Want to invest in tax liens or tax deeds, but having trouble choosing the right place to start? Here are 3 things to consider when choosing where to invest…

1.Which tax sales are happening in the next couple of months? 

In many states tax sales are seasonal. They don’t happen all the time. There are a couple of redeemable deed states with counties have tax sales every month. But most counties will only have a tax deed or tax lien auction once a year. Ideally you want to pick a state to invest in that has tax sales that you don’t have to wait a few months or even a year to participate in.

2. Where do you live?

Do you live in a state that sells tax liens or tax deeds, or do they sell redeemable tax deeds? It’s always better to invest where you know the property values and know the market. But what if you live in a state that sells tax deeds and you want to invest in tax liens. Then look for the nearest state that has tax lien sales. Or is there a state that you like to visit or vacation in? Or a state where you find yourself frequently traveling to for business?

3. How much money do you want to invest in tax liens or tax deeds?

It takes more money to buy tax deeds than it does to buy tax liens. At a tax deed sale you are actually buying the property, therefore the price can get bid up pretty high. At most of these sales you payment must be made the day of the sale with certified funds. There is no time to get financing. So you do need a lot of cash for tax deeds and redeemable tax deeds.

There are also tax lien sales where premium is bid for the tax lien. Premium is an amount over and above the face amount of the tax lien. The successful bidder in these tax sales is the one who is willing to pay the highest amount for the lien.  In some states interest is paid on the premium amount that is bid and in other states no interest is paid on the premium amount, only on the certificate amount. And in a couple of states the premium is not returned to the investor upon redemption of the tax lien.

You’ll need to have more to invest in these auctions then in tax lien auctions that use other bidding methods, like bidding down the interest rate. It’s imperative that you know the rules and procedures of the tax sale before you decide to participate. I also advise my coaching clients to get results of previous tax sales so that they know just how much money they’ll need. And whether or not that sale worth their time and effort.

Making it easier to invest in tax liens and tax deeds

It’s really helpful if you have access to a resource that let’s you know what tax sales are coming up across the country. Like the resource that my clients and I use to do so. Not only can we find out what tax sales are coming up across the nation, but we can filter that information to find only the tax sales that we’re interested in. Such as only online tax lien sales coming up in the next month, or live tax deed sales happening in the next 3 months.

Once we do that, we can use this same resource to filter the properties in the tax sale to the type of properties we want to bid on. We can also filter the tax sale properties by location, starting bid or amount of the lien, assessed value of the property, or market value of the property. We can go through the filtered properties quickly to find the ones that are worth bidding on.

This is a resource that I make available to all of my clients and to members of the Tax Lien Profits Accelerator™. Find out more about the benefits of being a member of the Tax Lien Profits Accelerator™ at https://taxlienlady.com/membership.