BUSINESS FUNDAMENTALS
TAX LIENS
Tax-Sale Horror Stories SOMETIMES, THE BIGGEST WARNING SIGNS ARE RIGHT IN FRONT OF YOU.
by Charles Sells, PIP Group
hen the absolute truth seems too good to be true, how do you know whom to trust? That statement is the most-often-cited reason in- vestors give for why real estate investors have not yet gotten involved in tax lien and tax deed investing. Many aspects of this strategy just seem too good to be true. W
Even though those are accurate statements about tax lien investing, an investor’s success is not absolutely guar- anteed simply because he or she is pursuing this strategy. There are certain things that can go wrong with a tax lien or tax deed investment. These are the true “tax investing horror stories,” and they have nothing to do with whether or not you can routinely get properties for pennies on the dollar at the tax sale. They are worth sharing here because of the preventative lessons they offer you as an investor. Here are three of the worst you will ever hear: NO. 1 The Negative Neighbors Make Your Profits Nosedive Probably one of the worst tax-lien horror stories you may ever hear has to do with an investor who nearly gave up on tax deeds because of a dead raccoon. And before you think he was just being a little high-mainte-
Consider the following:
• You can absolutely gain access to incredible prop- erties at rock-bottom prices.
• Your investment is absolutely backed by the full force of the government.
• Your lien absolutely does take precedence over just about every other debt on the property.
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