- Real Estate Bald Hills
Submitted by: Dustin Hahn
When you plan on purchasing tax liens, it is significant to always do due diligence. This is very important in order to be aware of certain transactions. Remember that knowledge is one of your best assets. Below are tips that you might want to follow to make sure you do it right.
Note that it is best to do due diligence at least 2 weeks prior to the sale while for online sales, you can start earlier before that as it is required to have money deposited to join in the bidding.
1. Look into the statutes of the county that you plan to invest to learn which liens will survive the sale. It is also recommended to know the procedure and rules of the tax lien sale in that particular county.
2. Acquire the list of properties that are included in the sale. If it s possible, also get the properties’ updates that are no longer in the sale or have already been taken every 2 or 3 days prior to the sale. This is because some properties can be taken off the list daily and you definitely would not want to take due diligence on these.
3. Check if the particular state has a website where areas with environmental problems are listed. Make certain that the properties you plan to bid on is not in this environmental problem list.
4. Make sure that you know if you will still be responsible for other fees when purchasing a property. If you found out that you are indeed responsible in paying other municipal fees then contact tax authorities and learn about the fees that are owed. Note that you may have to pay for these after buying the property at the sale.
5. Search on the name of the property owner and don’t go for properties that are owned by people who are in bankrupt status or are owners of IRS liens.
6. Always check out the property address and tax assessment data.
7. Always view the property and if you can, take a picture of it. If this isn’t possible, you can try to look it up from Google Maps or other on-line services which can provide aerial views.
8. Know the After Repaired Value (ARV) of the property. You may need to know a realtor or have MLS access to get this information. You can also do this online but it may not be as accurate.
9. Select properties based on their market value and assessment value. Also know just how much you are willing to go for each of these properties.
10. Minus the tax sale’s extra costs from what you plan to bid. These extra costs include realty transfer fees, auctioneer’s fee, and recording fees.
11. If you plan to do online bidding, have the funds required transferred already to your tax sale account so you can participate. If you opt for a physical auction sale then at least bring funds that you may need in order for you to pay in case you win.
About the Author: Dustin Hahn is the top tax liens and deed consultant today that conducts trainings and mentoring to investors who want to learn the secrets behind real estate business. He is the author of Real Estates Best Kept Secret, an e-book which is available at
easytaxsaleprofits.com
Source:
isnare.com
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