Monday, November 19, 2007

Tax Lien and Tax Deed Investing: How do You Begin?

The most asked question that I get about investing in tax lien certificates and/or tax deeds is “How do I get started?” So many people have heard about the benefits of investing in tax liens and tax deeds and want to learn how to do it, but they don’t know where to begin. Here is some practical advice for you if you want to learn how to get started investing in tax lien certificates, tax deeds, or redeemable tax deeds.

The first thing that I suggest that you do to get started building your own profitable portfolio of tax lien certificates or tax deeds is to find out what happens in your state. Does your state sell tax liens, tax deeds, or redeemable tax deeds? Next you need to find out who is responsible for the tax sale. Is it the municipal tax collector, the county tax collector, the county treasurer, or a special department just for handling delinquent taxes? Then you need to contact the office that is responsible for the tax sale and ask the following questions:

Ø How often do you hold your tax sale?
Ø Where and when are the tax sales held?
Ø Do I need to register ahead of time to bid at the sale?
Ø Do I need to be present at the sale in order to bid?
Ø What happens to properties that are not sold in the tax sale?
Ø How can I get a list of tax sale properties?
Ø How do I register to bid at the tax sale?
Ø Do I need to have a deposit in order to register?
Ø What is the bidding procedure at the sale?
Ø What are acceptable forms of payment?

Once you get the list of properties that are in the tax sale, you can do your due diligence on these properties and determine just how much you will bid. Remember, you want to invest in PROFITABLE tax lien certificates or tax deeds, not just anything that you can get. In order to make sure that your investment will make you money, and not cost you money, you must do your due diligence before you bid at the sale.

Before you go to a tax sale and purchase a tax lien certificate or tax deed, you may want to attend a tax sale just to see what it’s like. In this way you can become familiar with the bidding process in your state and know what to expect. You’ll have a better idea of what the competition is like and how much money you will need to invest. Bidding procedures differ considerable from state to state and sometimes even from county to county within a state. By attending a tax sale before you actually bid on anything you will be more prepared and have a better chance of winning a bid on a desirable property.

If you want specific information on how to get started in your state, you can try my Jet Start personal consultation. My Jet Start program can help you Jet Start your tax lien or tax deed investing. It is a 30-minute personal consultation with me, but that's not all. You also get my e-books, "Tax Lien Investing Secrets: How to Buy Tax Lien Certificates in New Jersey and Other States," and "Tax Lien Lady's State Guide." You get to download the e-books immediately and then schedule a consult with me after you have the chance to read them. This way you know the right questions to ask. You can find out more about my Jet Start program at

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