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Nine Steps to Acquiring Tax Liens


Tax deeds are when you buy the back taxes from the county or the municipality that has put a lien on that property. For example, you buy a piece of property in that county, you don’t pay your taxes, whether it’s on the house, or the piece of land. Then the county takes that property to auction, and if the lien is for a thousand dollars of back taxes, they’ll start auctioning off a percentage or an interest rate, that you the investor can earn on those taxes. If the person that owes the taxes doesn’t pay off their lien to you, which happens very rarely. 95% of liens are redeemed, but let’s say they don’t, then you go through the foreclosure process and you get the asset, whether it be the house or the land. People can average between 8 and 35 percent investing in tax liens. You must do your due diligence on each state. Each state has different laws between how they run their tax deed sales. It’s about doing your due diligence on that property and getting your money out within two to three years. Which is a very nice way to get some passive income.

Within this article, we’re going to show you how we buy houses for just the back taxes owed. This is one of the most overlooked forms of real estate investing, and it’s called tax foreclosure investing, or better known as tax deed investing.

You can start today buying properties for as little as $100. For example, if a homeowner goes delinquent on their property taxes, and the house is worth $100,000. The outstanding property taxes are $10,000. You can buy that house simply by paying the county the outstanding back taxes. Let’s go ahead and find a tax deed property in a few easy steps.

Call your county tax assessor’s office and ask them if they’ve had a tax foreclosure or tax deed sale coming up. Half of the states in America have tax deed sales. You’re going to ask them how to get a list of the properties that are coming to the upcoming sale. Get the list, then look at the properties on Google Earth. The next step is to get the value on Zillow. Either you get a real estate agent to look at the property or you look at the property yourself. You should find out if you can buy the property that day from the county, or if you must attend the county’s tax foreclosure or tax deed auction. Get the date of the tax foreclosure or deeds auction, so you can go ahead and attend the sale. Buy a property at the sale. The cool thing is you can often buy your properties online right from your home computer. Go ahead and sell the property to an investor.

Once you’ve sold the property and have gained valuable experience, repeat and start the process over again.

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