Winning Bidding Strategies – From The Tax Lien Lady

Recently I went along to a tax sale in New Jersey. It was a really small tax sale in a tiny rural borough. There were only 7 properties inside the tax sale and I might get 2 liens at 10 and 12 percent. That’s not bad whatsoever in today’s competitive tax sale environment in New Jersey. Usually with a tax sale this way I come away empty handed because I’m not prepared to pay premium for small tax liens.

Most in the liens in this particular sale (nearly one) were under $600. In some states, local governments sell utility liens on the tax sale right with the taxes. Anything that is paid for the local municipality could be sold to be a tax lien at these tax sales. Most of these liens were for either water or sewer delinquencies. Only one lien included taxes in addition to delinquent sewer amounts and only agreed to be over $1700. All on the others were for either water or sewer amounts or both.

The trend inside last several years in New Jersey has been to bid premium on these small utility liens. Investors are prepared to pay premium on these liens so as to pay the following taxes. But on small utility liens, you always do not get to give the subsequent tax payments, but only the following sewer or water amounts which might be much smaller versus the tax amounts. Keep in mind that in New Jersey, the interest rate on the lien is first bid into 0% before premium is bid. Although you don’t realize your premium back if your lien is redeemed in 5 years, you don’t end up being interest for the premium amount bid or within the lien amount. You understand a small penalty around the lien amount and also the statutory interest (18% in the event the tax payer is $1500 delinquent and 8% on anything before that).

What some tax lien funds have been prepared to pay for getting these small utility liens has got a little beyond control. In the last year I have seen them settle to $1500 premium to have a small $200 or $300 lien. What that truly amounts to is they are making this kind of small blended roi that it’s really not worth it by any means; specifically the individual investor.

So how was I capable to buy 2 small liens at decent interest rates on the last tax sale I attended? First I traveled to a small sale that have only 15 liens around the original tax sale list high were only 7 properties left within the list about the day in the sale. Secondly, there have been no really big liens with this sale; the biggest one was under $2000. Large liens reveal all the competition.

Third, you should know ought to stop bidding. I actually was slightly lucky as of this sale because there was only an added bidder representing a tax lien investing fund company. I buy every lien except one, but I didn’t bid him into far. If you don’t get greedy and refer to bidding every lien on your bottom line, then a other bidders might not exactly bid each and every lien into their net profit.

The forth thing is I was happy to acquire the crumbs because of this sale. What I mean is always that the 2 properties that I got liens on were the worst properties inside sale. One was bank owned and fallling. It hadn’t been dealt with in years. You can see a photo of it for the cover of the issue. You can’t find it from the picture, it also had junk piled up within the driveway and backyard and also a dilapidated, falling down shed inside the back. The other house was vacant and approximately to be foreclosed through the bank. It was also an exceptionally small house without having garage, requiring some TLC and also a lot of updating.

If I had decided not to buying these properties because of the condition, I would have missed out on a few good liens, and also the only liens that I would are actually able for getting. You have to be able to take just what the big boys will not want or are able to let go. These properties may very well be vacant as well as in terrible shape however they are still good liens. The bank is likely to redeem them sometime, but that’s doubtful until you can purchase them which may take a long, number of years. That will deliver time to cover subsequent utility payments (remember they were small utility liens, increase my investment and earn more interest!

Secure Money – Profit Changes

One of the most obvious and ways to save extra cash is always to change several of the way you utilize products and components of your everyday life.  The key would be to make minor changes.
For instance, always pick the cheapest hand soap you could find.  The quality doesn’t necessarily increase with the price and you will use it instead of ‘bath soap.’
Always use the full product.  Turn bottles inverted and drain to obtain the last bit from their website.  Tear open sugar and flour sacks for getting everything; squeeze or cut open tubes to make use of it all before you run out to buy more.  You’ll be amazed at the amount of there in fact is left!
Also, never use over you need.  Just given it says within the box that you may need a full cup, doesn’t imply that you really do it want to buy.  Half a step of laundry detergent and a half teaspoon of dish soap are instances of what are usually enough, as opposed to what the manufacturer says.
To save cash, you can use several of the things in your own home in some unique ways.  Instead of spending lots of money within the fancy floor cleaners, try using ammonia.  It does a fantastic job, and you may use plain water involving times.  If your furniture needs some polishing, mix equal aspects of white vinegar and vegetable oil and rub around the furniture.  Buff which has a cloth until it shines.
For a freezer bag, use empty chip bags and close with masking taps.  Also consider using a bowl which has a lid, like a margarine tub.
If your skin is feeling somewhat dry, there are lots of substitutes for expensive lotion.  Petroleum jelly rubbed for your hands through the night after a trouble soak, mayonnaise (rinse w/ cold water after), and other oil based food.  Just be sure you put it on soon after your hands are usually in water.
To avoid wasting money on laundry, dissolve a bar of handsoap in water to exchange laundry detergent.  Add three gallons of domestic hot water, mix thoroughly and convey a cup of washing soda.
Sure, these are generally small changes, but added up, they will put some additional change for your pocket throughout every season!