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Date Created: 12/20/15
7 Cardinal Rules of Tax Certificate Sales Buying tax lien certificates can be a good decision especially if you want some lucrative results in running a business. Nevertheless, the outcomes can be disappointing if you don’t follow the important reminders when participating on those auctions for tax liens and even to those tax deed sales. If you are really determined to get involved with tax certificate sales and invest on one or more tax liens, there are seven (7) cardinal rules that you must consider. These rules may be optional but they are highly recommended to guarantee success on your investments, such are: 1. Why are you investing on home liens? Do you want to invest for your future or you want extra income on top of what you’re earning? Answering this question will let you determine the kind of investment that’s suitable for you. This decision alone helps you determine your bidding strategy as well as where you’ll invest. 2. Where are you going to invest? It’s also important to know the places where you’ll be investing. If you’re planning to invest on two or more counties or states, it’s best to start at one place first. Make sure that you’ve succeeded in this certain place before you invest on another location. Be reminded that each state or county has its own rules and regulations in terms of placing tax lien certificates on auctions. Therefore, you need to formulate different bidding strategies to each place that you want to invest. 3. Do you know the details of tax certificate sales? Once you have figured out the places where you want to invest, it is time to get detailed information regarding the sales and auctions. This is not that difficult though. You just need to know the direction to where you’ll be going and get any useful contact information. 4. Do you know the details of the properties or certificates that you want to invest in? This is the most important reminder when investing on home liens or even on tax deeds. It is truly vital since it creates a thin line between success and failure. Once you have procured the list of properties for sale, you further need to familiarize yourself with these properties. Another important reminder is to know how the system works since each state may have different systems when conducting auctions. 5. Are you prepared to go to the tax certificates sales? Indeed, there are some things you need to prepare before an auction. One would be your payment if you become the winning bidder. You should also have all pertinent documents required by the state. Most importantly, you should have registered already. Most counties require bidders to register at least two weeks before the auction. 6. Do you have a strategy when bidding for the tax liens? Don’t be impulsive when bidding for properties. Before the auction starts, make sure that you already know how much you’re willing to bid. It’s recommended to attend one auction before you start bidding. That way, you’ll have an idea of how the auction goes. 7. Do you know how to protect your investment? If you’re the winning bidder on these tax certificate sales, it doesn’t end there. No matter how small or big your investment is, you need to protect it in order for profits to flow exponentially. Protecting your investment includes recording the lien to the county clerk, paying taxes and clearing the property’s title.
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