Feeling Lost?
Updated: Jun 14, 2022
You're not alone! Tax liens and tax deeds can be especially confusing for new investors. Even seasoned investors can find themselves utterly lost when looking over new counties or states. We understand how challenging tax sale investing can be. If you’re not sure what to do next, here are some suggestions.
1. Investment Type
Accounting for your location, resources, and objectives, identify the type of tax sale investor that you wish to become. Your first choice is between the different enforcement methods set by state law. They are: - Tax Liens - Tax Deeds - Redemption Deeds
2. Buying Method
Once you’ve selected the type of investment that you’re after, you can set your Buying Method. The Buying Methods are: - Onsite Auctions - Online Auctions - Over the Counter
For example, I could be an Online Tax Lien investor, or maybe I focus on Onsite Redemption Deeds, or Online Tax Deeds. The main point is that you identify how you would like to invest. Once this has been determined, you can begin looking into states and counties that match up well with your investment strategy.
3. Location
Your location can also play an important role in deciding where to invest. What's available in your state? We've always said if you can start in your own back yard, that's where you should begin. If you don't have local opportunities, the internet is constantly making it easier to invest somewhere else.
4. Capital
Your starting capital is another important factor if you want to make the most of it. Real estate values fluctuate throughout the country. In parts of America $100K can still get you a nice home. In other parts of the country, that same $100K would barely be a down payment. Tax sale prices tend to follow those same trends. An investment of $20k into tax sale property wouldn't get you much in a competitive market like Florida, but it might in Mississippi, Arkansas, Georgia or others. The choices you make as you get started are about trying to maximize your capital and get the most bang for your buck.
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