State Tax Lien & Deed Sales List
Skip the Auction: Buying Over-the-Counter Tax Liens
Written by: Thomas Needles
Most smart tax lien investors go to auctions with a certain idea of what type or types of property that they would like to bid on. When properties fall outside this spectrum, tax liens can fall by the wayside. Also, there is only so much time that can be dedicated to the auctioning of tax liens. If remaining tax liens fall outside the time limit, those also fall by the wayside. This leaves the county with leftover tax liens that have no owners. To avoid these tax liens being overlooked or missed again, another method of obtaining tax liens was created. This is called purchasing a tax lien over-the-counter.
In order to participate in an over-the-counter tax lien purchase, you must contact the county. The county has a registry of all the tax liens available for you to purchase as you please with no competition. The process of auctioning and bidding is null and void. Not only is the lack of bidding a bonus, but there is also a financial benefit to investing in over-the-counter tax liens. Once purchased, the maximum statutory rate is applied. The lack of competitors means that no one is willing to accept a lower interest rate and snatch the property from you. This means more money in your pocket. This would be an excellent route for any current or prospective tax lien investor to help build their tax lien inventory. The only skill necessary, besides being knowledgeable, is to be able to participate in a transaction.
Advantages of Investing In Over-the-Counter Tax Liens
Over-the-counter tax liens do not only bypass the auctioning process, but they can also eliminate travel completely. Tax lien sales can be conducted in person through auction, or they can be done through the mail and, in some cases, over the internet. This advantage allows you to have more money in your pocket by not spending additional money on travel expenses. This is a great way to make money from the comfort of your home and not mere pocket change either.
Disadvantage of Investing In Over-the-Counter Tax Liens
There is one disadvantage to the over-the-counter tax lien, and it is fairly obvious. The tax liens that are in the county inventories were either cut short for time restrictions or they were overlooked and unwanted. This is where your knowledge as an educated tax lien investor comes in. You need to be able to differentiate between a bargain and a train wreck.
Remember: Over-the-counter tax liens are auction leftovers. We all know that leftovers are not nearly as satisfying at the original course, so do not be discouraged if you do not discover the deal of a lifetime in this type of inventory. However, investing in over-the-counter tax liens can help diversify your tax lien portfolio and give you access to properties that in an auction you might not have considered investing in.
