How To Be Prepared For A Tax Sale

Tax lien investing requires money. The range usually depends on how far you will go on bidding. It depends on the goals you have in mind. If it means investing and waiting for the profits to come, then a few hundred dollars is fine. However, if you want to make a steady income, then you are going to need a couple thousand dollars. Keep in mind that the profits of this type of investment do not come immediately. This works when the homeowner decides to redeem the property by paying you back plus the interest. If the homeowner decides not to claim it within the redemption period set by the county then you can apply for a foreclosure and in return you have the legal rights to the property. Flip it and sell it at a higher value.

It is strongly advised that you attend a couple of tax sales before bidding on the actual properties. This will give you an idea on how to bid and how much money you are really going to need to start investing in tax liens. It will also give you an insight on how seasoned bidders prepare themselves financially for a tax sale by observing them. The prices of the liens up for grabs are not a joke since many nice and profitable properties are on the list of tax lien states. You need to be ready for these things, and have a decent amount of cash in your account in order to get the property you want.

One thing, you need to do your research. These properties up for bid are usually posted several weeks prior to the sale. It will give you plenty of time to check and do due diligence on each property you are interested to bid on. Since it involves money, you need to be sure you are bidding on a profitable property. Always remember that you need to know the terms of sale in each auction you are planning to attend. Check on its interest rates and redemption period. This usually varies from state to state. Illinois and Florida has at least 2 years of redemption period. If you want faster return of investment, then select states that have shorter redemption period such as State of Vermont and Indiana which only have redemption period of 1 year.

If you are planning to venture into this type of investment, you can contact County offices for details or better yet there are a lot of articles you can look up online as your reference. You can visit http://www.taxsalessecrets.com/taxliens.html?orid=10519&opid=1 as one of them.
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About the Author

Dan Gillespie is a real estate professional who invests nationally in everything from single family homes to land to commercial properties. An owner of Dan Real Estate Depot http://www.danrealestatedepot.com