OfflineTax liens are a great way for an investor with little money to get in to the real estate market. I often encourage a new student to buy a few liens so that they can start putting dollars to work quickly. The returns are very good, usually between 12% to 18%, and the redemption periods are often two years or less.
Where do I start? First of all, you need to find out if the state you are interested in sells tax liens. Some states only sell deeds. (That discussion is for another day.) You then contact the county that you are interested in buing a lien. The office you want to contact is often called the Tax Collector. Find out where a list can be found in order to look at available liens. You will usually make your purchase through this office.
This is only a thumbnail on how to start. You can call in to the advisory line and get more help on what to do.
Good luck in whatever venue you chose to invest.
Roy Voeks
Official RE Coach
Where I live in Waterbury, CT, the city holds a tax auction every month I would say and they auction off the properties that are tax delinquent. The city pays 15% on your money and the redemption period is 6 months, some times 2 months. I want to buy some liens from there but most of the properties get caught in a bidding war and sell for more than value. I want to look into the florida market for tax liens.
Reynold Orozco