Chap1

• State law: tax-lien vs. tax auction state

Chap2

• Yield up to 16-18%
• First lien on property

Chap3

• Safe – assuming it’s a few percent of value
• Liquidity – illiquid, small secondary market
• Overhead – need some personal time & energy

Chap4

• State Law diff
  • Arkansas – not on list (no tax lien)
  • Illinois, yes, 2.5 year redemption, 18%+
• If you want property
  • More likely in recession
  • State diff
    • FL highest bidder
    • AZ/CO tax lien holder priority
• If you want interest rate
  • Competition is less in rural county
• Tax official know highest rate of redemption areas

Chap5

• Author prefer residential
• Income investment need fast redeem
• Valuation = land + improvement, improvement should be 75%, if below 60%, then it’s strange
  • Either improvement subpar, mobile home, vast land, etc
• Investigation & Cost
  • Buyer beware – fuel tank need clean cost
• Stick to good neighborhoods
• Statistical buying approach for investor with pooled funds

Chap6

• Auction – usually yearly
• List of property – ask treasurer
• Auction procedure
• Bidding – interest goes down (most state)
  • CO/MD state – more $ the better

Chap7

• Online auction
• More competition
• Commission for online auction company
• realauction.com

Chap8

• leftover tax lien
• Depend on state
• Smaller county , try early, friend with local official

Chap9

• Buy from other investor
  • Use illiquidity to your advantage
  • transfer, assignment
    • Register at county to get paid!

Chap10

• Rural area
  • Clerk less busy
  • Don’t mention foreclosure to clerks (politically)

Chap11

• DONE

Chap12

• Foreclosure 
  • state law diff
  • be precise
  • attorney
  • Notification Procedure – personal service might be needed
  • Uncertainty in tax in foreclosure

Chap13

• Quiet title action
• Unlawful detainer action – remove squatter etc.
• Be fast to avoid squatter’s rights

Chap14

• Worthless properties 
  • Tax assessment very low
  • Stick with improved properties – easier to eval than raw land
    • Which depends on zononing / flooding / water / sewer
  • Phony improvement – not a house but a mobile home LOL

Chap15

• Environmental liability
  • Chealup cost – from owner/lessee
  • Physical solution
    • Stick with residential (but not absolutely safe)
    • Redeveloped industrial is bad
    • Phase 1 – $3500+, whether hazarduous substance never exist
    • Phase 2 – if phase 1 not pass, more investigation
  • Legal solution
    • Lien holder is ok before foreclosure

Chap16

• Bankruptcy
  • Chap7 – liquidation
  • Chap11 – reorg
  • Chap13 – repay

Chap17

• Scams
• Middleman taking a “spread” by selling the tax lien higher lol

Chap18

• FDIC liens – when bank go bankrupt, liens go to FDIC in intermediate period, until the bankrupted bank is bought by another bank
• If want to foreclosure FDIC lien – extremely difficult

Appendix

• Illinois regulation
• Two system
  • Regular system
    • Bid starts at 18% interest and goes down from there
  • Scavenger act system
    • At least two years delinquent
    • Bidding mechanism different, bid what you’re willing to pay
• Redemption
  • Regular sale, interest increase regularly
  • Scavenger act
    • Time less than 2 months, 3%/month or pro-rata
    • 2-6 months, 12%
    • 6-12 months, 24%
    • 12-18 months, 36%
    • 18-24 months, 48%
    • After 24 months, 48% + 6%/year