Tax Lien Investing – Doing Your Tax Sale Analysis on the County Stage

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In tax lien certificates investing, there are a lot of completely different methods an investor can take. And so many components come into play. Are you solely going to analysis and put money into native counties,or will you put money into a number of areas and states? Do you propose on touring to tax gross sales, or are you searching for counties and municipalities that supply first-run or struck property tax lien certificates on-line or by mail? How a lot time per week do you propose on dedicating to tax lien investing? What’s your finances or quantity of obtainable funds?

When you reply the questions above, you may have a greater thought of the states and counties you may need to put money into. When you goal your states and counties, you may need to deal with the next questions:

  • When are property taxes due, and when do they develop into delinquent? In most states, property taxes are due a couple of times a yr. Unpaid property taxes develop into delinquent a couple of months later. As soon as property taxes are delinquent, the property is topic to a tax lien. It is very important know the “delinquent” dates in your state for a minimum of two causes: first, a tax lien sale often follows shortly after the delinquent date; second, counties will compile an inventory of delinquent properties and make these out there to the general public. A few of these lists are supplied without spending a dime on-line. Different counties require traders to submit a written request and cost a small charge for the listing. Nonetheless different counties solely submit their listing to an area newspaper for publication three or 4 weeks earlier than the tax lien sale.
  • When are the sale(s)? Most counties maintain just one tax lien sale per yr and so they happen about the identical date yearly. Some bigger counties will maintain gross sales extra usually. Additionally it is necessary to know if the county will run the sale for greater than someday.
  • Are gross sales in individual, or is there a web based public sale? Most tax lien gross sales require that the investor attends in individual. A number of Florida and Arizona counties supply on-line tax gross sales, together with Maricopa County within the Phoenix space.
  • Is project buy (over-the-counter) OTC gross sales out there? In lots of counties throughout the U.S., tax lien certificates that do not promote on the preliminary or subsequent tax gross sales develop into out there for project or over-the-counter buy.
  • Can you purchase OTC liens on-line? Many counties supply traders the chance to purchase OTC liens on-line.
  • Can you purchase OTC liens with credit score? Many counties wish to unload their struck property stock as quickly as doable, and providing a credit score choice could velocity up this course of since not each investor has sufficient capital.
  • How lengthy is the redemption interval? The redemption interval begins the day that the tax lien is first up on the market. From this date, the present property proprietor has a sure period of time to redeem the tax lien earlier than the property turns into susceptible to the foreclosures course of.
  • Does the present proprietor of the tax lien certificates have first rights to subsequent property taxes? In most states and counties, the present tax lien certificates holder has first rights to all subsequent property taxes till the property proprietor redeems the tax lien certificates.
  • Does the county need/must be actively concerned in foreclosures course of? In most counties, the tax lien certificates holder is answerable for beginning the foreclosures course of after the redemption interval expires, however there are exceptions.
  • What do I have to know concerning the foreclosures course of? Issues to contemplate are the size of the method, what sort of deed is awarded after a profitable foreclosures, and what are obstructions (if any) between getting a clear title and title insurance coverage.

In abstract, first it’s essential to resolve your goal state(s) and counties. As soon as that is decided, it’s essential to do thorough analysis on every state and county, utilizing the questions above as your mannequin. Yow will discover out a variety of this data on-line. Simply enter the county, state and “property tax”. Most of the time, you’ll be pointed to both the County Treasurer, County Assessor, or Tax Collector part of the county Web page. The extra data you’ve got a couple of county, the extra empowered you’ll really feel.

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