Tax Deed Tips

Tax Sale Investor Mistakes

Tax Sale Investor Mistakes

The biggest mistake new tax lien and deed investors make is they don’t do their research on the county or the property.

Imagine each state and county are like the game of Monopoly but each county has a different set of rules on how to play the game. This is how each county is in the USA. The general principle is the same but the rules are slightly different everywhere you go.

For example: if you end up getting a tax lien or deed at the auction and you don’t have the proper form of payment you are out of luck. Some counties only take cash, some counties only take certified checks, some counties give you one hour after you win the bid to bring your money in and pay for the property or tax lien. Some counties allow you to pay 10% down then mail in the rest in 30 days.

Los Angeles county requires you to pre-register 30 days in advance and deposit a refundable $5,000 just to get into the door. Imaging if you go through the work of looking at properties and show up to the tax sale ready to buy properties dirt cheap and they don’t let you in because you did not read the rules properly. The truth is that this happens every day.

The most important thing you need to do is visit your counties website and print out the tax lien or deed sales rules. Study the rules follow the directions. Call the county if you have any questions and you will be on your way to profits.

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