Sunday, January 07, 2007

Step Three to Building Your Profitable Tax Lien Portfolio

This is the fourth article in a series of eight about the seven steps that you need to follow in order to build a profitable portfolio of tax lien certificates or tax deeds. If you missed the previous article in this series you can read them at

Once you determine where you are going to invest, the next step in the process to building your profitable tax lien portfolio is finding the tax sale information. You need to find out when and where the tax sale is held and obtain a list of properties that are in the sale. For most areas this step will be easy, you just need to know where to go and who to contact to get this information. Sometimes you will have to pay for it and sometimes you will be able to get it free of charge.

In my e-book, Tax Lien Lady’s State Guide, I tell you who to contact in each state to find out about tax sales. I also give links to the state and county web sites. I recommend that you first contact the county tax collector, or whoever is responsible for the tax sale and ask for the tax sale information. Ask for a list of tax sale properties. Usually you can get this list for free and sometimes you can even get it online.

All tax sale lists are not created equal. Some lists will have all the information that you need to do your due diligence (the next step in the process of building your profitable tax lien portfolio) and some will only list the properties tax number, block and lot, owner of record, and amount due. It may not even include a physical address. If that is the case, then you have two choices, you can buy a detailed tax sale list that includes all of the information that you need, or you can look the information up yourself, which can be a very tedious process.

Very large detailed tax sale lists can be quite expensive, even a few hundred dollars, so if there are a lot of properties in the tax sale you would be better off to limit the amount of properties that you are interested in and look up the information that you need yourself. You can limit yourself to a particular area or to only certain types of properties to make the next step in the process a little easier. If the list is not that large and costly you may want to buy the tax sale list from a tax sale list provider. It will save you lots of time in doing your due diligence. This is a summary of step three to building a profitable tax lien or tax deed portfolio. In subsequent articles I will go over the remaining four steps to building your profitable tax lien portfolio in depth to give you an idea of what each step involves. For more information about how you can build your own profitable tax lien or tax deed portfolio, I invite you to sign up for the free preview teleseminar to my new 8 week coaching course, "Build Your Profitable Tax Lien Portfolio." To register, go to

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