Tax Lien and Tax Deed Auctions in the Mi States

tax lien and tax deed auctions Here’s what you need to know about tax lien and tax deed auctions in the Mi States –  in Michigan, Minnesota, Mississippi, and Missouri…

If you live in or near Michigan, Mississippi, or Missouri, now is the time to go to tax lien or tax deed auctions in one of these states!

The Tax Deed States 

Michigan and Minnesota are tax deeds states. Michigan is a very good state to buy tax deed properties, while Minnesota is not. There are a couple of reasons why I don’t recommend Minnesota tax sales. In Minnesota tax delinquent properties are forfeited to the state and sold at a tax sale. But they are not sold for back taxes. Bidding starts at the assessed value of the property.

Even when the property doesn’t sell at the tax sale and can be purchased over the counter, the price is still the assessed value of the property. No deal there, plus whether you purchase at the tax sale or over the counter, you have to pay 3% of the bid price to the county. And as with most tax deed properties you’ll have to clear the title to get title insurance. Tax sales in Minnesota do have one saving grace though. They will allow you to finance the property. But at a 10% finance charge.

Michigan on the other hand, is a great state to invest in. Many of the Michigan counties have online auctions and the state has it’s own website where most of these tax sales are hosted. Bidding starts at back taxes, fees, penalties and the cost of the sale. The property is sold to the highest bidder.  Some counties do require a deposit in order to bid. Most of the counties that have online bidding provide a lot of information on the tax sale properties online. Most of these tax deed auctions take place from July through September.

The Tax Lien States

Mississippi and Missouri are both tax lien states and they both conduct their tax sales on the same day – the 4th Monday in August. They also have something else in common and that is the bidding procedure – premium is bid in both states. That is an amount over and above the amount of the lien that is bid at the tax sale. The bidder must pay the bid amount plus the amount of the lien. But there are also some big differences between tax lien auctions in these 2 states.

Mississippi has an 18% interest and a 2 year redemption period. Missouri liens pay only 10% per annum and only 8% on subsequent tax payments.  In Missouri, any premium paid at the tax sale is returned to the investor when the lien is redeemed. Not so in Mississippi. You do not get your premium back in Mississippi upon redemption. Missouri seems like the less desirable place to invest, because of the lower interest rate, but that can actually be a good thing. Combine that with the fact that you must be a Missouri state resident to invest in tax liens there and that makes it less competitive. It also has a shorter redemption period – only one year. I like both of these states for tax lien investing.

Need Help Investing in Tax Liens or Tax Deeds?

If you need help investing in any of these states, now is the time to get it! Michigan tax sales are going on now, and will continue through the summer. Mississippi and Missouri tax sales are only weeks away and registration for these tax sales must be done ahead of time. These are tax sales that I know I can help you with. A few years ago I helped Alvaro, a coaching client from Ontario purchase 3 tax deeds at a Michigan tax sale. And just last year, my client Stephanie from Texas purchased 14 liens in Mississippi. How would you like me to go to one of these tax sales with you? Or just coach you to be able to do it on your own. CLICK HERE to learn about the 2 ways that I can help you get some liens or deeds this summer.

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Have You Ever Made This Investing Mistake?

Just a couple of weeks ago, I saved one of my coaching clients, Andy C. of California from making a huge investing mistake. His exact words to me at our last coaching session were, “Thank you so much, Joanne. I’m so glad that you told me to check whether the place is build-able.”

He found a building lot he was interested in bidding on in a Florida tax deed sale. He did his due diligence on the property and was ready to bid. But I had him do one more thing that he hadn’t thought about and he found out that the lot was not build-able as it was. In order to build on this lot it would cost thousands of dollars.

The First Investing Mistake He Avoided

He never thought to check on whether the lot was build-able or not because it was zoned residential, had road frontage and had properties around it. But after he did his homework from our coaching session, he found out that there were a couple of problems with this building lot. In order to put a house on it, it needed to be an acre, and it was just under an acre. He could get a variance from the town for only around $1000, and be able to build, except that there was one more problem.

The Second Bigger Problem He Uncovered

The road the property is on is a dirt road, and in order to build another house on that road, it would have to be paved. If anyone wanted to put a house on that lot, they would have to pave the road. Not just a driveway; the entire road would have to be paved. Now that would cost him tens of thousands and yes he could sell the land to another investor, or a builder, but who would pay for it knowing that in order to build on they would have to put up another 20, 30, maybe even 40K before they even started building!

If you’re interested in unlimited year long Get Profitable Tax Liens Laser Coaching, find out more about it HERE.

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Summertime Tax Deed Sales

bidding in the online tax sales

One of the first things that you need to do to invest profitably in tax deeds, is to get the information for the tax deed sales that you want to bid at. You need to know when and where the tax sale takes place, whether the auction is held live or online, and what the rules and procedures are that you must follow.  Here’s some information for you about what tax deed sales are coming this summer.

Summertime Online Tax Deed Sales

There are online tax deed sales throughout the summer. The states of California, and Michigan have quite a few counties that have online tax deed sales. A handful of Southern California Counties have online tax deed sales in July and August. Michigan tax sales start in July and continue through the September.

There are a few Florida counties that have their tax deed sales online. Some of these counties may have tax sales as often as once a week! New York also has a few counties that conduct their deed sale online. The state of Wisconsin has a couple of counties that have online tax sales in July, but they typically do not have many properties in their tax sale. Sometimes only 1 or 2.

Live Deed Sales in Summer

Counties in the state of Arkansas have tax deed sales all through the summer. Although these sales are conducted in the county that the property is in, they are run by the State Commissioner of Lands. A few Pennsylvania counties still have their Judicial tax sale coming up in through the end of August. The Upset tax sales will begin in September. Just make sure that you do your due diligence for this sale, because if you purchase a deed at the Upset sale you are responsible for any mortgages or liens on the property and there is no right of redemption.

Other states that conduct live tax deed auctions in the summer are Kansas, Ohio, New Mexico, North Carolina and Virginia. There are also some counties in Florida, Michigan, New York, and Wisconsin that conduct live tax sales in July August or early September.

Redeemable Deed Sales

There are a few redeemable deed states that have tax sales in the summer. Some counties in Georgia and Texas have tax sales on the first Tuesday of every month. A couple of counties in Delaware have tax sales scheduled for July. There are redeemable deed sales in Philadelphia, PA almost every week during the summer. Some Connecticut municipalities have redeemable deed sales throughout the summer as well. There are a couple of counties in Tennessee that have tax sales this summer. Davidson County conducts a live tax sale almost every month and Shelby County has an online auction at the end of July.

Where are you spending your vacation this summer? If you’re going to one of these states, why not look into the tax sales?

Member Training

Subscribers to the Tax Lien Profits Accelerator have access to Tax Sale Resources, where they can do a custom search to find out what tax sales are coming up around the country. They also have access to a group training and coaching session each month. Our next member training is Wednesday July 17 and I’ll be answering member questions live. Membership is $97 per month and you can find out more about other benefits of Tax Lien Lady’s Members Area at www.taxlienlady.com/MembershipMain.htm.

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New Tax Lien Investing Kit!

tax lien training videoI’ve just finished updating the Tax Lien Investing Kit for 2019. And I got a little carried away, well maybe more than a little….

I put together a similar tax lien investing kit 10 years ago, to help investors who want to invest in tax liens or tax deeds but didn’t know how to get started. There was so much misinformation and hype out there, about tax lien investing and I wanted people to know the truth.

The First Tax Lien Investing Kit

The first kit just included basic information in the videos and was free. Then I updated the kit in 2012 and added more information and put a $7 price tag on it. I still wanted it to be available to as many people as possible. But much has changed in the tax lien investing industry, over the last 10 years. Plus I get so many questions about different aspect of investing in tax liens that I wanted to update the kit again this year.

The Newly Updated Tax Lien Investing Kit

It took me a while but I finally updated the entire kit:

  • the “7 Steps To Building Your Profitable Tax Lien Portfolio” special report
  • the 10 video lessons
  • and I replaced the old audio on investing with a SDIRA with a more up to date webinar training on that topic.

I even pulled some information and resources from my $1997 advanced training course and put them into the kit. I added valuable resources like:

  • My 70 page State Guide To Tax Lien And Tax Deed Investing
  • Due Diligence Checklists for Tax Lien and Tax Deed Properties
  • A Video Tutorial on how to Research Tax Deed Properties
  • A Video Tutorial on paying (or not paying) subsequent taxes for tax liens

At only $47 it’s still a steel compared to the advanced training course at $1997. This way people can get a taste of what’s in the more comprehensive training to see if tax lien or tax deed investing is really something they can do before they spend a lot of money on a training course.

The new tax lien investing kit can help you get started now. To learn more about how to get started with tax lien or tax deed investing and how you can invest in tax liens or tax deeds with a self-directed IRA, go to www.TaxLienInvestingKit.com.

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Online Redeemable Deed Sales?

buying tax liens online

Did you know that there are 2 states that currently have counties that have online redeemable deed sales? Each of these states only has a handful of counties that conduct their tax sales online, and they are not the best advertised tax sales. Even so, these sales are competitive.

Results From Hamilton County Tennessee

I just bid at an online tax sale for Hamilton County Tennessee (Chattanooga). I did not get any properties in this tax sale because I was not willing to pay more than 50% of the market value for any of the properties in the sale. Even distressed houses went for at least 50% of their after repaired market value. And the really nice properties were bid up to close to their market value.

Why You Need To Look At Properties Before You Bid

Here’s a picture of a house that I looked at and decided not to bid on because of its distressed condition…

This deed sold for $48,500, only about 42% of its after repaired value according to Zillow (The Zillow estimate for this house is $115,895). Keep in mind this house looked like it needed a new roof and new siding, and that was just the outside. Who knows what it needed inside!

Here’s a picture of what I would consider to be the nicest house in the sale:

The Zillow estimate on this house is $325,103, it sold in the tax sale for $195,000, 60% of its ARV. This house was in great shape and will probably redeem before the end of the redemption period (1 year). In this case the winner could receive 12% interest on $195,000 if the deed is held for the full redemption period. Not a bad deal either way if you have that much money to park in one place for a year!

After filtering the list of tax sale properties down to the type of properties I was interested in, we drove by them. I identified 16 properties to bid on. In the last few minutes of the online tax sale, most of my maximum bids were already exceeded. Therefore, I wound up bidding on only 2 properties. In both cases I was eventually outbid. All the properties I was interested in went for over $25K and the 2 that I got to bid on went for over $50K. And they were both vacant houses that likely needed a lot of work.

Suggestions For Future Online Redeemable Deed Sales

Although houses got bid up quite a bit, there was an opportunity in this sale to buy vacant land cheap. There were a few vacant lots in decent areas that went for or not much over the minimum bid. Although there was one large piece of land in a very nice area that went for $20K, most sold for under $5K. There were even a couple of lots that went for less than $3K.

If you’re interested in attending this tax sale in the future, or attending the Shelby County TN online tax sale (both are run by CivicSource.com), keep the following in mind:

  1. Make sure you have enough cash if you’re bidding on decent houses. I would suggest at least $100K and look at the houses before you bid.
  2. Check out the crime rate in the area of the properties you’re bidding on.
  3. If you’re looking to purchase land and have at least $5,000 to spend these tax sales are worth looking into, especially if you know the areas.

Interested in learning more about other states and other counties that have online tax lien or redeemable deed sales? Check out the Buying Tax Liens Online home study course.

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