| Tax lien certificates can make a great investment. If | | | | certificates are liens that did not sell at the regular tax |
| you are not familiar with tax lien certificates, then see | | | | sale. So, there are some precautions that you should |
| my article entitled "An Introduction To Tax Lien | | | | take to make sure that you are getting a good deal. |
| Certificates." | | | | First of all, start with counties that have websites. |
| Many people want to invest in tax lien certificates but | | | | Luckily, nowadays it is very easy to find a county with |
| stop themselves because they think that they need to | | | | a good property research website. Then, you simply |
| go to the live auction to do it. Yes, it's entirely true. The | | | | enter the parcel number into the website and it will tell |
| most common place to invest in tax lien certificates is | | | | you what is there, and how much it's worth. Ideally, you |
| at the live annual auction. The auction varies by state | | | | want to find properties that have a structure already |
| and even county, so check with your local county tax | | | | on them, but it's not always easy to find. |
| collector to see when they have their auction. | | | | Next, you need to see the total taxes due from all |
| Can I let you in on a little secret? I have been investing | | | | years and compare that to the tax valuation. The |
| in tax liens for several years now and have NEVER | | | | reason you need to know this is that in the event of a |
| been to a live auction. How can that be, you ask? | | | | foreclosure, you will need to pay off all the back taxes. |
| Easy! I invest in Over The Counter certificates (OTC). | | | | The worst thing is to find out that there are more due |
| So, what is an OTC certificate and how can you profit | | | | in back taxes than the property is worth. |
| from it? An Over The Counter certificate is one that | | | | Once, you find that out, then copy down the legal |
| did not sell at the live auction. In many states, when the | | | | description and call the local Realtor. Tell them that you |
| certificate does not sell, it is "struck off" to the county. | | | | are planning on investing in a certain property and may |
| The county simply has a list in their office and you just | | | | eventually need their services to resell it. I have never |
| call them up and get it. Then, you do some research, | | | | had a Realtor not give me an honest opinion of an |
| pick out the ones you want and get the lien without | | | | area. Many times, they tell me NOT TO BUY there |
| any traveling or hassles. | | | | and that's ok too. It's better to find out now than to find |
| Just because you can buy tax certificates Over The | | | | out when it's too late. |
| Counter, should you? Well, maybe and maybe not. | | | | And there you have it! With proper planning, you too |
| Remember that in most cases, Over The Counter | | | | can be an armchair investor. |