If you’ve ever downloaded a tax sale lists or a list of tax deed properties, you probably looked at it for about 30 seconds, your eyes dilated, then you set it aside and never went back.
Does that sound familiar? I think that’s the case with most new tax liens and deed investors, so don’t worry you’re not alone.
The cure for the confusion and dilation of the eyeballs starts with your investment criteria. You will consider different criteria for tax liens than you would for tax deed properties so let’s examine both.
When investing in tax lien certificates, your ultimate goal is to make a state-mandated interest rate over a long period of time. You’re looking for a safe, secure investment strategy. Here are some things that you may want to consider when looking at a tax lien certificate list:
- Tax lien amount – how much will you have to pay the county to purchase the tax lien certificate? That’s important to consider.
- The more you pay into an interest accruing investment, the more you will make.
- Property type – this is valuable information when considering your investment value. Raw, undeveloped land won’t have as much investment value as a single-family residential home will.
- Property value – since your tax lien is backed by the real estate upon which the tax lien was created, you want to make sure the property has sufficient value to make your investment safe and secure.
In most tax lien cases, you will not end up with the property. But you want to make sure the property meets certain fundamental criteria. Most tax lien investors won’t do the same level of due diligence on a tax liens as they would on a tax deeds. You know you will end up with a tax deed property so you want to make sure to check as many criteria boxes as you can.
In our next post I’ll talk more about criteria for tax deed properties.
No Risk Investor is the ultimate resource and tool for tax liens, tax deeds, and real estate investors all over the world. No Risk Investor takes incredible pride in its ability to help students take action, get into properties, and begin the journey to financial freedom. No Risk Investor provides county lists, property lists, online auction lists, comprehensive training and education, an auction calendar, and online auction center, an investor community and much more for its members.
