Last year one of my tax liens redeemed that I had held since 2002. I made over $3,700 in profit on that lien on only a little more than $4,000. And I had put that money in over the course of 7 years and then did nothing for 3 more years. During that time the money I had invested kept earning interest. My initial investment was only around $450 and I kept adding to that each year for the first 7 years paying the subsequent taxes (in this case it was a utility lien so I was paying the subsequent utility payments). And then I decided to force redemption by sending pre-foreclosure letters to the owners and lien-holders of the property. The mortgage holder then paid off the lien, and I practically doubled my money in – investing a little each year.
My point is, if you have a little money to invest, start small and start now, later it will pay off!
Here’s a motivational message from my friend Arnfried of Be Motivated Today that talks about the importance of taking those small steps towards your goal:
“How do you eat an elephant? One bite at a time”
No matter how great the task, it can be competed by simply doing something on a consistent basis. Work a little bit on each of your 3 most important goals every week. Plan to work on them at a set time every week. This becomes a habit.
Even if your goals are not achieved within the time-frames you originally set, just keep plugging away at them.
If you have to complete one by a certain date, then just double your efforts every week.
But if a week goes by without you working on your goals, just spend a few minutes looking over your plans again. This will motivate you to work on them once more. But try to do a little bit each week.
“Small steps taken on a consistent basis will always lead to great results”
Before you know it you will see real progress. In time you will achieve the next mini-goal. Just keep taking all the small steps necessary to reach your goals!
Arnfried Klein-Werner
Motivator & CEO – Be Motivated Today
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By Joanne April 9, 2012 - 10:28 pm
Joe,
Yes the redemption perios in Florida is 2 years, but you do not get to foreclose on the property like you do in other states. You need to apply for the lien to go to a deed sale. And as Michael indicates you should have known this before purchasing the lien. As with any investment you want to know what your exit strategy is. As Michael suggests you may want to call the county and see what your options are at this point. You will have to apply for the lien to go to a deed sale, which will involve a fee and you will have to pay the subsequent taxes at this point. but don’t worry if the lien does redeem you get the maximum rate (18%) on your subs.
By Joanne April 9, 2012 - 10:23 pm
John,
that document and a sample lien assignment contract are provided in lesson 7 of my Build Your Profitable Tax Lien Portfolio course. You can find out more about that course at http://www.ProfitableTaxLienPortfolio.com
By Michael April 9, 2012 - 1:22 pm
Question for Joe, and I’m NOT trying to be a smarta$$. Why would you by a tax lien without knowing exactly what & when you could do with it? I went to an auction last week. Didn’t have time to research properties and passed on some as low as $7.00. (I got there too late to register, so it was a moot point.) But I wouldn’t buy something I didn’t know about. Maybe that’s TOO conservative, and I’ll change as I find out more. Again not a flame. I called a Fl county about their inventory of liens that didn’t sell. They told me on those over 2 years old, I could walk in, buy the lien, pay SUBSEQUENT taxes and a fee (about $500) and they would start the process to issue a tax deed. So I suggest calling the county and ask them what your options are at this point. Good luck.
By Joe April 9, 2012 - 11:47 am
I have a Florida tax lien for over 2 years now. I believe the foreclosure period is 2 years from date of lien for redemption. Is this correct and can I foreclose on the property after that time?
Joe
By John April 9, 2012 - 11:06 am
Can I get a copy of your pre-foreclosure letter?
Thank you.
John