As I mentioned in the previous post where I answered a question about purchasing left-over tax liens, I don’t think this is a good strategy for new investors. There are other ways, however, that you could purchase a tax lien (or a tax deed for that matter) without going to the tax sale. One state in particular lets you bid through the mail and will award the tax lien to the first bid they receive. The state that I’m referring to is Montana. So if you live in Northern California (California is a deed state) but you want to invest in liens, Montana may be a better option for you than the online tax sales in Arizona.
You could also purchase secondary liens through a company, or investor, that purchases the tax liens at the sale and later “assigns” or resells them to other investors. Whatever your strategy for purchasing liens without going to the tax sale, be sure to do your due diligence carefully, especially when purchasing secondary tax liens. Just because someone else purchased the tax lien doesn’t mean that they did their due diligence and bought a worth while lien. They could just be trying to get out of a bad investment.
Occasionally I will get an e-mail from someone that wants to know if I have an outlet for liens that they’re trying to sell, and more often than not, when I look into the liens, they are on unbuildable land that are not worth it.
I prefer to buy tax liens at the tax sale. How do you prefer to buy your tax liens? Let us now by leaving your comment below.
Follow Us!