Buying Government Tax Property?
Dave warns John that finding a government tax property that's actually a good deal is like finding a needle in a haystack.
QUESTION: John wants to know about buying government tax property. Is that something he should look into?
ANSWER: No. It’s usually pitched by scam artists.
There are a couple of these properties that work out. For example, Florida pays 18% on them. But it’s like looking for a needle in a haystack to find a deal that’s actually going to be good for you.
In the states that do tax lien sales, you buy into a property where the owners did not pay their property tax. You either end up with the property or with your money and a given interest rate.
Sometimes you can end up in a bad situation where there’s no equity in the property or rights of redemption that can leave you in a bad situation. I’ve only known one person who has ever made any money on these deals. Get-rich-quick doesn’t happen.