In this episode of Coffee Talk with the Land Geek, Mark Podolsky discusses the risks of Tax Lien Investing.
It is a phenomenal strategy, which will allow you to make a higher return on your investment, without all the headaches of renters, rehabs, renovations, and rodents. You can make an average of 2-24% on your money.
However, there are risks that come with Tax Lien Investing.
- In the due diligence, if you buy a tax lien but you find out it’s a piece of raw land and the owner has no intention of paying off the tax lien, you’re not going to make money on the tax lien. The property might have to be foreclosed. This can be avoided if you purchased the property straight from the owner. Do you want the property in case you have to foreclose on it?
- There might be code enforcements that are in place. It may include taking care of the upkeep of the property and paying municipal fines. These can destroy your returns.
- There might be Government Arrears. You might find out that you’re not even the rightful owner of the tax lien.
- Legislative and Court Rulings change all the time. These changes in the law may render your tax lien useless or puts it in jeopardy.
- The tax lien owner may file for bankruptcy.
You can make 300% to 1,000% on a cash flip or owning the land. You do a little more work if you market the property and sell it but it’s not that difficult. You still have to spend the same amount of time doing due diligence on the tax lien to make 16%.
To learn more, go to https://www.thelandgeek.com where you can find the Passive Income Model Blueprint, get our e-book “How to Avoid the Three Land Buying Mistakes,” and you can get the Best Passive Income Model Podcast delivered each week to your inbox.
Want to learn how to flip land? Get The Passive Income Launch Kit today for $7.00 ($97 Value) at http://bit.ly/1E6KIOu
Invest in Wholesale land at http://www.frontierpropertiesusa.com/
When asked if Mark has the best passive income model, Todd gives very interesting points to ponder such as the percentage of offers that get accepted, if there is a smooth business model that doesn’t take up too much time, cost structure knowledge, and knowledge of margins.
