The assumption that TAX LIENS and TAX DEEDS auctions and processes are conducted uniformly across all counties within a state is false. Much more needs to be done in terms of preparing for an auction in each particular state.
The information provided to you as an investor or researcher may differ from county to county and therefore from auction to auction. Consider Florida as an example. In this state, some counties will offer “TAX DEED documents”. A title search, foreclosure notices to owners, and other details pertaining to the property are included in these documents for TAX DEEDS properties. Even though it’s a wealth of knowledge, not all counties make it available to you. However, if you are aware that some county officials in the state do, you will know to request it in hopes that they will.
State-to-state variations in DEEDS or LIENS auctions are also common. Consider the contrast between online and live auctions. Some counties even use a combination of the two. In Ohio, several counties provide TAX LIENS, while others provide TAX DEEDS and others provide both. State laws govern the collection of overdue taxes, but it is up to the state to interpret those rules and make use of whatever latitude it may be given.
Remember that the costs and deadlines for registering property DEEDS or LIENS can differ greatly. This information should be collected prior to making a purchase as it will influence your hours.
It is critical to realize that purchasing TAX LIENS or TAX DEEDS takes time. While the benefits are amazing, the process is not simple. DUE DILIGENCE experience is required for the process. Don’t waste time and don’t leave any question unanswered.
Even before investing in TAX DEED or TAX LIEN, know how to answer these questions:
- Which strategy should I invest in?
- Where should I focus my investment efforts?
- How much money do I have available to invest?
- What is the estimated time for me to have a return on my investment? Short, medium or long term?
- What result do I want to achieve?
- How much of my time per week will I dedicate to this strategy work?
The answers to these questions will determine which type of strategy you should invest in to improve your chance of success.
