If you are just new to the tax deed investing scene, it is crucial to learn the correct techniques for you to be successful along the way. You must take note there are lots of wrong information on the internet about tax deed that could lead to disastrous investments. Remember that only the right information can give you the key to prosperity and wealth. So, choose wisely from whom and where you want to learn about tax deed investing.
If you are having second thoughts from where to start, you can ask the local county office for a list of the tax sale properties for sale. Then, do some research yourself by looking for books, reading materials, and other reliable information that you can get your hands into. By the way, there is free information on local county websites that you can use too. You can also attend the auctions yourself and observe how investors bid for properties. Most importantly you must have money in order to bid on the properties you’re interested. Take note on all of these so that you won’t miss anything.
Sales of tax deed are different from a tax lien, though both are available at auctions held by the government. Tax deed sale occur when the local government sells foreclosed properties rather than the money owed on them. In other words, you as the investor buy the immediate rights to the property.
In order to cover the tax debt of the previous property owner, the local government has the choice of selling the lien certificate or the deed of the property. Plus in a tax deed sale, the property owner has no choice but to surrender his rights to the property.
So, for a couple of grand you can buy a nice looking house in a good location through tax deed and lien sale opportunities. These are methods which makes it possible for you to get inexpensive homes.
Every investor has their own style of bidding at a property tax sale. Also, each sale has its own rules of bidding. It is important to know which one works for you and keep doing it to get more properties. Here are some tips that can make an impact in your bids:
- Avoid confusion by labeling the properties you’re interested with all bid sheets and maps. Utilize various color schemes and highlight those you like best. Reference them with a name or tracking number for easy identification.
- Before going to auction, ready your bid list because things happen quickly in large tax sales. Be organized in order to get your favorite properties before other investors do.
- It is best to know in advance how much you’re willing to spend and the maximum bids on each property in your list.
- There are auctions which are held outdoors or in large rooms that would require you to speak loudly. Everyone should be able to hear you if you’re going to do this.
- On each property you bid on, a well crafted strategy is needed on what to do next with it once you’ve won. Do you flip it afterwards or plan on owning? Have a sound decision.
Each has its own strategy. It is up to you which one works best that guarantee of getting dirt cheap yet good looking properties.