Winning certificates, receipts, and other paperwork should be filed in a safe place, like a tax lien box, folder, or drawer. Start keeping track of your liens and deeds on a spreadsheet, database, calendar, or physical filing system. You need to know when subsequent taxes are due and when the redemption period expires. Consider adding these dates to your favorite calendar, whether that’s one on your wall, computer, or smart phone. I use Outlook, but Google software is available for free.
Ultimately, you will be contacted by the county that your lien has been redeemed, and you may have to mail in your certificate or proof of purchase. The county will then send you a check for the principal you paid plus interest. You can reasonably expect about 1/3 of the certificates to be redeemed in 6 months, 1/3 within a year or two, and 1/3 near the end of the redemption period. Out of a batch of liens, 95% to 98% will be redeemed, leaving 2% to 5% for you to foreclose on and make some serious money. Note that buying in bulk (many liens) will give you a higher probability of foreclosing.
When you have liens that have been redeemed, you get your money back plus interest. However, don’t stop there. Get creative and redeploy your money. Either find an online auction or use the over-the counter lists to buy more liens and keep your money working. You may want to purchase equities, other foreclosures, or just keep it in an interest-bearing account.
If you have a lien that is never redeemed, contact a real estate attorney or tax title specialist. In some states you can do the foreclosure process yourself by notifying all owners and interested parties. Review the State’s tax sale laws for specific requirements. In most cases, you would be wise to hire an attorney or title specialist.
Once you have the deed, your title specialist or attorney will help you quiet the title as soon as possible. Finally, keep track of your records for filing taxes.
If you’ve bought a tax deed or foreclosed on a lien, you now own real estate. You will have to decide whether to rent, sell or hold. This is where it becomes exciting, but also work is involved. Did I mention that real estate is an investment and a business? Please treat it that way.
Here are a few things to consider when you own real estate:
Thank you for reading and working through 7 lessons that should get you started in tax lien investing. It’s been my pleasure to work with you briefly, and help you as much as possible. As a bonus, I am going to send you two bonus lessons. Please be on the lookout for Lesson 7+ and 7++.
Happy Investing,
Gus and Mike
Authors/Investors | https://taxforeclosuresales.com/training/
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