If you or someone you know wants to earn high profits on your invested dollars but without property management headaches, the new book “Profit by Investing in Real Estate Tax Liens” by Florida attorney Larry B. Loftis will answer your questions. It is the first book explaining all the benefits of investing in property tax liens and tax deeds.
Until now, property tax liens and tax deed profit methods have been kept secret from the general public. Yes, there are several TV infomercials hawking books and tapes about tax lien investing, but they are not as well researched and detailed as this new book.
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Author Larry B. Loftis not only explains how to profit from bidding at local tax lien and tax deed sales, but he shares his personal success examples in many states. To add more realism, the book is filled with photos of properties on which Loftis acquired tax lien certificates (or was outbid by a competitor).
Until now, I thought tax lien certificate sales were high-risk for the investor. Loftis shares how to take the risk out of buying these tax liens.
He explains why major banks bid at these sales because of the high yields. Along the way, he shares how to outsmart these institutional bidders who have millions of dollars to invest and why it pays not to compete directly with them.
This amazing new book shares the important legal tax lien and tax deed details for each state and which states offer the highest yields. Iowa appears to offer the best returns on investor dollars at 2 percent. That’s 2 percent per month, 24 percent per year.
Loftis recommends inspecting the properties several days before the tax sales. But he emphasizes why the high bidder rarely winds up acquiring title to the property (because the owner usually redeems and gives the investor a high yield).
But he shares which properties should be avoided because they are unlikely to be redeemed by the last owner. Avoid vacant lots, Loftis advises.
The author is brutally honest about the pros and cons of buying tax liens and tax deeds. He favors tax liens because these are high-yield investments rather than tax deed property ownership, which requires management work.
Although Loftis has made big profits from acquiring tax deeds, he recommends doing something quickly with the property after acquiring it, such as making a fast-flip profitable sale. He warns of the dangers of owning title to vacant buildings, especially of those far away from your home.
The author seems to view investing in high-profit tax liens and tax deeds as a game. He explains how the game rules are different in each state. That’s why his state-by-state law summary is so valuable. He even includes his personal experiences in states where he has bid on tax liens and deeds.
A unique feature of the book, at the end of each chapter, is “Larry’s reminders.” It is a summary of the key chapter topics, such as “do your homework before the sale, set your maximum bid ahead of time, be assertive, yell out your bid as if someone has robbed you, and be aware of the late bidding shock investors and their strategy.”
Chapter topics include “If This is So Good, Why Haven’t I Heard About It?” “These Liens Must be Only on Crack Houses, Right?” “10 Percent to 300 Percent Returns and This is Safe?” “The Auction: Rules, Dates and Fees”; “Bidding: Tricks of the Trade”; “What If They Don’t Pay? Foreclosing on Your Secured Investment”; “Nothing is Risk-Free, but This is as Close as It Gets”; “Attention All Real Estate Scavengers”; “Lots, Ditches and Few Gems”; “Pennies on the Dollar”; “Risks and How to Avoid Them”; “Free and Clear, But Can I Sell It?”
This easy-read book is filled with the author’s practical advice, plus fascinating examples and success stories. The many photos illustrate the type of properties sold for unpaid property taxes, including luxury homes and condos of well-known individuals. On my scale of one to 10, this well-written, well-researched book rates an off-the-chart 12.
“Profit by Investing In Real Estate Tax Liens,” by Larry B. Loftis, Esq. (Dearborn-Kaplan Publishing Co., Chicago), 2005, $19.95, 235 pages; Available in stock or by special order at local bookstores, public libraries and www.amazon.com.
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