There are basically 2 types of tax lien investors; those that invest to get high interest on their money and those that invest for the possibility of owning properties for the back taxes. Which are you? Tax liens are not a way to get property for back taxes, but it does happen once in a while. Investors who want to own property have a better chance of getting the property with redeemable deeds. And of course with tax deed you are actually purchasing the property. But, did you know that there is another way to invest in tax liens and increase your chance of foreclosing on the properties?
You can increase your chances of foreclosing on a tax lien by buying secondary tax liens ready to foreclose from another tax lien investor. Why would an investor want to sell you their lien when it’s ready to foreclose? Some investors buy liens for the return they get and they are really not interested in owning property. They may be investing from another state or another country and don’t want to own property where they purchased the lien. They would rather have the return on their money then pay the foreclosure costs and wait for the lien to foreclose and then have to deal with having to rehab, sell, or rent the property. They would even rather take a smaller return than they bid at the tax sale, then go through the foreclosure process.
Large institutional tax lien buyers sell off their liens all the time, but they usually sell them in bulk to banks, fund companies, and large investors. They don’t cater to small investors. And because they buy in such large quantities they aren’t always as careful with their due diligence as you would be when purchasing a tax lien with your own money.
However there is a tax lien investing agent; one that I have recommended for the last 5 years that does sell tax liens to individual investors. And because they are buying for individuals and not big fund companies they are very careful with their due diligence.
The name of the agent is PIPWest and I recently did a webinar with Charles Sells and Don Fullman of PIPWest where they explained the services they offer as a tax lien and redeemable deed agent, buying tax liens for investors in Illinois and redeemable deeds for investors in Georgia, South Carolina, and Texas. They also have secondary Illinois liens available for tax lien investors to purchase. These liens are ready for foreclosure, and you can purchase them from PIP-West and start the foreclosure yourself, or you could hire them to do all the work for you. You can watch the webinar and learn more about the secondary lien market by going to www.TaxLienLady.com/PIPwest-Mar2013.
CLICK HERE for the FAQs about buying secondary liens from PIP-West
Members can get a list of Seconday Tax Liens For Sale here