Yes and No. If you don’t have a nationwide strategy and you restrict yourself only to your local market then yes, there could be a lot of tax lien certificates competition. If you have a nationwide strategy where you have access to safely acquire tax lien certificates nationwide right from the comfort of your own home then no, there’s almost no competition.
Beat the tax lien certificates competition
For example, if you lived in a county that only paid 8% interest and had very few tax lien certificates available, then there wouldn’t be much opportunity there.
Conversely, when you implement the strategy of “assignment purchasing,” you can live in that same county, but now you have access to:
|Citrus County||10,000+ tax lien certificates||18% interest per year|
|Lake County||11,000+ tax lien certificates||30% interest per year|
|Cook County||21,000+ tax lien certificates||36% interest per year|
In just three counties – Citrus County, Florida, Lake County, Indiana, and Cook County, Illinois, there were over 40,000 tax liens offered. There are over 2,000+ counties nationwide that offer tax lien certificates. Assignment Purchasing gives you access to tax lien certificates in all 2,000+ counties right from the comfort of your own home. Keep in mind those are only the tax lien counties. There are another 1100 counties that offer property tax deeds for sale.
Many tax lien certificates go unsold at the county sales.
Many counties throughout the country are not even able to sell all of their tax liens and deeds. Often times in the larger counties, there are thousands of liens that go unsold. There are a number of reasons why the liens go unsold. One reason is that a small number of properties are undesirable and investors that know how to do the proper research avoid those properties. The primary reason, however, is that there are more liens available than there are buyers to purchase them.
In conclusion, if you are to have a nationwide strategy, I think it is safe to say that you will extinguish your capital before you run out of tax lien and tax deed investment opportunities. So the tax lien certificates competition will be low.