Tax lien auctions may not take place in secret under the cover of night, but the fact is that most people who have never attended such an event are completely unsure of where to find one. Many counties hold just one annual tax lien auction. And some counties don't offer them at all, so you may need to do a little traveling. To find a tax lien auction, visit neighboring county websites, where you'll find dates and inventories. The next step is to undergo the registration process, which is necessary in order to participate. When making your reservation, inquire about any fees involved. Registration fees are not commonly enforced but you wouldn't want to be caught off guard when you arrive at the auction without the necessary funds to pay a fee you weren't aware of.
Savvy is Smart
Here's a trick for getting an edge over your competition. In order to bid at an auction, you first must fill out a W-9 form for each property you bid on. This is a form for people who are receiving income without taxes being taken out and is used for all independent contractors =. Typically you get one card, which you fill out with your social security number, so you get just one shot at the property. But, if you fill out one card with your own social security number and one with your corporation's tax payer identification number, you get two chances. This will give you a good advantage over other bidders unfamiliar with these strategy.
Payment
The government put a tax lien on these properties in the first place because the owner did not uphold their obligations to pay. So they're not about to take any chances and accept your personal check or your word. Almost every county will demand certifiable payment from you, such as a money order or a cashier's check. Some auctions will request payment in as little as 2 hours, and you usually don't have longer than 48 hours to pay up. You might also be required to make an immediate down payment or even immediate full payment. So make sure you have the money to invest upfront before you drive down to the auction.
Play Detective
If you want to achieve wealth and success as a tax lien investor, you'll have to pay your dues when it comes to research. Many of your competitors will not have deigned to do so, content to blindly bid on properties sight unseen. A simple phone call to the county office can put you leagues ahead of the competition. It's not even unheard of for one investor to be the only one who shows up with required 10% down payment on hand while everyone else was under the tragically mistaken impression that they had till the end of the day to pay up. Guess who gets the tax lien when that happens? Knowledge is the key to success. If you find yourself struggling to make decisions at an auction, it means you were not prepared.
Article Source: http://www.orbitaloc.com/
Brent Crouch is the owner of TaxLienProperties.net. He has dedicated this site to providing information on investing in government secured tax lien certificates for pennies on the dollar. www.taxlienproperties.net
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