Originally Posted by brewer12345
uncle, could you talk a bit about the tax lien thing?* I have read a couple of books on the subject and it seems like it isn't that hard, but that you actually have to be there to do the research, buy the lien, etc.* What kinds of returns did you get?* Where did you buy the liens?
I wrote a long explanation of the tax liens and then promptly lost it, so I'll try again, but maybe shorter.
Michigan did some in the 90's. Law has since changed. Was 1% return a month, then after 12 months (I think) went to a straight 50% gross return. Three years later you could foreclose and get either paid, or the property.
Florida late 90's early 2000's, bid against interest rate. So at auction if you bid 9% , 6% or 4.5% and are low, you get that rate. Same idea that after 3 (?) years can sue and foreclose, thus either get paid or property.
Never did in Illinois/Wisconsin so can't comment there.
Made 10-30% on Michigan properties, 5% in Florida, all cash on cash, not taking into account expenses.
Research of law and procedure is an absolute must. Also must spend time to know the area. Key is to not bid on junk property.
Just a short outline with a few points.