State Tax Lien & Deed Sales List
Investing in Tax Lien Certificates From Home
Written by: Thomas Needles
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Once you have determined which states are the best for you to invest in, it is time to develop your plan of approach. Each method requires research and practice on your part to become a notable competitor.
Tax lien certificate investing through the mail or internet bypasses the auction portion, but enhances the amount of research required. If you are unable to drive by the property and view the type of neighborhood that it is in or the physical condition of the property, it is best to contact the county and review the most recent appraisal value as well as other types of information such as the property's age. Homes that are older will have a higher likelihood for problems such as asbestos or lead paint. This can be a hex on a home if you are attempting to sell it. Beyond the research required, distance tax lien certificate investing is extremely rewarding and profitable with costs minimized by lack of travel expenses.
Bidding On Tax Lien Certificates At Auction
If you do decide to travel to an auction, you must be prepared with knowledge of the property as well as of the auction. Rules, fees and the type of bidding varies from auction to auction, and you need to be able to bid down the interest or bid up the premium if asked to do so. Understanding the properties fully will allow you to be able to make the split second decisions that determine whether or not you get the tax lien certificate. There are counties with hundreds of tax liens available, and the auctioneer will not hesitate for one moment. If no one else chimes in, the tax lien certificate is granted to the last bidder and the auction continues.
Knowing the properties that will be at the auction or, at the very least, the ones that you are interested in will prevent you from making hasty and potential risky investments. It will not be likely that your competition will do extensive research that you have, and that grants you with the upper hand come auction time. You may watch even seasoned tax lien certificate investors bidding higher and higher for a property that you know is dilapidated and located in a unfavorable portion of town. You also know how much back taxes are owed from contacting the county, and you know that the redemption period is 6 months. By the amount due and time frame given, it is practically impossible for this owner to redeem. Who ever wins this bid will be stuck with a bum investment. You know all this by doing your research, and you can smile to yourself knowing that you will not get stuck foreclosing that nightmare.
Bidding at auction for the properties that have the best investment will leave you feeling proud and successful. Research has shown you the intelligence and potential in your investment, and with tax lien certificate investments, you cannot lose. Your investment will either comeback to you impregnated with penalties and interest rates, or you will win the "tax lien lottery" and walk away with an excellent piece of property that you can rent or sell and make 300% more than you originally invested!
