If it is your first time to buy a tax lien, it is a nice idea to start in your own county. This is the best thing to do because you are able to check out the property you’re interested, as well as its surroundings. Although you are not allowed to check the inside, this is still better than aiming for those properties on far locations or situated in other states.
Just like any other investments, there are some risks associated with tax liens. Investing in tax lien certificates should just be the same as any other type of business. In some states in the US, you may be required to take deed when you end up with an unprofitable property, in which you have bought its lien certificate. Being the new owner, you could potentially lose your investment because of a worthless property. This is why there is a need to research ahead the property you are interested, just to make sure it would be profitable in the end. Although tax liens have its risks, it is considered by many investors as one of the safest way of investing in real estate.