It frustrates me when new investors come to me after they make a tax lien investing mistake. It’s usually after they’ve bought their first tax liens and want to sell them – or they want to know what to do next. Sometimes they don’t contact me until the redemption period is over. They assume that it’s time to get paid, but they don’t know how. They find me online and ask me what to do.
The problem is that the right time to come to me is BEFORE they invest their money in tax liens – not after. Why is this? Because I can help them invest in liens that either will redeem or that will lead to them receiving valuable property. What most investors don’t understand is that the biggest mistake new tax lien buyers make is buying liens at the tax sale on parcels that are not worth the money it will take to get the property.
Case in point…
Most of the time investors that make this tax lien investing mistake find me. But recently I found one of them in a Facebook group. I saw that someone had some liens they were selling in the group. And I’m always on the lookout for secondary tax liens for my students. So I contacted the seller and got the list of liens they had for sale.
I had a student who was trying to buy tax deeds in the same county in Florida that these liens were in. He had been blown away at the deed sale buy the amount of money that investors were paying to get these liens. In some cases they were bidding up to market value for properties in the sale. So when I saw these secondary liens available, I thought that might be a viable alternative for my student to get property in that county.
What we found out about these liens..
After researching the liens for sale we found that some of them were on vacant land, and there were some liens on houses. The problem that we found with them though is that some of the vacant parcels where land locked, they had no street access. The vacant parcels that did have street access were in very high crime areas. Areas that most people would be afraid to be in. And all of the houses that were on the list, were low value properties in these high crime areas. That was not something that my student wanted, so he passed on the opportunity to purchase these liens.
How to avoid making this tax lien investing mistake…
So how do you avoid making this same mistake? Get some education about how to invest in tax liens the right way before you bid at a tax sale. Education is important when it comes to investing in tax liens! I know that some people make it sound like it’s the best thing since sliced bread and the safest way to get rich in America, but it’s really just a way to invest your money for high returns IF YOU KNOW HOW.
If you don’t know how to do it right, you can lose your money. Free information is great, and I do have a lot of free information on my web site at https://taxlienlady.com and on this blog. But sometimes you need more. Especially if you are investing your savings or retirement money! Isn’t it worth it to spend some money to be sure that your not going to throw the money your investing away on something that will never pay off? I think so…
That’s where I can help…
I have coaching and mentoring programs and step-by-step online courses. Some of these programs include access to tools and resources that make getting information for tax sales and researching tax sale properties easy. And when you purchase one of my online courses, you get lifetime access to the course and any updates.
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