The 5 Steps To ENSURE You DON’T Lose Money At A Tax Lien Sale

Despite everything you’ve heard in the media, and read online, and even what some of you’re “misinformed” investor friends have said, Tax Liens and Deeds CAN be extremely profitable, if you know what you’re doing.

And i’ll be honest here – if you don’t know what you are doing (And i’ve seen lots of students and so called “Pro’s” do this), you can loose A LOT of money, and loose it fast.

But the fact that you are reading this right now, proves to me that you are committed to finding out the truth about Tax Liens and Deeds, and ready to make some serious changes in your life.

And what if getting properties like this one below, was actually possible? (Yes, I know it’s SUPER Fancy, but who’s to say you couldn’t find an old mansion for super cheap, and fix it up? – One of our students has recently purchased a HUGE mansion for only $32k!)

TLCS Blog photos

*Quick SideNote: If you want to fast track your results with Tax Lien & Deed Investing, check out this free training guide I’ve created just for you. It’ll help you avoid the 3 most common mistakes new investors in this business make.*

That brings us to the 5 Things You MUST be aware of so you don’t loose money at a Tax Lien Sale:

  1. Due Diligence – Knowing what to research and HOW to research effectively and efficiently.
  2. Planning Your Highest Value Time, so you don’t end up wasting it doing meaningless things before/during/after a Tax Lien Sale.
  3. Taking Quality Notes & Photos Before the Tax Lien Auction
  4. Don’t Get Attached To Getting A Property (And Avoiding The Shiny Object Syndrome)
  5. Know Your Budget – And STICK WITH IT

Now, lets take a closer look into each one of these.

1. Due Diligence – Knowing what to research and HOW to research effectively and efficiently.

This is where many of the so called “Investors” loose their cool.

It’s great that there is this avenue of Real Estate that pays 10-26% interest on returns, yet so many people just jump right in, and don’t actually take the time to do any sort of research on how it all works.

(And then when it blows up in their face, they’ll be the first to say its a “scam” or “outdated strategy.”

False – It’s just lazy people, not taking the time to do the pre-work.

There are a few tips I want to share about this:

A. Don’t go buying everything you see, just because it has a nice “profit potential.”

Many times, there will be REALLY nice profit spreads on tax liens, but the fact is, you could be buying a piece of land that is 3 feet wide, and 2 miles long, that the county subdivided 100 years ago, and is completely useless for the investor.

B. Know exactly where the property you are bidding on is located – find it on the county plat. We are dealing with all open record stuff, so you can head into the county office (or pay someone else too), or look online and find out where the parcel of land it. (Making sure you don’t buy the side of a highway, or part of the desert).

C. If you’re investing in your own state, actually go visit the property yourself, when you’re first starting. Get a feel for what it’s like to look at a property, and what you need to look for/avoid/cash in on.

Once you get the hang of it, you can hire other people to go to the property and take pictures for super cheap, but when you’re first starting, make a point to get to the Tax Lien or Deed sale, and to the properties you’re looking to invest in.

D. Know the area you are investing in, to make sure it’s not an area that you won’t be able to sell, should you foreclose on the lien. (Or get the deed)

A quick way to check this? Google Maps or a great website called Zillow.

Screenshot 2015-06-05 13.58.38Screenshot 2015-06-05 13.59.24

2. Planning Your Time, so you don’t end up wasting it doing meaningless things before/during/after a Tax Lien Sale.

This one seems obvious, but i’ll quickly go through some