If you can connect with a property owner that has just lost their property to tax deed sale, then you can definitely reach that same person before it goes to auction and that's far more profitable than trying to get a piece of an overage. Use that skill of being able to connect with such people BEFORE it goes to auction. @@CoffeewithJesusTalk
@@freedom_mentor thank you. I’ve been to your website. I’m not sure how to be a trainee. The book intro was so inspiring. My wife and i are retired educators. We also once ran our own private Christian school for 20 years in a church I founded. We helped a lot of families. Now we run a before/after care in OKC. At 58 and 63 we want more free time. We work from sun up till sundown. It’s hard to find employees. I would love to find something that will help me and my wife to retire in comfort, but enough to keep the ministry of kid care running.
We've had tremendous success in Oklahoma. There are several graduates of my Apprentice Program scattered across the state (these are people that have made more than $500,000 in net profits in this business as a result of my mentoring). Apply to be my Apprentice here: www.freedommentor.com/apprentice @@CoffeewithJesusTalk
what are the statute of limitations when you get one year behind in your property taxes well I h a d a manufacturer double-sided on a piece of property so I freaked out and called a realtor well he made me put 6 000 dollars into escrow for a date that I would have to move out well I w a s out in plenty of time he and his title lady never asked me so when did you move I took it upon myself to say hey I've been out wh r res my 6000 dollars well I never received it he stole my money and I want to sue him and to fi❤n❤d❤ out there w a s more property there th we y never told me a bout it and when I sign my life away my home was paid for but I only got 52,000 thousand dollars on my house I want my money back he made 125,000 off my property and he snuck in a purchase agreement on me while I was drinking I never was told what it was can someone help me im almost t homeless
This is one of the few honest videos, in my opinion. Phil stresses that WORK is involved. Local research is best too. I can't say I learned a lot, I've been doing this for nearly 40 years. I highly recommend this to anyone before they invest.
Eh, it's okay. You sure you've been doing this 40 years? He acts like you have no choice but to risk getting stuck with bad property and lists it as a con. I've only been doing this two years and even I know how to not pick a 6 foot by 200 foot sliver of land.
@@justinclaycomb9618 This video raised more questions than answers. For example i thought that investors were buying the property not lending the money to the county for a couple of years. So is there a way to attain outright full ownership via tax liensales???
@@scrappydogfinance8434 yes just go to a tax auction instead to buy like phil said to do. My friend did this with a pro and he bid on a property and won it a condo for only 20 000. Worth 40 000 no liens gud condition . needed to evict homeowner unfortunately. But it worked for him. I wldnt buy a condo a house is better.
It is rare to see such honesty and forthrightness in a video about realestate. This is extremely well done, very balanced, and very informative! Well done!
I searched for the definition of tax lien for 45 minutes on yo tube and google. I did not undestand any of the them. I prayed to God to open my mind and Lord God directed me to this video and now I understood the definition. May God bless you sir
I already looked into this. Once you pay the property tax you get the certificate. It may take anywhere between 2 to 5 years to get your money back plus interest. Make sure this is money you could spear
You are correct! Tax liens can redeem as long as 5 years... We just put out a webinar on the ins and outs of this strategy... check it out in your free time.
its refreshing to see an actual honest video about real estate investing, and not one that only raves about how awesome it is the whole time and gives vague advice to basically force you into buying their course
Depends on the state some states the bank might try and auction it off after/before they pay back the lien but honestly only about 1% reach foreclosure s
@@silverchariot9180 I think there's like a 2 year thing at least in NJ, where the lien holder can then go to court to take over the property, but you have to keep up with the taxes.NJ taxes are so high, I would not invest here. Plus millions of bankruptcies here. Which puts a pause,sometimes years,on the tax lien holders ability to foreclose.I am no expert but I guess that would mean having to pay those extra years of taxes above what you were expecting.i think it's 18% interest here. Sounds great but how do you get blood out of a rock? I mean, if the lot or house gets taken over by the city because the lien holder could not keep up with the extra taxes, how does that work? would you lose all the money you invested? I'm afraid I have more questions than answers.
just bought 2 lots at auction with no bidders luckily i wanted land is next to my daughters homesite ; i have to let land sit idle for one year ;give the delinquent tax ower time to get property back they will have to pay me 20% plus my original money i fear i am hooked on flipping land now you are a good instructor ; thank you for sharing this powerful knowledge can you talk on quiet titles some
I've been to the tax auction in my state...exciting stuff. I even bid on a plot of land. Its exactly what Phil said. I think if you don't have a lot of money and can only scrape up $2,000-$5,000 it seems like a great way to get started... Even if you do have to wait a year or so before you can foreclose.
@@patrickhunter882 no but you do need to do something profitable with it and have a way into and out of it without crossing someone else's property or crossing dangerous terrain
Thanks for the video. My fiancé wanted to do this to basically "buy a house" for cheap. I always research his ideas to make sure he is well informed before spending hard earned money. This explained so much. Gratitude..... P.S. you just got a new subscriber :)
I can't wait to for my children to start middle school, and start exposing them to the world of investments. It is my obligation to take them to the road of useful knowledge, I can't remember who said it, all I know, I want them to be ahead of the game.
Get the started early! I like your style! -- We just posted a few webinars on tax liens... if you have some free time check it out (subscribe if you like the content)
@@KnowledgeSeeker78491 I was just about to ask how does he get a teenager to give a rats ass about "investments". Had some minor success with mine but i see im not the only one struggling lol
I'm blown away I didn't know about tax lien certificates. Everytime I think I know everything I learn how dumb I am. Thankyou for the video. Your a good teacher 👍
I absolutely had gotten interested in this via one of those high energy guys in a TH-cam ad with a "free seminar" and promisis of can't lose type investing. I don't know anything about investing, but I at least know when something sounds way too good to be true. This video was easy for me, a total ignoramus, to understand the reality of investing in tax liens and I so appreciate the free and unbiased info. Off to check out your other vids now.
One of my friends sold his condo.for exactly the 10K. you mention before.I never be able to realized the process untill I sow your video. Thank you for "iluminated my lamp!!!!!!
Thanks for your content Phil. I’m just now trying to learn about real estate and I love how you explain things. Honesty is the way of teaching and I believe that’s what you are.
This is very helpful to know the cons, thank you. I believe there are more Pros than that since my father has been doing it for quite a while. Helpful knowledge!
Thank you. I just watched a webinar with two guys who made it sound like it was like shooting fish in a barrel. After your video I now realize the pros and cons. Plus like you I would rather invest money in places that can give me a bertter return. Not CD rates. The 18 and 20% rates they talk about is as you said negotiated down. Thanks for your video.
This is an AWESOME VIDEO and he is an amazing teacher on this subject. If you're reading this, watch till the end and take notes. Besides your state/city/county's rules, it's literally all you need to know, moving forward! 💪🏾
Very informative. I was just researching buying into the upcoming tax lien auction. The more I read, the more skeptical I was becoming. "Too good to be true" applies. Not a windfall for reasons described in this video. For those still interested: 1) Every state and county is different, so be certain you understand ALL the details of their procedures and pitfalls and 2) Observe an actual auction first, before slinging any money at them.
Due diligence is definitely a pro as the vast majority will not take the time to perform the needed task. But to me that's an easy barrier of entry. Great video. Will be watching more than once.
i love tax lien investing. You can find VERY cheap fixxer uppers without having to gamble on marketing and flyers. The only drawback is a 12 month redemption waiting period and another 2 months to get the actual tax deed (here in Indiana). But the 12 month redemption period is a good thing because it weeds out the competition that cant tolerate the 12 month wait
You don't have to sit on land that you buy at a tax auction in Indiana. The properties only go to auction once it's actually been foreclosed. I do believe that the county/state has to wait 6 months to a year to put the property up for auction to allow the owner to pay off their taxes, once the foreclosure notice has been given, but you don't have to hold the property once you buy it.
Thank you for that perspective. I love tax liens, but you demonstrated some noteworthy reasons on why I should, perhaps, broaden my horizons and may be graduate to tax deeds. New things always frighten me a little.
If tax liens that were left unpaid years after the redemption period and then sold to the state, would you consider those to be misfits too? I figured the property or land must be worthless if they were left unpaid several years after the redemption period expired.
I live in Tn near Knoxville. I have been investing in tax liens for 3 years now. Each year i have been getting better and better on making wiser decisions by doing my homework . Now with that been said, I have found my biggest problem has been figuring out what to do with personal property that has been left in the house.
Tax deed auctions are typically once a month or even every week. Tax certificate sale is usually once a year. You need to be specific on these cause they are 2 different processes.
To avoid misfits you have to do your homework and research each property. The bad thing is we will get the list a month before and if you are busy you may not have the time to do the research.
Very informative and explained in an easy to understand way. I really feel you know exactly what you are talking about, and you give me a clearer understanding also.
I found a free and clear Vacant property, tax delinquent since 2017. The city has been called to lock and board the property up. The man next door said the old was old with no family.
Thank you for sharing this informative and positive video about the pros and cons of tax lien investing. It's refreshing to see someone acknowledge the benefits of this investment strategy while also highlighting the importance of being aware of the specific rules and regulations in each area. Your video does a great job of summarizing the key points and providing helpful insights for those interested in exploring tax lien investing. Keep up the great work!
You have to consider you will have to pay the following year because in Georgia the homeowner has a year to redeem the lien by paying the tax plus what your lien costs were along with 20 percent guaranted interest and you would have to be able to pay the next year in order to maintain the lien if it is not redeemed
Thank you I was wondering about this. In Illinois they have 2.5 years redemption period, and I wondered if we had to pay every year's tax lien balance to be qualified for the deed redemption if ultimately the owner never pays.
@@SFMsjojohi Jono, not sure if you invested in the Illinois tax lien, I’m also from Illinois and interested in the Tax lien investment. I have some questions if you can help for the beginner like me. Thanks in advance.
This guy is actually interesting to watch , lot of value on this content . Thank you for your passion, i really don’t have nothing to do with all this matter, im a musician, metalDrummer , but i recognize who is successful by the way they become what they are. Nice job man
Who pays you back with the interest, The property owner or the city? Once you buy a tax lien does the buyer have to do any type of follow up with the property owner to make sure he's paid back?
Was wondering about tax liens because I heard Robert Kiyosaki Talking about it and got interested. This was incredibly insightful and were the exact kind of things I wanted to know about before diving into it. I can tell its hot were Phil is filming judging by the drop of sweat that protruded bellow his nose halfway through the video lol
Hi phil .. I live in New Orleans . I did take advantage of buying property at a tax sale . Actually we did 14 of them . Only one of them have is not renovated since Hurricane Katrina. And since it's not renovated it's consider blighted and I had to only wait 18 months before I can quiet the title . My question is can I quiet the title and petition the court without hiring a lawyer . ?? If so what do I file with the court to get ownership.
Lisa Kennedy I live in NOLA as well and purchased a tax sale certificate which is abandoned since Katrina. After doing more research on the redemption period expiration on "blighted" properties, I've discovered that there is a difference between a "recordation" of blight and a "declaration " of blight. The 18 month redemption period applies to declared blight which defaults the redemption period back to 3 years if the house is recorded and not declared. I was so pissed to find out that NOLA has so much red tape in the terms used. The homeowner or representative has paid the taxes due to the city to redeem and I am in the process of gathering receipts of all expenses beyond the taxes that I paid. Let me know how you made out and what steps or legal assistance you received. The city is set up for investors to profit, not the citizens who were born and raised in NOLA.
Thank you for sharing this video. I watched another video about tax lien certificate investing and the guy made it seem like investing in tax liens is like a Gold Mine.
Phil, Thanks for putting this together, this is great information. I think what is also very useful is if people will read comments and your response to those comments gives so much more insight.
This was a very helpful video on the subject. I am wanting to dip into investing in things like tax lien, etc... And you have given some very key advice such as localize issue and studying the competition. Thank you again.
Thanks so much! Very informative and to the point. I'm currently considering purchasing tax lien certificates. What I would like to add is that you don't have the high fear factor that comes along with investing in the the stock market. Considering all that you have said I would classify it as a low risk investment. Yes, there is competition but at least you get all your money refunded if you're not granted a purchase. I'm going to give the tax lien certificate investment 2 thumbs up, without having even purchased one yet. But I'll be trying my hand at it in 2014. Thanks again!
Phil, thank you so much for this video, I am a real estate agent and instructor and in the last 2 years i got interested on this investment but did not want to invest on it until I have good acknowledge, your video gave me a better window I will purchase your book. Thanks
When you said you personally don't put your own money into tax liens becasue "You could take 10k and give it to a home owner who absolutely needs to get out of the house today" Could you explain on that a little? How do you find someone like this. Thanks!
Cameron Nafziger ask yourself, do you ever in you life met someone who needed to get out of a house they own for $10k? If you do let know because I have 10k under my mattress and I'd love to buy them out. That answer your question about where you find those people.
Hello Phil. I have watched quite a few videos of yours and really like your style and content. As for liquidity of tax liens, you can assign them to someone, so there is liquidity in them (although many times the owner of a tax lien will have to sell their tax lien at a discount). It's basically assignment of contract. That is essentially what the Tax Collector is doing when someone wins the bid for the tax lien: the county assigns them to you. Keep up the great videos and posts.
Well spoken! The problem is that most lay people would never figure out how to find buyers of tax lien assignments nor be able to pull it off. So for the vast majority of people who will ever watch this, they are basically illiquid to them.
@@freedom_mentor hi ... once i purchase a tax lien, and i end up getting the property because the owner never paid. do i get a QUIT CLAIM DEED or A WARRANTY DEED?
Good video, I didn't have to buy a program to tell me the same thing you provided for free. Im a hands on buyer myself. I learned flipping cars the same way. Research, research and more research before buying.
I bought some tax certificates for fun in 2005 and totally forgot to apply for tax deeds when applicable. I received most of checks but one of them still has good taxable value, and it was sold in 2007, but I didn't receive any interest check, why? Thanks for sharing your knowledge
I saw those programs on late night TV for get rich quick through tax liens so I started researching it myself years ago. I found that in an overwhelming number of states and counties that you only get the opportunity to own the home if you foreclose on it yourself for the tax debt or if the county puts it up for auction through the tax deed sales....but, like you said, you HAVE to be the highest bidder at the auction. So, now you've already invested the original amount(s) of money and the time (2-3 years) with no cash flow just to be outbid by some other investor or the bank or whoever.
+Sam Priddy You don't understand the process. Once you are the winning bidder, after the statutory holding period (1 year for my county), you can foreclose and own the property. There is no auction after you hold the property.
+Banjo Ninja you are in one of the few counties that allow you to simply take the property in that manner. As I said I have researched this and spoken to many county clerks and real estate lawyers about tax liens and the process tends to be pretty much like this: step 1, you bid on the tax lien itself. step 2, you win the lien. 3, you notify the owner of the home that you hold a lien on their property due to taxes and they must pay you or you will foreclose on the property. 4, eventually over time if they do not pay you back your investment plus the interest you actually do foreclose. 5, after foreclosure the county will put the property up for auction and now if you want this house bad enough you have to bid on it again at this auction. and it's usually 2- 3 years not just after 1. You, my friend, find yourself in one of the very few counties that I have been searching for for several years. Where is this county? and are there any houses there that are worth it?
+Sam Priddy Wow, it seems like those counties really don't want to sell the properties. That would be a royal pain. I am in GA and it's that way all over the state from what I understand. I've heard FL is pretty good too for tax deeds. I've had some initial success buying a vacant land tax lien (got a $150k property for $7k) but the competition for the houses is pretty fierce so I've tried to find a niche. Every auction I've been to they bid up the prices to more than I'm willing to pay, which is typical for what I've seen at auctions. I can get deals like that buying REO without the hassle of dealing with a tax lien. From my experience so far, the real trick is finding the gems that everyone is ignoring and that's what I did with my first deal. Hopefully I can repeat in the future.
Hi Bill, like your style of explaining things, have never invested in tax deeds or foreclosures or anythings like this but i'm thinking about it. Thanks the information.
Good video Phil. I got a question. How can the interest be guaranteed if say the property turns out a misfit and no one buys it, where will the county in this case get the money to pay the investor back his money + interest?
Hello Phil. I'm new to the real estate industry. I Inherited a property that was 2 years late on taxes but I was told an investor paid for it. How can I find out if my property is going to be or has been in a tax foreclosure sale in Miami-Dade County? Is there a cap on the amount an investor can price on a tax lien?
Hey Phil Great Video, on 13:36 you mention you would rather give money to a homeowner that has to vacate their property immediately, what are you referring to?
By paying the Seller for their Deed, you become the owner of the property and (or you get their Right of Redemption) and now you can do whatever you want with the property (sell it or rent it).
So, what about the strategy of buying tax cert’s on property that isn’t a full on misfit but different enough for the big investor to pass because it doesn’t fit their formula but still has potential for a smaller investor?
What Phil doesn’t mention is that tax deeds are best deals you can get peridot point blank, its the “investors secret”, been doing it a year now and love it, while bank foreclosures start at price fairly close to market value of the property, tax deeds start at owed taxes, we talking about 300k house starting at 10k bid, insane deals.
They tend to have the same bidders as the foreclosure auctions so the prices are almost always bid up to the market amount. One hiccup with tax foreclosures is that oftentimes you have to pay a few thousand more, after the auction, for quiet title to obtain clear title.
Around 13:30 you mention that you can give it to a homeowner directly instead of a tax lien, I can't wrap my head around this concept, could you give an example? How do you approach a homeowner, or where would you look when searching for one that needs to get out of the house asap? I need to do more research on how to flip houses in general, but finding that kind of situation seems unlikely if not impossible to me right now as I'm not sure how/where to search
I live in Texas, there are many rual properties that have been abandoned for one reason or another. Can I simply check with the county and see if there are back taxes owed.on that particular property?
Great video - What is the very first step in getting to know this tax lean business in my local area in Prince William county in Virginia? Find out when how the list comes out and how to get a copy of the list of tax liens?
Hi my name is Francisco my question is if my goal is to get a property. Bying the lien certificate it won't make my way easier to get the property on my name?
is it possible to find a list of properties on the verge of going to tax forclosure and then trying to buy the properties from the owners before they get tax foreclosed on?
I'm in Georgia and I am considering purchasing a tax lien home to complete repairs and eventually live in with my family and I. My focus is a property with unpaid taxes, abandoned single family home without a mortage, absolutely no liens.
Make sure you learn about the right of redemption period with tax deed sale properties in Georgia so you don't fix up the house and have it swooped up from under neath you. Learn the rules of the game.
Thank you for responding. In Georgia it is one year. They owner will owe you 120% after the first year then you are allowed to file the court documents for complete ownership, there afterwards you have the right collect rent, evict the tenat or however you choose to deal with matter legally.
Also, I know that even if you pay the taxes you are not allowed on the property until the deal is final. Sonia it true that you won't really know what type of condition the property is in until after the redemption is completed? So I could very well be taking a risk , I think it's worth it if can get a loan to do so the repairs
In the state of California I heard that if there is a mortgage and the property goes to auction for property tax default any mortgage loan tied to the property is null and void? Seems like there is something missing. Any Mechanics lien is also removed, except for IRS Tax liens. Trying to understand this but seems too good to be true if that the mortgage is null and voided. If so, why wouldnt the lender for example pay the property tax and then put the loan into forclosure and than resell it thesemlves.
Good video. I am dying to buy a small little house on my block to do my first flip. I got the info that they will be moving and the house will be going on foreclosure soon. The houses here in my neighborhood, Natick, MA. goes BTW 450K to 650K. I did a little research and I printed everything among all, a Mass Tax lien 9K, a notice of federal tax lien 23k. My milion $$ question is: What is the best strategy to be able to buy this house before goes officially on foreclosure.??
If you buy a tax lien and it turns out to be a misfit. What do you do? Cut your losses and don't pay the property tax? or keep paying the property taxes in hopes you can one day sell it.
![[LIVE] : ONE ลุมพินี 87 วันนี้!! คู่เอก "ก้องชัย vs โชคปรีชา"](http://i.ytimg.com/vi/YN6e7HVnekw/mqdefault.jpg)
Learn how to do this right with the help of a mentor. Apply to my Apprentice Program here: www.freedommentor.com/apprentice
What about the overage business? Is there any money trying to find money after the foreclosure and returning it to the person who lost their property?
If you can connect with a property owner that has just lost their property to tax deed sale, then you can definitely reach that same person before it goes to auction and that's far more profitable than trying to get a piece of an overage. Use that skill of being able to connect with such people BEFORE it goes to auction. @@CoffeewithJesusTalk
@@freedom_mentor thank you. I’ve been to your website. I’m not sure how to be a trainee. The book intro was so inspiring. My wife and i are retired educators. We also once ran our own private Christian school for 20 years in a church I founded. We helped a lot of families. Now we run a before/after care in OKC. At 58 and 63 we want more free time. We work from sun up till sundown. It’s hard to find employees. I would love to find something that will help me and my wife to retire in comfort, but enough to keep the ministry of kid care running.
We've had tremendous success in Oklahoma. There are several graduates of my Apprentice Program scattered across the state (these are people that have made more than $500,000 in net profits in this business as a result of my mentoring). Apply to be my Apprentice here: www.freedommentor.com/apprentice @@CoffeewithJesusTalk
what are the statute of limitations when you get one year behind in your property taxes well I h a d a manufacturer double-sided on a piece of property so I freaked out and called a realtor well he made me put 6 000 dollars into escrow for a date that I would have to move out well I w a s out in plenty of time he and his title lady never asked me so when did you move I took it upon myself to say hey I've been out wh r res my 6000 dollars well I never received it he stole my money and I want to sue him and to fi❤n❤d❤ out there w a s more property there th we y never told me a bout it and when I sign my life away my home was paid for but I only got 52,000 thousand dollars on my house I want my money back he made 125,000 off my property and he snuck in a purchase agreement on me while I was drinking I never was told what it was can someone help me im almost t homeless
This is one of the few honest videos, in my opinion.
Phil stresses that WORK is involved. Local research is best too.
I can't say I learned a lot, I've been doing this for nearly 40 years.
I highly recommend this to anyone before they invest.
Hi Fred have you been doing taxe lien and deed for nearly 40 years? and in which state.
Eh, it's okay. You sure you've been doing this 40 years? He acts like you have no choice but to risk getting stuck with bad property and lists it as a con. I've only been doing this two years and even I know how to not pick a 6 foot by 200 foot sliver of land.
@@justinclaycomb9618 This video raised more questions than answers. For example i thought that investors were buying the property not lending the money to the county for a couple of years. So is there a way to attain outright full ownership via tax liensales???
@@scrappydogfinance8434 I think some states have tax lien sales, and other states have tax deed sales. The latter you're actually buying the property.
@@scrappydogfinance8434 yes just go to a tax auction instead to buy like phil said to do. My friend did this with a pro and he bid on a property and won it a condo for only 20 000. Worth 40 000 no liens gud condition . needed to evict homeowner unfortunately. But it worked for him. I wldnt buy a condo a house is better.
It is rare to see such honesty and forthrightness in a video about realestate. This is extremely well done, very balanced, and very informative! Well done!
I searched for the definition of tax lien for 45 minutes on yo tube and google. I did not undestand any of the them. I prayed to God to open my mind and Lord God directed me to this video and now I understood the definition. May God bless you sir
thank you Phil for telling the truth and not making everything sound so "effortless".
I already looked into this. Once you pay the property tax you get the certificate. It may take anywhere between 2 to 5 years to get your money back plus interest. Make sure this is money you could spear
In our area its 12% a day after 3 years its yours.
@@ToomersCorner where are you located?
CENTRAL Alabama
You are correct! Tax liens can redeem as long as 5 years... We just put out a webinar on the ins and outs of this strategy... check it out in your free time.
@@ToomersCorner You live near Birmingham? I have thought about investing in some liens around there.
its refreshing to see an actual honest video about real estate investing, and not one that only raves about how awesome it is the whole time and gives vague advice to basically force you into buying their course
Good to see SOMEONE who isnt saying, " Go buy the tax lien package....you'll make MILLIONS!" I respect that.👍
Thanks!
Amazing and Great advice. Finally someone not trying to sell you a product or video. Thank you you helped me out a lot
See 17:22
UMommy mwas morning k
P you
UThank umk
@@kiararashea8429.
What site can I buy tax liens ??
I’m going after my moms house because she’s screwed me over all my life, this has helped a ton thanks!
I wonder what the look on her face is going to be like when she finds out you took her house 😂
Sounds like Jessie pinkman when he bought his parents house lol
@@bwilkesiii Why don’t you wiggle yourself on down to 400, and we have a deal?
😆
LMFAO
if you don't have that much money to invest, the only way tax liens would pay off,is only if owner never pays and you end up owning the property..
Depends on the state some states the bank might try and auction it off after/before they pay back the lien but honestly only about 1% reach foreclosure s
How long does it take for you to own the property?
@@silverchariot9180 qtna
@@silverchariot9180 I think there's like a 2 year thing at least in NJ, where the lien holder can then go to court to take over the property, but you have to keep up with the taxes.NJ taxes are so high, I would not invest here. Plus millions of bankruptcies here. Which puts a pause,sometimes years,on the tax lien holders ability to foreclose.I am no expert but I guess that would mean having to pay those extra years of taxes above what you were expecting.i think it's 18% interest here. Sounds great but how do you get blood out of a rock? I mean, if the lot or house gets taken over by the city because the lien holder could not keep up with the extra taxes, how does that work? would you lose all the money you invested? I'm afraid I have more questions than answers.
@@pattiannepascual that's not how it works. You would either get your investment with interest or you would become owner of property
just bought 2 lots at auction with no bidders luckily i wanted land is next to my daughters homesite ; i have to let land sit idle for one year ;give the delinquent tax ower time to get property back they will have to pay me 20% plus my original money i fear i am hooked on flipping land now you are a good instructor ; thank you for sharing this powerful knowledge can you talk on quiet titles some
+michael bailey Talk to an attorney who specializes in that.
What state are you in ? I'm trying to find the laws in my state . I'm in North Carolina
7 years later, thanks for the advice!
I've been to the tax auction in my state...exciting stuff. I even bid on a plot of land. Its exactly what Phil said. I think if you don't have a lot of money and can only scrape up $2,000-$5,000 it seems like a great way to get started... Even if you do have to wait a year or so before you can foreclose.
U dont hav ta put a new roof on land, dont hav ta mow the woods
@@patrickhunter882 no but you do need to do something profitable with it and have a way into and out of it without crossing someone else's property or crossing dangerous terrain
Thanks for the video. My fiancé wanted to do this to basically "buy a house" for cheap. I always research his ideas to make sure he is well informed before spending hard earned money. This explained so much. Gratitude.....
P.S. you just got a new subscriber :)
You sound like my wife lol.
So after watching did you agree with him or not??
How is the progress??
What happened
What a great partner!
I can't wait to for my children to start middle school, and start exposing them to the world of investments. It is my obligation to take them to the road of useful knowledge, I can't remember who said it, all I know, I want them to be ahead of the game.
Get the started early! I like your style! -- We just posted a few webinars on tax liens... if you have some free time check it out (subscribe if you like the content)
Absolutely a great idea! Do this instead of pushing them into college
Good luck... My son ignores everything I introduce to him, but I still introduce it to him
@@KnowledgeSeeker78491 I was just about to ask how does he get a teenager to give a rats ass about "investments". Had some minor success with mine but i see im not the only one struggling lol
I'm blown away I didn't know about tax lien certificates. Everytime I think I know everything I learn how dumb I am. Thankyou for the video. Your a good teacher 👍
I absolutely had gotten interested in this via one of those high energy guys in a TH-cam ad with a "free seminar" and promisis of can't lose type investing. I don't know anything about investing, but I at least know when something sounds way too good to be true. This video was easy for me, a total ignoramus, to understand the reality of investing in tax liens and I so appreciate the free and unbiased info. Off to check out your other vids now.
Thanks! Have you gone through our course? If not, check it out here: courses.freedommentor.com/
One of my friends sold his condo.for exactly the 10K. you mention before.I never be able to realized the process untill I sow your video. Thank you for "iluminated my lamp!!!!!!
"Sold"??? Did you mean "Bought"???
Thanks for your content Phil. I’m just now trying to learn about real estate and I love how you explain things. Honesty is the way of teaching and I believe that’s what you are.
This is very helpful to know the cons, thank you. I believe there are more Pros than that since my father has been doing it for quite a while. Helpful knowledge!
JET FPC in which state your father did it?
fill me in on some more pros
@@tayloz101Some states have a penalty attached to a tax lien as well. That’s another Pro
Thank you. I just watched a webinar with two guys who made it sound like it was like shooting fish in a barrel. After your video I now realize the pros and cons. Plus like you I would rather invest money in places that can give me a bertter return. Not CD rates. The 18 and 20% rates they talk about is as you said negotiated down. Thanks for your video.
Phil you did a job explaining the pros and cons. Thanks for the enlightment.
This is an AWESOME VIDEO and he is an amazing teacher on this subject. If you're reading this, watch till the end and take notes. Besides your state/city/county's rules, it's literally all you need to know, moving forward! 💪🏾
Very helpful. I am going through the thought process right now. I have to decide whether I'm going to do the tax lien or the tax deed.
Appreciate ur honesty. Keep me from all the scams of investing classes.
Very informative. I was just researching buying into the upcoming tax lien auction. The more I read, the more skeptical I was becoming. "Too good to be true" applies. Not a windfall for reasons described in this video. For those still interested: 1) Every state and county is different, so be certain you understand ALL the details of their procedures and pitfalls and 2) Observe an actual auction first, before slinging any money at them.
Great insight into tax lien investment! I learned a lot more in 17 minutes here than 3 hours from others!!!
Thank you! Have you gone through this training yet? courses.freedommentor.com
I live in Florida and I'm so grateful I found this video before I got into this. Thank you for this great video
Due diligence is definitely a pro as the vast majority will not take the time to perform the needed task. But to me that's an easy barrier of entry.
Great video. Will be watching more than once.
i love tax lien investing. You can find VERY cheap fixxer uppers without having to gamble on marketing and flyers. The only drawback is a 12 month redemption waiting period and another 2 months to get the actual tax deed (here in Indiana). But the 12 month redemption period is a good thing because it weeds out the competition that cant tolerate the 12 month wait
That's a long wait. I would argue that finding deals that you can act on immediately is a MUCH better model.
You don't have to sit on land that you buy at a tax auction in Indiana. The properties only go to auction once it's actually been foreclosed. I do believe that the county/state has to wait 6 months to a year to put the property up for auction to allow the owner to pay off their taxes, once the foreclosure notice has been given, but you don't have to hold the property once you buy it.
Thank you for that perspective. I love tax liens, but you demonstrated some noteworthy reasons on why I should, perhaps, broaden my horizons and may be graduate to tax deeds. New things always frighten me a little.
Marsha Klein tax deeds?
Excellent video. Trying to get a house to live in for cheap, so I am checking out different options. Thanks for info
If tax liens that were left unpaid years after the redemption period and then sold to the state, would you consider those to be misfits too? I figured the property or land must be worthless if they were left unpaid several years after the redemption period expired.
I live in Tn near Knoxville. I have been investing in tax liens for 3 years now. Each year i have been getting better and better on making wiser decisions by doing my homework . Now with that been said, I have found my biggest problem has been figuring out what to do with personal property that has been left in the house.
would you have a listing but you don't have the addresses to the property. how do you go about getting it
Use the Tax Parcel ID to cross reference with the tax office to figure it out
Good info and I like that you got right into it. No fluff. Clicked the bell.
I like your straight forward on the subject. Helps gives a perspective and subjective on investing in tax lien
This video by Phil is very informative and honest. Thank you Phil
Hi Phil. Thank you for this informative video. Could you please elaborate on the investment that you prefer and referenced. Thank you
Sir, do you give any seminars on Tax Deed investing in Dallas? I really like and can understand your teaching methods!
Thank you for this information. This is a very helpful video clarifying the pros and cons of this type of investment.
This was really helpful. Everyone just talks about the pros but not give you the things to watch out for
You did such a wonderful job explaining. Very clear and understandable. Thank you so much.
Thank you just started getting into this! Made the foggy road way more clearer listening to you!
Tax deed auctions are typically once a month or even every week. Tax certificate sale is usually once a year. You need to be specific on these cause they are 2 different processes.
Why don't you just explain the difference for us....
To avoid misfits you have to do your homework and research each property. The bad thing is we will get the list a month before and if you are busy you may not have the time to do the research.
Very informative and explained in an easy to understand way. I really feel you know exactly what you are talking about, and you give me a clearer understanding also.
I found a free and clear Vacant property, tax delinquent since 2017. The city has been called to lock and board the property up. The man next door said the old was old with no family.
Yes, You have to ask yourself why someone would let their house go for just a few thousand owed in property tax.
Thank you for sharing this informative and positive video about the pros and cons of tax lien investing. It's refreshing to see someone acknowledge the benefits of this investment strategy while also highlighting the importance of being aware of the specific rules and regulations in each area. Your video does a great job of summarizing the key points and providing helpful insights for those interested in exploring tax lien investing. Keep up the great work!
You have to consider you will have to pay the following year because in Georgia the homeowner has a year to redeem the lien by paying the tax plus what your lien costs were along with 20 percent guaranted interest and you would have to be able to pay the next year in order to maintain the lien if it is not redeemed
Thank you I was wondering about this. In Illinois they have 2.5 years redemption period, and I wondered if we had to pay every year's tax lien balance to be qualified for the deed redemption if ultimately the owner never pays.
@@SFMsjojohi Jono, not sure if you invested in the Illinois tax lien, I’m also from Illinois and interested in the Tax lien investment. I have some questions if you can help for the beginner like me. Thanks in advance.
This guy is actually interesting to watch , lot of value on this content . Thank you for your passion, i really don’t have nothing to do with all this matter, im a musician, metalDrummer , but i recognize who is successful by the way they become what they are.
Nice job man
Who pays you back with the interest, The property owner or the city?
Once you buy a tax lien does the buyer have to do any type of follow up with the property owner to make sure he's paid back?
If owner files bankrupts does that take tax lien away?
No.
Was wondering about tax liens because I heard Robert Kiyosaki Talking about it and got interested. This was incredibly insightful and were the exact kind of things I wanted to know about before diving into it. I can tell its hot were Phil is filming judging by the drop of sweat that protruded bellow his nose halfway through the video lol
😂😃😂
😄
Came here for the same reason...
That was a very balanced assessment. I'm going to look further and maybe dip my toe in. It's great to know the risks! Thanks.
Hi phil .. I live in New Orleans . I did take advantage of buying property at a tax sale . Actually we did 14 of them . Only one of them have is not renovated since Hurricane Katrina. And since it's not renovated it's consider blighted and I had to only wait 18 months before I can quiet the title . My question is can I quiet the title and petition the court without hiring a lawyer . ?? If so what do I file with the court to get ownership.
Reach out to an attorney who handles these situations.
Lisa Kennedy I live in NOLA as well and purchased a tax sale certificate which is abandoned since Katrina. After doing more research on the redemption period expiration on "blighted" properties, I've discovered that there is a difference between a "recordation" of blight and a "declaration " of blight. The 18 month redemption period applies to declared blight which defaults the redemption period back to 3 years if the house is recorded and not declared. I was so pissed to find out that NOLA has so much red tape in the terms used. The homeowner or representative has paid the taxes due to the city to redeem and I am in the process of gathering receipts of all expenses beyond the taxes that I paid. Let me know how you made out and what steps or legal assistance you received. The city is set up for investors to profit, not the citizens who were born and raised in NOLA.
Thank you for sharing this video. I watched another video about tax lien certificate investing and the guy made it seem like investing in tax liens is like a Gold Mine.
Phil, Thanks for putting this together, this is great information. I think what is also very useful is if people will read comments and your response to those comments gives so much more insight.
This was a very helpful video on the subject. I am wanting to dip into investing in things like tax lien, etc... And you have given some very key advice such as localize issue and studying the competition. Thank you again.
hello thank you for the knowledge but my question is what are we bidding for in a tax lien bid?
Thanks so much! Very informative and to the point. I'm currently considering purchasing tax lien certificates. What I would like to add is that you don't have the high fear factor that comes along with investing in the the stock market. Considering all that you have said I would classify it as a low risk investment. Yes, there is competition but at least you get all your money refunded if you're not granted a purchase. I'm going to give the tax lien certificate investment 2 thumbs up, without having even purchased one yet. But I'll be trying my hand at it in 2014. Thanks again!
Not so fast. What if they don't redeem? What if you get stuck with the property? Sometimes getting stuck with a property is not a good situation.
I am going to make sure that it's property that I wouldn't mind being stuck and I'm only focusing on single family homes
Phil Pustejovsky Thanks for the information I look into it for Sacramento California.
@@benjaminwilliams2741 Hey how did you do in your tax lien investing? It’s been 8 years I wonder if it’s worth it?
Phil, thank you so much for this video, I am a real estate agent and instructor and in the last 2 years i got interested on this investment but did not want to invest on it until I have good acknowledge, your video gave me a better window I will purchase your book. Thanks
Hi i would like to get into real estate, I was a an agent back home in africa
When you said you personally don't put your own money into tax liens becasue "You could take 10k and give it to a home owner who absolutely needs to get out of the house today" Could you explain on that a little? How do you find someone like this.
Thanks!
Explained in much more detail in this video: th-cam.com/video/T5YR1zN8Mqc/w-d-xo.html
Cameron Nafziger ask yourself, do you ever in you life met someone who needed to get out of a house they own for $10k? If you do let know because I have 10k under my mattress and I'd love to buy them out. That answer your question about where you find those people.
@@zskywalker23z what your address.under your mattress you say.😏😏😂
Hello Phil. I have watched quite a few videos of yours and really like your style and content. As for liquidity of tax liens, you can assign them to someone, so there is liquidity in them (although many times the owner of a tax lien will have to sell their tax lien at a discount). It's basically assignment of contract. That is essentially what the Tax Collector is doing when someone wins the bid for the tax lien: the county assigns them to you. Keep up the great videos and posts.
Well spoken! The problem is that most lay people would never figure out how to find buyers of tax lien assignments nor be able to pull it off. So for the vast majority of people who will ever watch this, they are basically illiquid to them.
@@freedom_mentor hi ... once i purchase a tax lien, and i end up getting the property because the owner never paid. do i get a QUIT CLAIM DEED or A WARRANTY DEED?
Good video, I didn't have to buy a program to tell me the same thing you provided for free. Im a hands on buyer myself. I learned flipping cars the same way. Research, research and more research before buying.
I bought some tax certificates for fun in 2005 and totally forgot to apply for tax deeds when applicable. I received most of checks but one of them still has good taxable value, and it was sold in 2007, but I didn't receive any interest check, why? Thanks for sharing your knowledge
Because you never asked for it. They quieted title and you got nothing.
Hi, Phil, where can I learn about the other way of investing, the one you prefer and you talked briefly about, thank you
Learn about it here: th-cam.com/video/T5YR1zN8Mqc/w-d-xo.html
“In my state of Florida” DAMMIT LOL that’s where I’m at every time man
I saw those programs on late night TV for get rich quick through tax liens so I started researching it myself years ago. I found that in an overwhelming number of states and counties that you only get the opportunity to own the home if you foreclose on it yourself for the tax debt or if the county puts it up for auction through the tax deed sales....but, like you said, you HAVE to be the highest bidder at the auction. So, now you've already invested the original amount(s) of money and the time (2-3 years) with no cash flow just to be outbid by some other investor or the bank or whoever.
+Sam Priddy You don't understand the process. Once you are the winning bidder, after the statutory holding period (1 year for my county), you can foreclose and own the property. There is no auction after you hold the property.
+Banjo Ninja you are in one of the few counties that allow you to simply take the property in that manner. As I said I have researched this and spoken to many county clerks and real estate lawyers about tax liens and the process tends to be pretty much like this: step 1, you bid on the tax lien itself. step 2, you win the lien. 3, you notify the owner of the home that you hold a lien on their property due to taxes and they must pay you or you will foreclose on the property. 4, eventually over time if they do not pay you back your investment plus the interest you actually do foreclose. 5, after foreclosure the county will put the property up for auction and now if you want this house bad enough you have to bid on it again at this auction. and it's usually 2- 3 years not just after 1. You, my friend, find yourself in one of the very few counties that I have been searching for for several years. Where is this county? and are there any houses there that are worth it?
+Sam Priddy Wow, it seems like those counties really don't want to sell the properties. That would be a royal pain. I am in GA and it's that way all over the state from what I understand. I've heard FL is pretty good too for tax deeds. I've had some initial success buying a vacant land tax lien (got a $150k property for $7k) but the competition for the houses is pretty fierce so I've tried to find a niche. Every auction I've been to they bid up the prices to more than I'm willing to pay, which is typical for what I've seen at auctions. I can get deals like that buying REO without the hassle of dealing with a tax lien.
From my experience so far, the real trick is finding the gems that everyone is ignoring and that's what I did with my first deal. Hopefully I can repeat in the future.
Hi Bill, like your style of explaining things, have never invested in tax deeds or foreclosures or anythings like this but i'm thinking about it. Thanks the information.
2022 and this is still great advice
Good video Phil. I got a question. How can the interest be guaranteed if say the property turns out a misfit and no one buys it, where will the county in this case get the money to pay the investor back his money + interest?
Hello Phil. I'm new to the real estate industry. I Inherited a property that was 2 years late on taxes but I was told an investor paid for it. How can I find out if my property is going to be or has been in a tax foreclosure sale in Miami-Dade County? Is there a cap on the amount an investor can price on a tax lien?
Well done! Very easy to understand and very honest.
Thank you for making this video! I’m very new to this and planning to invest in tax lien soon! This video’s sure very helpful!
It is Eye Opener. It removed my misconception. One have to have full knowledge how Tax Liens works.
Excellent and honest content. Thank you.
You're welcome! Would you like to see us produce any other content ?
Hey Phil Great Video, on 13:36 you mention you would rather give money to a homeowner that has to vacate their property immediately, what are you referring to?
By paying the Seller for their Deed, you become the owner of the property and (or you get their Right of Redemption) and now you can do whatever you want with the property (sell it or rent it).
Any advice for Canadians?
Thank you for your very honest information. I didn't realize how much I didn't know until I watched your video.
thanks for your wisdom
So, what about the strategy of buying tax cert’s on property that isn’t a full on misfit but different enough for the big investor to pass because it doesn’t fit their formula but still has potential for a smaller investor?
Thank You Phil I like PROS AND CONS in any explanations
Thank you for the honest insight into this subject. There's a lot of advertising out there about how it's a get rich easy from home.
What Phil doesn’t mention is that tax deeds are best deals you can get peridot point blank, its the “investors secret”, been doing it a year now and love it, while bank foreclosures start at price fairly close to market value of the property, tax deeds start at owed taxes, we talking about 300k house starting at 10k bid, insane deals.
They tend to have the same bidders as the foreclosure auctions so the prices are almost always bid up to the market amount. One hiccup with tax foreclosures is that oftentimes you have to pay a few thousand more, after the auction, for quiet title to obtain clear title.
Around 13:30 you mention that you can give it to a homeowner directly instead of a tax lien, I can't wrap my head around this concept, could you give an example? How do you approach a homeowner, or where would you look when searching for one that needs to get out of the house asap? I need to do more research on how to flip houses in general, but finding that kind of situation seems unlikely if not impossible to me right now as I'm not sure how/where to search
I live in Texas, there are many rual properties that have been abandoned for one reason or another. Can I simply check with the county and see if there are back taxes owed.on that particular property?
Great video - What is the very first step in getting to know this tax lean business in my local area in Prince William county in Virginia? Find out when how the list comes out and how to get a copy of the list of tax liens?
Yes.
I found out that VA does not issue tax liens, in any county. The only do tax forclosure auctions. What state might you recommend investegation?
Was curious on process. Thank You for your detailed non bias explanation with full roundabout scenarios. Thanks buddy great Day !
Hi my name is Francisco my question is if my goal is to get a property. Bying the lien certificate it won't make my way easier to get the property on my name?
Thank you Phil for providing such an amazing video about tax lien investing.
is it possible to find a list of properties on the verge of going to tax forclosure and then trying to buy the properties from the owners before they get tax foreclosed on?
Of course. That's what I do.
Man you are great! If a person has say 5,000 dollars to spend what is the best real estate investment to start with?
+El Light This two part video series answers that question: th-cam.com/video/jB7TeATB4iE/w-d-xo.html
Thanks immensely for all the information✨💞
I'm in Georgia and I am considering purchasing a tax lien home to complete repairs and eventually live in with my family and I. My focus is a property with unpaid taxes, abandoned single family home without a mortage, absolutely no liens.
Make sure you learn about the right of redemption period with tax deed sale properties in Georgia so you don't fix up the house and have it swooped up from under neath you. Learn the rules of the game.
Thank you for responding. In Georgia it is one year. They owner will owe you 120% after the first year then you are allowed to file the court documents for complete ownership, there afterwards you have the right collect rent, evict the tenat or however you choose to deal with matter legally.
Also, I know that even if you pay the taxes you are not allowed on the property until the deal is final. Sonia it true that you won't really know what type of condition the property is in until after the redemption is completed? So I could very well be taking a risk , I think it's worth it if can get a loan to do so the repairs
Felicia Grisham
Hello, Felicia. May I know what you mean by “no lien”? Thank you.
In the state of California I heard that if there is a mortgage and the property goes to auction for property tax default any mortgage loan tied to the property is null and void? Seems like there is something missing. Any Mechanics lien is also removed, except for IRS Tax liens. Trying to understand this but seems too good to be true if that the mortgage is null and voided. If so, why wouldnt the lender for example pay the property tax and then put the loan into forclosure and than resell it thesemlves.
Good video. I am dying to buy a small little house on my block to do my first flip. I got the info that they will be moving and the house will be going on foreclosure soon. The houses here in my neighborhood, Natick, MA. goes BTW 450K to 650K. I did a little research and I printed everything among all, a Mass Tax lien 9K, a notice of federal tax lien 23k. My milion $$ question is: What is the best strategy to be able to buy this house before goes officially on foreclosure.??
Contact the owner and buy it from them before the foreclosure auction. We do it all the time. Including in MA.
If you buy a tax lien and it turns out to be a misfit. What do you do? Cut your losses and don't pay the property tax? or keep paying the property taxes in hopes you can one day sell it.
Depends. Better to have never gotten into that situation.