When Flipping properties, whether its a Wholesale property or a Rehab, the bigger the discount usually means the more issues with the property. One of those issues are Liens placed on the property. It could be a Voluntary Lien, which the borrower agreed to the beginning like when they got their loan on the property, or it could be an Involuntary Lien that was placed on the property through a court action. Credit card companies, hospitals for medical bills, and contractor's that are not getting paid are examples of Liens that are placed Involuntary. No matter the source of the Lien they are all something that have to be dealt with before you can flip the property. Liens will cloud the title not to mention will bite into your profits if they are not negotiated properly.

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