State Tax Lien & Deed Sales List
Locating and Participating in Tax Lien Auctions
Written by: Andrew Kryzak
In order to participate and bid in a tax lien auction, you first must find one. When it comes to tax lien auctions, many places only have one auction annually. Also, locations are not always down the street, and if you are serious about investing, this may require some travel on your part. There are also a registration processes that take place, and in order for you to attend auctions, so you must be punctual about this. There are deadlines. When making your reservation, it is vital to you ask if there is a registration fee as well, so that you are not caught off guard when you arrive at the auction. It is not necessarily common practice to enforce fees. Regardless, you need to be fully prepared to invest in tax lien properties and the fees before them.
Savvy is Smart
Being savvy is an important asset to have when you are investing in tax lien properties. You need to know how to have the top chances at the best properties. For example, it is required when you bid at an auction to fill out a W-9 for each home you bid on. This is a form that is for people who are receiving income without taxes being taken out; it's more commonly known as the tax form utilized by independent contractors. Most often you are only given one card; therefore, you are given one shot at one property. In order to get around this, you can fill one card out with your social security number and fill out a secondary card with your corporation's tax identification number. This can give you more of an edge in getting the properties you want.
How do You Want Me to Pay?
Be prepared with correct payment forms. No one is going to take your personal check or your word. Those things are what got these home put up for tax liens in the first place. Almost every tax lien property county will require certifiable payment from you such as a money order or cashier's check. There is an expiration on how long you have to obtain the funds, so do not bid for something that is going to take you a while to pay for. There is no payment plan. Some auctions can request payment in as little as 2 hours and up to 48 hours. Some require immediate payment or at least a down payment and then the rest at the remainder of the day. Either way, you need to have the money to invest before you make the trip to the auction.
Investigate before you invest
It will behoove you to be as knowledgeable about tax liens as you are about the auction that you will be attending. Many people do not do extensive research into auctions, and that can leave them ill prepared and unable to purchase property. A simple phone call can put you leagues ahead of your competition if everyone shows up expecting to pay at the end of the day, and you were the only one who has the 10% on hand. Guess who gets the tax lien? Knowledge is success. If you find that you're struggling with your auction, you are not prepared.
