The Truth About Tax Lien Investing

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[MalikTillman-dyqp]

Increasing tax rates are the reason I rolled over my 401k to a Roth. I don’t want to be 59 paying taxes on current income on withdrawals made from my retirement account. I'm now seeking best possible areas or ways to gain wealth in today's economy.

[kvgolfa]

No one from the current crew will be able to give this type of advice when Ramsey leaves. They'll just say no go do the baby steps

[limaradam]

You work for 40yrs to have $1m in your retirement, Meanwhile some people are putting just $10k in a meme coin for just few months and now they are multi millionaires. I pray that anyone who reads this will be successful in life

[JerryMattson-lo]

Hit 250k today. Appreciate you for all the knowledge and nuggets you had thrown my way over the last months. Started with 24k in August 2024.,

[nicolasbenson]

I think investors should always put their cash to work, especially In 2025, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks this year. Hope to make millions this 2024.

[rltreasure]

I bought into the tax lien program and got started Monday morning to find out when the county auctions will take place. What I found out is the company came around after all the counties had complted their annual tax lien sale. I would have to wait another year before I could try to invest. I called them out on their nonsense and got my money back and moved on. Stick with what you know that’s where you’ll make your money.

[Jayraymond]

Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.

[restandrelaxation]

If there’s a mortgage the bank will pay the taxes. A tax lien foreclosure gives you the property free of the mortgage. But banks won’t let it happen. Notice how your escrow pays the taxes in your mortgage.

[bradycone]

Dave is mostly right about this. The place where he is wrong is the mortgage. Almost no properties with a tax lien have a mortgage. It varies state by state, but here in Washington State a tax lien foreclosure wipes out the mortgage. The mortgage isn't transferred to the new owner, it just disappears and is a loss for the bank. But, that never happens because obviously the bank would never let it happen. That's why most banks and mortgage lenders escrow the taxes, so that they can make sure they are paid. In a case where it is not escrowed, the bank will step and and pay it long before it get's to lien foreclosure.

So Dave is right about most of this, but he seemed to paint it as most have a mortgage to deal with, and that's just not the case.

[jaclynschultz]

I wouldn’t recommend. We bought 2 vacant lots in GA at a tax lien sale in 2012. For very cheap. It’s different in every state, but we’ve had to hire an Attorney to “foreclose” on the original owners (after 1 year had passed). We’re now working with an Attorney again to get a transferable deed. We’re under contract to sell both lots to a builder. Well make a little money, but not much. It’s been more of a headache than anything else.

[jeske]

In May 2023, the Supreme Court's Tyler v. Hennepin decision ended the windfall profit opportunity from tax liens. You aren't entitled to the entire equity in the property, only the lien plus some fees/interest. The rest goes back to the homeowner.

[ronjr]

I thought about doing this many years ago but it seemed complicated. Now I know why. Again very good advice. Unfortunately most are financially illiterate and would rather listen to social media B.S.

[shanep]

I'm 35 and I remember infomercials 🤦😆

[VonNothias]

You spoil us Dave! I've digested a plethora of personal finance oriented channels here on Youtube over the years and the only two that I can still stomach are you and Erin. You give the very best and spot on advice and ask thought provoking and unbiased questions that help listeners like myself become better. More importantly, thank you for recommending Abby Joseph Cohen Services my investment portfolio with her has been quite sustaining

[russlea]

Actually, it's an ad that pops up before and after your real estate topic videos.

[machintelligence]

In Colorado when the property is redeemed, you do get the 10% premium, so there is s small profit involved.
Locally, the two properties that weren't redeemed were a gasoline station with contaminated soil and a house where meth had been cooked.
You get a headache at a bargain price.

[unkownuser]

Ever notice the people are hyping tax lien investing always have a course and book to sell you?

[pdxmusl]

Added to that... the previous owner is not leaving on good terms. At least in the state i was living at. It was very common for the prior owners to sabotage something in the house thats very difficult to find. I never owned one of these. I considered doing it.

One of my uncles did flipping. He's told me stories of things he ran into. One house someone drilled several holes into the drainage pipe for the toilet. Then patched the wall holes. One house i evaluated the previous owners completely gutted it. Another house i considered someone lowered all the ceilings so you had to kneel at random heights through most of the house. I mean theres a lot more and people can be really gross.

Point is even after all that and if you want to flip it you might be in for a lot of work. And a lot of surprises.

[SteveKilgore]

I’m in my early 20s, in medicine, and I know very little about finance beyond the basics… one hard rule I have though: don’t take financial advice from tiktokers. These are the same people that didn’t know check fraud is a federal offense and not a get rich quick loophole 😂

[djpuplex]

You'll quickly find out there's probably other liens on the property that you are responsible for.