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A Huge Misconception by Tony Martinez
It is faulty to think that all counties in a state operate their tax lien or tax deed auctions and processes exactly the same. While it is helpful to read our state summaries in the Ultimate Listing Service, it is general information that broadly encompasses the state as a whole. In order to fully prepare for an auction in any given state, much more needs to be done to prepare.
What can vary from county to county, and therefore auction to auction, is what information is provided to you as an investor/researcher. Let’s take Florida as an example. Some counties in that state will provide ‘tax deed documents.’ These are the foreclosure documents for tax deed properties; they contain a title search, notices of foreclosure to the owners, and other specific information to the property. So, while this is a gold mine of information, not all counties offer it to you. But know that some do in the state, you will know to ask for it from county officials regardless in hopes that they will.
How properties or liens are auctioned can also easily vary within a state. Take for example online auctions vs in person auctions. There are some counties that even do a hybrid of the two. In Ohio, some counties offer tax deeds, while others offer tax liens...and some both. While state laws govern delinquent tax processes, it is up to the state to interpret them and utilize any flexibility they are allowed.
Consider that fees and lien ownership or deed recording time frames also vary significantly. Be sure to collect this information before you buy as it will affect your time plan.
It’s important to understand that investing in tax liens or tax deeds is time intensive. The returns are unbelievable, but that doesn’t mean it is easy. The process requires expertise in due diligence. Don’t leave a single stone unturned or a question unanswered.
Tony Martinez is the Co-Founder and Co-Chairman of the US Tax Lien Association, which is an organization that is committed and dedicated to helping others achieve total financial freedom through the power of investing in Tax Lien Certificates. With over 20 years of expert experience, Tony is the world's #1 authority on the subject of creating enduring wealth through the little know strategy of investing in Tax Lien Certificates, which gives anyone the opportunity to earn guaranteed fixed rates of returns of 18% – 36% interest per year, and acquire valuable real estate for approximately 10% of market value.