We all suffer from “paralysis of analysis” at one time or another, where we are reluctant to go forward with something until we know all there is to know about it.

The problem is, with most things that are worth pursuing, we’ll never know all there is to know about it. And the best way to learn what we need to know is to get started doing it. Tax Lien Investing is no different. Many would be investors never get started. Oh, they buy all the programs and ask a lot of questions, but they never feel they know enough about it to start. They get paralyzed by the fear of the unknown.

But tax lien investing is not rocket science and you don’t need a college degree, or even a high school diploma to make money at tax lien investing. So how do you know that you know enough to get started?  Or, if you’ve already started to invest in tax lien certificates, how do you learn what it is you need to know to protect your investment? From what I’ve seen in the industry, and from the questions that I’ve gotten from subscribers to my web site, I believe that there are three different stages of knowledge or learning about tax lien investing that the investor needs. But you don’t have to go through each of these learning stages before you know enough to get started.

Stage 1: Tax Lien Investing Basics

This is the initial stage for the new investor, where you’ll gain the information about what a tax lien is, and how the process works. You don’t need a lot of specific information at this stage, but you do need to know if this is something that you can do, so you need general knowledge and an overview of how you make money with tax lien investing. You don’t need to spend hundreds of dollars at this point for coaching or on a detailed course, when all you need to know are the basics, so that you can determine if this is something for you.

At this stage, here are the things that you’ll want to find out:

• What a tax lien is and why it’s good investment
• How tax lien investing can help you meet your financial goals
• The difference between a tax lien, a tax deed, and a redeemable tax deed
• Where is the best place for you to invest
• How to get the tax sale information

Once you get through stage one, you should know what your goals are, where you want to invest, and how to get the tax sale information. Now you’re ready to get started, but you will need a little more education to make sure that you’re successful. Now it’s time to go on to the next stage of learning before you actually buy your first tax lien or deed. You’ve done the preparation and now it’s time to get serious.

Stage 2: Specific Information on Your State

At this stage you’ll need to learn the specifics about how things work in the state or states where you’re going to invest. You?ll also need to know how to do your due diligence so that you buy profitable tax liens. Here’s where you can use some expert help or education. You don’t necessarily need a mentor or a coach, but you may need a course that covers how things work in your state. Or you may want to do and an online tutorial, or class. At the very least you’ll want to talk to the county treasurer or tax collector and find out about the rules of the tax sale.

Here is a list of the things that you need to know before you actually start purchasing liens or deeds:

• The rules of the tax sale
• Bidding procedures
• Finding the assessment data on the tax sale properties
• How to determine what to bid
• How to register for the tax sale
• Where to find tools to help you do due diligence on tax sale properties
• When and how you need to pay for successful bids
• What you need to do immediately after the tax sale to protect your investment

Once you know these things, you’re ready to purchase tax liens or deeds. You don’t have to know how to foreclose on a lien or how to track your liens to start purchasing them. That comes in the next stage.

Stage 3: Making and Keeping Your Profit

OK, by this stage you’ve purchased your first liens or deeds and you’ve done your homework to make sure that you’ve avoided any problems. Now it’s time for you to learn the fine points of investing in tax liens or tax deeds. Now you’ll need to know things like:

• How to clear the title on your deed
• What is the foreclosure process if the lien does not redeem
• What is the redemption process
• How do you pay the subsequent taxes
• When do you need to furnish affidavits for expenses
• How to track your liens

There may also be other things that you need to learn or do that are specific to the state or county that you are investing in. It’s up to you to find out how to protect your investment, maximize your return and track your profit.  At this point, depending on the size of your portfolio, you will want to devote more time to managing your tax lien portfolio. You may also want to look into getting a software program to help you manage your liens, hiring someone to do the work for you, or having a mentor that you can go to when you have questions or need to know what to do next.

As you can see, there are things you need to know to be successful at tax lien investing, but you don’t need to know it all it to take action and get started. The trick in knowing what you need to know when you need it, and having someone that you can go to for answers when you need help. You don’t need to know how to foreclose on a tax lien before you purchase one, but you do need to know how to get the tax sale information and how to do your due diligence so that you purchase a profitable lien. And you don’t need to spend hundreds of dollars on a comprehensive course on tax lien investing before you even know how the process works and what it is. Save your money and get the education or help that you need at the right time – when or just before you need it!