This content was created by Mark J. Podolsky. This content was uploaded by Mark J. Podolsky. This is a YouTube video titled "Why I like Tax Deed Investing Vs Tax Lien Investing" created on October 28, 2013, by Mark J. Podolsky, also known as the Land Geek. In this video, Mark discusses the differences between tax lien and tax deed investing, highlighting the competitive nature and lower returns of tax lien investing compared to the higher returns of tax deed investing. He provides insights and resources for those interested in land investment.
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Hey, it's Mark Podolski, the land Geek from thelanegeek.com let's have another virtual cup of coffee together. So I often get a question from prospective land coaching students. Do I want to start investing in tax liens or tax deeds? And tax liens are when you actually are buying the back taxes from the county or the municipality that has put a lien on that property. So for example, you buy a piece of property in that county, you don't pay your taxes whether it's on the house or the piece of land. And then the county takes that property to auction. And if it's the liens for $1,000 in back taxes, they'll start auctioning off a percentage or an interest rate that you, the investor, can earn those taxes. Now if the person that owes the taxes doesn't pay off their lien to you, which happens very rarely, 95% of liens are redeemed, but let's say that they don't. Then you go through the foreclosure process and you actually get the asset, whether it be the house or the land. So sounds great, right? People can average between 8 and 14% investing in tax liens. The problem that I have with tax lien investing is that it's number one, really, really competitive. Number two, you have to do your due diligence on each state. So each state has different laws between and how they run their tax lien sales. And number three is that I just am not interested in making 8 to 14% because in that tax deed sale when you actually get the property and you flip it, you can average between 300% and 1000%. So 8 to 14%, 300 to 1000%. Tax lien investing is really about doing your due diligence on that property and getting your money out within two to three years, which is a very nice way to get some passive income and a passive interest rate. Tax deed investing is much more hands on and a lot more work, but our return is worth the effort. So if you want more tips, tricks, techniques on how to make an incredible income buying and selling raw land, go to www.thelandgeek.com download for free the Passive Income Blueprint, our three fatal land buying Mistakes ebook and get our weekly podcast delivered to your email inbox each week. So this is Mark Podolski, the Land Geek. Thanks for having a virtual cup of coffee with me. I'll see you next time.
