Knowledge is Success
There is unquestionably an art to winning bids at an auction. The
accomplished bidder has the right timing and the right knowledge. In
the world of tax lien investing, there are veteran investors and then
there are quite a few naive rookies. You don't need years and years of
experience to bid well and win-you just need to educate yourself. The
following outline of tax lien strategies will enable you to outsmart
even the most seasoned of investors.
Slow and Steady Doesn't Win in This Race
Auctioneers are very stingy of their time-a good tax lien property
will be history within a few seconds of the opening bid. There is a time
limit on these auction and at the slightest hesitation, the auctioneer
will grant the lien to the last bidder and proceed blithely on to the
next one. Do your research before you arrive at the auction so you'll be
able to make quick, confident decisions. A savvy investor can recognize
a good deal in a split second. The tempo of an auction can vary,
especially between smaller and larger events, so be prepared to observe
and pick up on the cadence before you join in.
Stand Up and Be Heard
Leave any shyness at home when you leave for an auction. Many
first-time investors call out bids so timidly that they go unheard.
Remember, you are competing for a chance to make serious money. Speak up
in a strong and authoritative tone.
Appetite for Success
Depending on the time constraints placed upon the auction, the
auctioneer may not take a lunch break. The majority of the other hungry
bidders will, though, so if you stick around you'll have your pick of
the prime properties with half the competition. An investor familiar
with bid up premium and bid down interest techniques will be able to
manipulate these scenarios into some very good tax lien deals.
Another secret: stay until the very end of the auction. Sometimes,if
there are quite a few properties left after the posted end time has
passed, the auctioneer will grant a time extension. The government would
much rather have these properties off their hands. There may be a 10
minute interim between the scheduled end time and the moment the
auctioneer announces his decision to continue-and by this time, many of
your competitors will have already headed home. In fact, if you are the
only investor left standing, the auctioneer will still allow you to name
your bid. Auctions don't get much better than that.
Avoid Institutional Investors
Homes are the preferred target for institutional investors. You're
wasting your time trying to compete with these guys-they have millions
of dollars at their disposal and will accept extremely low interest
rates. They can also pay off the bank and skip the whole foreclosure
process. If you have to face this kind of competition in your area,
pursue the non-residential or non-homestead tax lien properties. To
avoid institutional bidders altogether, attend smaller auctions with
more modest inventories.
You Get What You Pay For
Disclaimer: Not all minimally priced liens are worthless. However, if
you aren't able to conduct visual and background investigations a
property prior to the auction, whether due to time constraints,
location, or other reasons, it's wise to bid on homes priced over
$500.00 or $600.00. this is considered the safety line between homes
that are worthy of investment and homes that are in bad condition. Homes
above this range also have a lower foreclosure rate, which means you're
more likely to get some easy money back rather than have t take on the
risks of selling the home yourself.
Armed with these professional tax lien investing strategies, you'll
become a formidable foe to even the most experienced competitors.
If you are interested and want to learn more about tax deeds, then follow this link and you will find all the answers. 7 Steps to building your profitable Tax Lien Portfolio.
Take the first step! This is the best resource to learn the secrets of tax deed investing.
http://tiny.cc/lady
If you are interested and want to learn more about tax deeds, then follow this link and you will find all the answers. 7 Steps to building your profitable Tax Lien Portfolio.
Take the first step! This is the best resource to learn the secrets of tax deed investing.
http://tiny.cc/lady
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