What will be the COVID-19 epidemic’s impact on tax lien investors in the coming months?

Most states in the U.S. have enacted either a shelter in place or stay at home order for the last few weeks in response to the COVID-19 epidemic. As a result of this, most live tax sales (both tax lien and tax deed sales) have been cancelled or postponed.

A small number of counties have chosen to conduct online tax sales in stead of live tax sales in response to the shut down, but this is the exception rather than the rule. Even counties that have online tax sales have cancelled or postponed their tax sales due to county and municipal government office closures during this time.

What will all this mean for tax lien investors in the next couple of months? That depends on how long it will be before local government offices are opened again. The fact remains that municipalities and counties will have to have these tax sales this year in order to meet their budgets. Especially after the additional monies they will have to spend because of the impact of COVID-19. For now, some online tax sales will go ahead as usual, but most tax sales will be postponed until a later date.

Advantages For Tax Lien Investors

Some tax sales that were originally scheduled for March and early April, have already been postponed until May or June. Others counties have yet to set a tax sale date. They are waiting to see how long their state (county and municipal government offices) will be forced to stay closed. Once these offices are open, they will schedule their tax sales. When this happens it will be a boon to the tax lien industry. There will be many tax sales going on in different states around the country at the same time. This will give tax lien and tax deed investors a great opportunity to choose the best places to invest.

I do believe that this will lead to more counties conducting online sales. Just recently a county in Alabama and a county in Georgia had their first online tax sale ever this April. I believe that will lead the way for other counties in those states to follow suite. Another state that may have more counties start conducting their tax sales online is Texas. Texas has had the legislation in place for online tax sales for a couple of years now. But only 2 counties have taken advantage of these laws. After this more Texas counties may see the benefits of online tax sales.

This Could Also Lead To Some Disadvantages

This could be advantageous for tax lien investors, but it could also be a disadvantage. Why? Because this may lead to a flood of new institutional investors in the tax lien market. With more tax sales going online, and the recent crash of the markets, more banks and hedge funds may be looking toward tax liens as a way to invest their money with less risk.

So now it will even be more important to pick the right tax sales to bid at and the right strategies for investing in tax delinquent properties. That’s what I’ve been helping tax lien investors do for the last 15 years! And I can help you too.

One way that I’ve helped a few investors in the last couple of years is with my Get Profitable Tax Liens laser coaching program. Here’s what some of my coaching students have been able to do in just a couple of months after starting this program:

• One client from California got 7 tax liens in the Indiana online tax sales

• Another client from New Jersey got 11 tax liens after attending 2 live tax sales.

• Another client from Louisiana got a few tax liens at 18% in the Mississippi tax sales.

• Another client from New Jersey got 3 tax liens – all at 18% at his first tax sale.

• One client got a tax lien in the Indiana online tax sales without paying any premium – and he was bidding from West Africa!

Learn how the Get Profitable Tax Liens Laser Coaching can help you Avoid Costly Mistakes!

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