Investing Mistakes in Tax Liens and Deeds

What is the biggest mistake investing in tax lien and tax deed especially for beginners? They don't do their share of doing research on the properties they're interested to bid on.

Every state or county has different set of terms and rules on how to conduct their auction. The State of Ohio has different terms of sale than the rest of the states in the country.

So if you're getting a tax lien or deed at an auction and end up being the successful bidder but not able to purchase it due to not having the proper form of payment, then you are out of luck. Some counties only take cash, some counties takes certified, cashiers, personal checks or money orders. Some counties give you an hour to pay for the winning bid. Some counties allow you to pay a down payment then mail in the balance within 24 hours or in 30 days. The state of Florida requires you to pre-register and deposit a non-refundable fee of $200 before you can start to bid.

It is best to understand the process of a tax lien auction. This event for some states only happens once a year, this gives you a plenty of time to do research. Contact the county tax department or the person in charge for the auction and ask them the details for the upcoming sale, like when and where it will take place and what you need to bring. Spend time to take a personal visit on the property you are interested in because you might end up owning that property if owner won't claim it back.

Now you need to remember that counties auctioning off property liens because they need the money to replaced funds from unpaid taxes. Certainly, they won't take credit and that you will need to have the cash on hand, often in the form of a cashier's check or in any other form of payment.

The most important thing is, you need to visit your counties website and print out the tax lien or deed sales rules and study them. Call the county if you have any questions and want some clarifications regarding their terms. This is a good step to make sure you will not lose your investment and on your way to profits.

Tax lien investing may sound easy, but it is risky. For beginners, you need to understand the ins and outs of a tax lien or tax deed auctions and the specific laws of your county before you get involved.
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 To learn even more about it, visit http://www.taxsalessecrets.com/taxliens.html?orid=10519&opid=1 for some tips and additional details.

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