Do you have to go to auctions to invest in Tax Lien Certificates and Tax Foreclosed Homes? Answer: No.
Is it possible to safely invest in Tax Lien Certificates and Tax Foreclosed Homes in other parts of the country without being there? Answer: Yes.
If I’m investing out of state, how do I know if it’s a great investment? Answer: Proper Due Diligence – please keep reading.
These are some of the more commonly asked questions we receive regarding investing in Tax Lien Certificates and Tax Foreclosure Property from the comfort of your home.
The main strategy we developed for safely investing in Tax Lien Certificates from home is called “Assignment Purchasing,” and can be done online and offline depending on the county.
As you may or may not know, the way the Tax Lien Certificate process works is this… once property taxes are one year delinquent, the county government is going to hold a sale and offer Tax Lien Certificates for sale on all of the delinquent properties in their county. When the sale concludes, in many of the 2,000+ counties across the United States that offer Tax Lien Certificates, there are literally thousands of Tax Lien Certificate’s that do not get purchased. These Tax Liens get taken back by the county, and are placed in their excess inventory.
The biggest inaccuracy / myth about the Tax Lien Certificates and Tax Foreclosed Homes that are not purchased at the sale is that they’re the “leftovers” no one wanted. Nothing could be further from the truth! It’s been our experience over the past 20 years of expert Tax Lien Certificate investing that in many instances there simply aren’t enough investors present to acquire all of the valuable Tax Lien Certificates and Tax Foreclosed Homes.
Disclaimer #1: There are some counties that historically have lots of competition. In counties where bidding competition is high, you can expect that most of the Tax Lien Certificates and Tax Foreclosed Homes will be purchased at the sale, which leaves basically no opportunity for “assignment purchasing.”
Disclaimer #2: Every year 3 to 5 billion dollars worth of Tax Lien Certificates are available, and millions of highly profitable Tax Lien Certificates are taken back into inventory because they’re not purchased at the Tax Lien Certificate sale. These valuable Tax Lien Certificates are available for you to acquire from the comfort of your own home via the strategy of “assignment purchasing.” There are always more than enough profitable Tax Lien Certificates available for you to acquire.
Step 1: Contact the county or counties you have an interest in via mail, e-mail, or telephone. For this short article, here’s the basic information you need from them:
- Do they allow investors to acquire Tax Lien Certificates that weren’t purchased at the Tax Lien Certificate sale?
- Where and how can you acquire their catalog (list) of Tax Lien Certificates available in their inventory?
- What is their interest rate and redemption period?
- Any printed or online information available on Tax Lien Certificate investing in their county.
Step 2: Acquire their catalog of Tax Lien Certificates available for purchase “over the counter,” which simply means you can acquire them directly from the county without having to go to an auction.
Step 3: Complete thorough due diligence.
Step 4: Acquire the Tax Lien Certificates you have an interest in (Note: depending on the county, you can acquire these Tax Lien Certificates online, through the mail, or by physically going into their office).
Again, the most important step to help insure you’ll always safely make money with Tax Lien Certificates and Tax Foreclosed Homes is completing thorough due diligence.