Alabama is a tough state to buy tax liens in–changing statutes and investor-unfriendly jurisdictions, overbids, and lower-valued properties. But, if you’re local, you can make a great return and possibly end up with a property or two in the end.
A good initial bid of 16% excites alot of investors, but the ease of purchasing these liens make the competition fierce and keeps rates low. Click here for my comprehensive guide about the Arizona tax auction and certificates of purchase.
Florida is the largest online tax auction in the United States. It’s very competitive because of its safety and easy of purchasing. You can earn a max rate of 18% on your tax lien certificates and after 22 months, you can apply for a tax deed to the property. Find out more here plus a link to my new E-Book on Florida tax lien certificates.
Georgia is a hybrid between a tax lien and tax deed state. With a 20% interest rate plus an overbid that must be paid by the taxpayer, you’ll end up with properties after the one year redemption period. Find out more on my recent page about investing in this state.
Indiana has a short, one-year redemption period and returns up to 15%. It’s an overbid state, so there is increased risk especially since many areas in the state were hard hit with the declining industrial market.Here’s my guide about Indiana tax liens.
A 24% annual interest rate and no judicial foreclosure or quiet title to deal with. Need I say more? But, there are requirements that must be followed exactly to get a deed. Here’s a printable summary guideabout investing in Iowa tax certificates.
Recent changes in the law make Kentucky a great state for individual investors (and their attorneys). Kentucky now mandates a lottery-style auction and limits the auctions to one bidder per entity represented. Thus, everyone has an equal chance to pickup a tax lien. The 12% interest rate and one year redemption period before you begin foreclosure is pretty good but you’ll spend alot in upfront fees with your tax lien attorney to comply with the noticing requirements. You can find out more on my updated page about Kentucky tax liens.
Louisiana is an easy state for individual investors to buy tax liens. The auction-style favors the individual investor with either bid-down ownership or bid down penalty. You can earn a 5% penalty plus a 12% annual interest rate. Find out more information on my tax lien guide describing the Louisiana tax lien auction.
Maryland has a great interest rate of 20% or higher; however, there is a complicated overbid component which adds risk to your bids and does not earn interest. Often times, the bidding gets out of hand on good properties and exceeds the value of the property. Find out more by clicking here.
Mississippi features small lien amounts and a good interest rate of 18%. It can be a locals market–all of the tax sales are held on the same day, so you won’t find as many investors showing up to the auction. Find out more on my state tax lien guide about Mississippi Tax Lien Certificates.
If you can fly, drive, or train to this state in March, you’ll have a great chance to buy tax liens in the state at 14%. Since the auction is held as a round robin or lottery, you’ll have a fair chance to pickup liens at the full interest rate. Plus, the county handles the administrative side of things so you’ll just need to sit back and wait for a check to arrive. Find out more on my summary about Nebraska tax lien certificates.
A challenging state to invest in because of the overbid. But, the short redemption period and relatively strong real estate market make this a favorite. Click here for free guides from our past blog posts about SC tax lien investing.
Earning 18% annually isn’t bad and the real estate market is good. But, watch out, it’s an overbid state and you’ll need a DC tax lien attorney to help out with the foreclosure. Find out more on my District of Columbia Tax Lien page.