Joining tax sales can be a very fun experience as well as profitable. Once you have an idea when the next sale is coming up, obtain immediately a list of the properties for sale in your area. You can call the office of the tax collector and ask for information regarding the upcoming sale. Remember that tax sale lists are public information. You can also purchase from a tax sale list provider.
Once you get the tax sale list, don’t stop there because you need to do due diligence on each property. Find out if they are situated in a good location where you are assured of flipping it in the future for more profits. Also, check out if it is still in good condition and only has minor repairs. You would never want to invest your money in something that will cost more in renovations.
A common question among investors is: Which is better tax deed or tax lien? The answer to this question depend if you want to double your investment or own a property. If you are just looking to receive interest on your investment, then tax liens can do the job for you. But if you want to own a property, then tax deed properties are more suitable. Either way, you would surely be creating a great portfolio in both ways.
Whether you want to invest in tax deed or tax lien, here are a few things to remember first:
a. You must have a capital no matter how small or big it is in order to invest
b. Do a research on all properties included in the tax sale. Don’t worry because information of the properties is public record.
Once you have found the properties that you’re interested, make a game plan on how to win them over other competitors. You can also seek advice from a realtor in the area. These tasks can save a lot of trouble as you go forward.