I Want to Make Money Fast by Buying Discharged Debt and Tax Liens. – Mc C

“Dear Steve,

I just got out of debt by a thrid party company purchasing my debt. So of course….now, I want to buy a debt package that can yield about $25k for $350 bucks. Steve??? Is it even worth it? I’m fearful about buying debt with BK attached, especially Chap#7.

It’s either buy debt or buy tax lien certificates? Which do you think I should do? Please advise…

Buy consumer / retail debt in a package or get into tax lien certificates? If you recommend tax lien certificates with whom should I obtain training? Also, for debt packages, once the consumer pays the debt off I can recommend someone to delete there judgment (for a small fee of course).

Ms C”

crime scene narrow

Dear Ms C,

When you say, “I just got out of debt by a thrid party company purchasing my debt” what do you mean by that? Can you please describe the company and the process?

Why would you buy chapter 7 bankruptcy debt that has been legally discharged and illegal to collect on?

And if you buy debt and then attempt to collect on it you better make damn sure you are registered, licensed, and bonded in all the states you plan to do business in. Debt collection is a highly regulated business.

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And then there is the issue of removing accurate but negative information from the credit report. Why would you want to do that? You would be committing credit fraud if you used that credit report to apply for credit. And charging an advance fee to do that is illegal as well.

When it comes to buying tax liens, do your research. It is not all rosy and easy money as the infomercials promote. In fact the ones that have been pushing it have been shutdown by the FTC.

There are enough inexpensive books on the market to help educate you about the process. But as one person noted:

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“Tax lien investing is interesting. They are touted as a surefire winning ivestments and many “experts” offer training costing thousands of dollars to “train” you on how to invest in these “goldmines”. Do yourself a favor, buy this book and avoid the seminars. You are going to learn by experience and this book will help you get started. The seminars are simply going to part you and your money. Tax liens are not as easy as they sound. You cannot simply go down to the courthouse and buy a 25% lien. Most people trying to get you into this game neglect to mention the fact that large companies will flood the market with lowball offers to obtain a majority of the better tax liens.”

Just do all of your homework before you feel compelled to invest. And realize that even if you buy a tax lien and eventually take possession of a property, it can be a dog and a money pit.

Please post your responses and follow-up messages to me on this in the comments section below.

Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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