Average Returns In NJ

does anyone have any experience on how much tax liens are bid down in most municipalities in NJ?

Obviously im a noob (and pose less threat than a vending machine).

I know they start at 18%...are we talking the full 18 or much less?

I read on other threads that Cook County IL everything gets bid down to 0.

And what is the approx redemption percentage? Anything else I should look out for???

I'm a graduate student at princeton doing some research in this area. I'll be haunting some auctions as an an observer if anyone wants to chat.

BTW...for the people who buy millions in liens...doesn't the paperwork get overwhelming?

From the looks of things, they average around $2000/sale...is it even worth bidding on something thats less than $1000???

So after talking to some people. The basic gist I get is that every auction is basically bid down to 0 plus a large premium in NJ.

And the premiums bid so high that it the returns are marginally more than bonds (if that).

Can anyone offer an explanation as to why this happens? I've heard someone say that hedge fund types do this and then securitize them to trade OTC on Wall St and the Pension funds end up being the suckers in all this.

Other people have suggested that investors with deep pockets are simply offering competitive premiums....but why would they they bid it so low given the liquidity and various other risks that other investments..ie, bonds dont carry.

Anyone going to the Lucy Township auction this friday?

most bid down to 0, so that next year they can pay and get 18%, and year after that 18% so the blended rate works out much higher, but often the loans get off and you get 0%, and in very rare instances if the taxes are not paid you can foreclose.