When you buy tax lien certificates from the county there are a few things that you should keep in mind. Although the bulk of the work is in researching and purchasing the Tax Lien, there is still a little work to be done after the point of purchase.
The first thing to pay attention to is the redemption timeline for specific tax lien certificates. First of all, check with the county and understand any obligations or requirements that need to be met during the process (this should probably be done before the purchase). Set up a calendar and write in the dates of purchase and the end of the redemption period. You will need to stay on top of your tax liens and their potential redemption. Some counties will notify you when the certificate is redeemed and others will not. The safe bet is to call the county periodically and check in. Find out who tracks the redemption and give them a call a few times a month.
It is important to know exactly when the county Tax Liens redeem so you can invest your money again. To maximize your return you want to turn your money into another certificate as soon as possible.
Every once-in-a-while you will buy tax lien certificates from the tax sale that goes all the way through the redemption period. This is great news. At this time, you will have the opportunity to take ownership of a well-researched property. But there are a few steps that you have to follow. Check out our next post to get more details.
Keep detailed information about each of your Tax Liens. A simple solution is to enter the data into a well-organized Excel spreadsheet. You can find one on this site in the download center. Write down parcel numbers, purchase price, county contacts for purchasing and redemption, redemption period and date, property owner, property address, etc.
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