Tax Lien Redeemed and Another Lesson Learned

In August 2020, I wrote an article about my first tax lien buying experience in MS. Click on the link to review the post. Tax Lien Buying in MS

Yesterday, I went to the mailbox and low and behold, I received mail from MS. Immediately, I knew someone had paid their property taxes and I was getting the money I paid back plus interest which I was looking forward to. Low and behold, that is not exactly what happened. Yes, I got some money back with interest, but not everything I paid.

Here’s the breakdown on what happened.

  1. Tax lien cost $177.33
  2. I paid $199.33
  3. I received $193.29

When I looked at the stub that came with the check. it listed the delinquent amount which in my case is $177.33 and then it lists the interest on that amount which is 15.96% and that’s how I ended up with $193.29.

Now I lost $6.44 but it’s also a gain because I learned that I should have paid more attention to the training for the website and during the live auction. I’m pretty sure this is the lien I was bidding against myself on. I was in a bidding war with someone and went a little too far. LOL! I’m laughing because it’s an easy mistake to make when dealing with online bidding and attending the live auction. Normally, I wouldn’t attend the live bid, I would place my bids and wait for the results. This is not something I’m going to beat myself up over, but it is something I wanted to share because it’s an easy mistake to make for anyone.

On a positive note, let’s say I did only pay $177.33 for it and I received $193.29 with the 15.96% interest. That’s $15.96 on $177.33. You are not going to get that with your money in a bank. Keep in mind, I purchased this in August 2020 and it’s February 2021. I can’t make that much interest on $5,000 in the bank in 6 months. It’s definitely something to think about as you find ways to make your money work for you.

If you are interested to see other rate of other states, check out the link below.

Why I Invest in Tax Liens

Mailbox Money

My primary goal is to uplift and provide affordable housing for the community I grew up in, but I also want a better return on the dollars I make than the traditional bank will provide in order to meet my goals. So yes, I’ve jumped on the Tax Lien buying band wagon.

No, I did not pay someone $97 for a course. No, I did not have pay $300 for a Consult. I simply took a few hours in the evening after work to research and learn how the process works. In the words of Brandon Turner from Bigger Pockets, “I did my own push-ups.”

One day I came across an article that explained the difference between Tax Liens and Tax Deeds. Then I came across a map of all the US states and what months they have their Tax Liens and Tax Deeds sales with the redemption period. I printed all this information and I read it. Then I went to YouTube and did a search on Tax Liens and found the perfect video for me. In the video, the person was actually showing what properties they bid on based on their preferences and goals as well as showing the audience how the bidding worked on the bidding website.

The next thing I knew I was buying a left over Tax Lien from Duval County in Florida. A month later, I got a check in the mail. Yes, I was skeptical and I did not know everything, but I knew enough to know how much I could afford to pay for a Tax Lien and what kind of property I was looking for. So I didn’t spend $1000 nor did I spend $100 on my first Tax Lien. I wanted to get my feet in the game and see how it worked For me, that was enough. To date, I have purchased about 5 Tax Liens in different states. I do this with the immediate thought that I’m going to get a better interest rate on my money rather than thinking I’m going to have foreclose on someone’s home. To date I have yet to have to foreclose on a property.