Have you tried investing in tax liens or tax deeds but haven’t been as profitable as you wanted?
There are 3 things that you need to be successful at tax sales. Those 3 things are…
- An easy way to find tax sales and get the tax sale information
- Knowledge of how the bidding process works in the particular auction they are participating in
- A quick and easy way to choose the right properties to bid on
The 1st Thing to Help You Be Successful at Tax Sales: Getting the tax sale information
To be a successful tax lien or tax deed investor, you need to know when and where the tax sales are. Tax sales in some states only happen once a year, in other states they can take place in different counties throughout the year. You need to have a way of finding out when these tax sales are, without having to check the local paper or call every tax collector or county treasurer in the state you want to invest in. How you do that will depend on the state that you’re investing in and the type of tax sales that you want to participate in.
The 2nd Thing You Need to Know to Be Successful at Tax Sales is the Bidding Process
Once you have the tax sale information and you know where and when the tax sale is taking place, you need to understand the bidding process. I used to say that you need to know what the bidding process is in the state that you’re investing in. But with more and more counties using different online bidding platforms, now even in the same state there could be different methods of bidding.
You need to understand the bidding method that is deployed in the auction you’re bidding in. Is it a proxy or direct bidding system? Do you know exactly what is being bid? There are even some tax lien auctions where you bid premium as a dollar amount or as a percent of the assessed value of the property. It’s very important to know what you’re bidding.
The 3rd Thing You Need to Be Successful at Tax Sales is a Way to Easily Find the Right Properties
Every investor wants to know how to choose the right properties to bid on. What they don’t realize is that is not where due diligence starts. You must pick the right areas to invest in and the right type of properties to target. You want to be able to quickly filter the tax sale list by the type of property and the right areas. Then you need a way to quickly review the filtered list of properties to decide which one to bid on.
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