Many beginning tax lien investors make the mistake of jumping into the game without doing any prep work. This results in a bad investing experience and they’ll likely give up without ever knowing what they did wrong.
Luckily, there are three easy ways to make the most of the many benefits tax liens have to offer.
Let’s take a look at what it takes to be highly successful in the lucrative world of tax lien investing:
1. The absolute most important component to tax lien investing success is proper research. You need to know exactly what kinds of properties are connected to the liens you want to buy. You should know how much it’s worth, if it’s in a good neighborhood, and if it’s in good repair.
These are critical points to consider. When you buy a tax lien, you may need foreclose on the property if the redemption period expires and the owner still hasn’t paid off the delinquent taxes. You won’t want to own a broken down shack in the middle of a ghetto. Check up on the properties. It’s the only way to rest easy that you’ve made a good investment.
2. Create a list of the liens that pass your due diligence inspection. These are the liens you’ll be bidding on at the auction. By making a clear and orderly list of the liens that you want, you’ll avoid any risk of losing out on prime liens because you forgot to bid on them.
Keep the list of lien ID numbers on your lap during the auction. Each time the auctioneer calls off a new lien number, check it against your list. This will quickly tell if you want to bid on the lien or not.
3. Call out your bid with authority. Don’t speak in a quiet, timid voice. This will result in your bid going unheard. You should match the volume and pace of the other bidders in the room. It’s very easy to do. Simply watch and listen.
You’ll quickly detect the bidding tempo and volume being used. Now, do your best to match it. Strong bidding is a key to tax lien investing success.
The above strategies should point you in the right direction. Tax lien investing is very fun and profitable– if you do it right. Use these pointers to make your next investment the best it can be.
