind HUD Deal Training. I’ve used this training to do my last few deals, so I know it works!

Better Than Tax Deeds!

I think you’ll find that this properties are even better than tax deeds. Why? Because with tax deed properties you need to pay all cash, usually on the day of the tax sale, you have to bid at a live auction, and you don’t get to inspect the property before hand. With these properties, not only do you get to inspect them, but you get a property report with disclosure, bidding is done privately, and you have a few days to get your money together for the deal. Sometimes these deals can even be financed. All you have to come up with is $500-$1000 earnest money in order to get the deal done. Plus unlike with tax deed properties you get a clear marketable title to these government homes!

Find out more on Wednesday Night

Register Here to get all the details about how you can make money fast wholesaling cheap government homes!

Encouraging You To Profit!


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Tax Lien Investing Webinars: Is This What You Want To Know?

Where's the best place for online tax lien investing

Here’s a question that I received recently in response to one of our tax lien investing webinars:

“Joanne, I missed the webinar. Is there a chance for a replay or a way to view it (perhaps it is archived)? Also, how often do you have webinars?”

This is not the first time I’ve been asked this question so I thought it fitting to post the answer here for everyone. We actually have 3 different types of tax lien investing webinars here at Some of these webinars are free, and others are part of a paid membership service that we offer.

Here’s an explanation of our webinars and trainings:

Continue reading

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Most Profitable State For Tax Liens

profitSo which state is the most profitable state for tax liens?

The most profitable state for tax liens is Illinois. The rate in Illinois is 18%, but that is a six month penalty, not an annualized interest rate. So the real maximum rate of return in Illinois is 36% per year. Instead of an annualized interest rate, it’s a penalty amount applied every 6 months. Therefore, you can actually make more than an annualized return of 36%. For example, say you get a tax lien at 18% and it gets redeemed in the seventh month. Then you’d receive 36% on your money in the seventh month, that’s better than an annualized return of 36%. It’s more like an annualized return of 62%! Continue reading

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