Watch The Competition When Buying Tax Lien Certificates
November 20th, 2007
James Douglas, owner of Municipal Tax Liens Inc. of St. Petersburg, Ha., is one of the investors who attends the tax sales in Waterloo. He was disappointed last year that heavy interest in the tax sale prevented him from buying even more lien certificates. Buying tax lien certificates is a large part of his business, so when there’s a lot of competition, it invariably means there’s money to be made.
Even when Iowa was 11/2 percent a month it was still profitable. But Iowa (tax sales) have one drawback: there is a tremendous amount of early redemption. Investors are looking for liens that have a much longer payback.
‘The point is that tax liens are really a yield return. People coming into this to find property to foreclose upon are going to be disappointed because the majority of the taxes are going to be redeemed in the first two months.
Entry Filed under: Finance :: Tax