We have a lot of students concerned with how much money they should have to get started with tax liens and tax deeds. Of course, there should be a base amount to get started with because it's going to be hard to start with $15. But this is a personal question because it's different for every person. I don't know how much you should start with... that's up to you.
The very first tax lien certificate I bought was for $62 and it redeemed very quickly. I was a young college student researching with a friend and just getting started with these strategies. You start where you can, and grow from there. We've had students start with $2k and students start with $115,000 and more. It takes money to make money, and the more you have the better you're off. This is especially true with tax lien certificates as it is a percentage game. The higher the amount invested the higher the money made based on the state mandated interest rate you receive.
Many counties even accept credit cards these days. This offers a lot of help to those who prefer not to use their own cash (not a bad idea...) or who don't have the cash to get started. It's crucial, though, when borrowing money that you have an exit plan. We will talk about this in a later post.
Go through your finances, set up a financial plan, decide how much you would like to set aside for investing and then get started. That's about it. As you find more success you may want to put more into it and that's fine.
Tax liens and tax deeds are excellent investments. Knowing how much to start with begin with each individual.
No Risk Investor is the ultimate resource and tool for tax lien, deed, and real estate investors all over the world. No Risk Investor takes incredible pride in its ability to help students take action, get into properties, and begin the journey to financial freedom. No Risk Investor provides county lists, property lists, online auction lists, comprehensive training and education, an auction calendar, and online auction center, an investor community and much more for its members.
