Anyone bought "tax lien riches" by andrew kryzak? what did you think?

Question

Anyone bought "tax lien riches" by andrew kryzak? what did you think?

Answer 1

I have managed tax lien accounts for others.  If you can invest a very large sum of money, at least $150,000, in liens and if your bidding strategy is economically sound, you can earn an above market rate of return, but not a lot above.  The problem is that the properties that you usually end up with are adverse properties, that is properties that no one in their right mind would want.  You do get some gems from time to time, but competitive bidding keeps them from being worth much more than you would get in marketable investments.  In addition, you are likely to have additional attorney's fee, liability insurance problems if someone is injured or was previously injured on the land, and in some states substantial additional costs to make the legal title to the land marketable.

If you want an 7-10% return, if you  manage your bidding well, then tax liens are not a bad way to go.  If you have a small sum to invest, the risks from bad properties probably outweigh realistic gains.  If you have a large sum to invest, and go in eyes wide open, then you can make somewhat stable additional returns.  What you do need to realize is that most states have follow-on cash demands.  You will have to pay subsequent taxes, you will have to pay to have a title search performed, you will have to pay for a deed, you will have to pay publication fees.  On the property you acquire you will need to pay liability insurance, you will have taxes to pay, you will pay realtor's commission, you will likely have to file suit to "quiet title," in order to make the property marketable.

Let me provide you an example that is probably statistically correct in most jurisdictions.  You will accept a 6% return on your investment and bid so.  Of course some properties earn a higher return, but you limit your bid to a maximum price of 6%.  On a $150,000 bid, expect to have outlays of at least $75,000 over the following year or two.  You would have bought about $90,000 in property taxes and would acquire maybe seven parcels at the end of the redemption period, of which maybe three or four are good parcels and two are write offs.  You would earn interest on the $90,000, but almost all of it would redeem within a month of the sale, a bunch the following April 15th and then trickles from that point forward.

On an internal rate of return basis, you would have made 7-10 percent given that you could sell the land you bought at a good price minus all the costs.

Answer 2

I was planning to until I read some reviews that it's not as easy, not as simple as their ads are saying.  The guy I read about said that he got a property for $14000 (there is none in hundreds) but it's very nasty so he will still be putting in a lot of money in that property to sell.  I suggest you do some more researching.

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