What are the Best States to Invest in Tax Liens and Deeds?
If you know anything about me you know that Texas is by far my favourite place to invest in Tax Liens.
Why?
Because not only is the economy strong but also the incentive the state gives to tax lien investors is enormous! Really only two things can happen every time you invest in a tax lien in Texas:
- The former owner has 6 months to pay you back what you bought the property for at auction + 25% interest penalty
Or
- If they fail to pay you the purchase price and 25% interest penalty then you can sell the house, rent it out etc.
Not bad!
Also, you can collect rent the moment you get the property at auction meaning most of the properties we get at auction in Texas cash flow from day one.
So, what are some of the other states that are very lucrative for Tax Lien Investors?
Here are my other favourite states:
Florida:
Florida Tax Liens can be purchased online and can yield up to 18% interest per year. The banks are very active participants at the auctions in Florida.
Georgia:
The returns in Georgia are 20% per year to the investor if this is not paid after year 1 the investor obtains the underlying property.
Illinois:
Investors receive up to 18% every 6 months for their tax lien investments (36% per year!)
Not bad!!
There are thousands od properties going to auction each month in these states- so get out there and start bidding. Just be sure to learn the due diligence steps before you do!
Earn, Live, Give
Stephen W. Preston
Mick Mimnaugh 10 years ago
How do you do due diligence if you live somewhere else? Are there places you can buy tax liens from people who want there money back? Are you still conducting your tax deed buying tours in Texas? Thanks.
Stephen Preston 10 years ago
Hi Mick, thanks for the comment.
After 5 years of doing this I have developed a system where I can accomplish the due diligence steps from anywhere. Nowadays I have teams on the ground that can do everything for me.
As for a secondary market for buying tax liens, yes they do exist though I have never explored them. I prefer to buy them myself.
Finally, yes I am still doing my tours in Texas. I haven’t done one in the last 10 months because I have been so busy buying property and building this turn-key solution for investors.
If you are interested in joining me on a tour, send me an email to s.preston@twinstar.ca and I’d be happy to have the details sent to you when we announce our next tour.
Stephen