#5 – Tax Lien Sleuthing

With this method, you’ll be purchasing a few well-chosen tax liens at the next sale.

You will need some “patient money” – funds you can borrow or use for up to several years while you wait for the tax lien redemption period to elapse.

However, you’re not going to need the kind of money you’d normally need to do well at a tax lien sale. In fact, a few thousand dollars can be enough to make good use of this strategy, as long as you can wait out the tax lien sale before you need the money.

“Well-Bought” Tax Liens

What do I mean by well-bought? If you made a decent effort to reach out to property owners using the DeedMining technique shown in #1, you will have gotten back quite a few returned mailers. If you then go out and drive by these properties, and make an additional effort to contact owners, you will almost always determine that the owner to one of more of the properties has VANISHED!

-No matter what you do to find the owner, you can’t
-The neighbors say they haven’t seen anyone there for years
-Or, you find that the owner is deceased with no close relatives

THESE are the tax liens you’ll want to buy. Why? Nobody is around to redeem them!

Most tax liens are redeemed – up to 99% in some areas. But if you look for risk factors before buying the lien, you can do MUCH, MUCH better.

Other Notes

After you buy the lien, it could be a good idea to keep an eye on the property, because most likely you will be owning it soon. It might pay to stay ahead of city building violations or weed liens on the property – if you’re convinced nobody will ever come back to the property.

There’s nothing worse that waiting out a good property on tax sale to discover that the city has been piling on liens and demolition orders – so help the property “fly under the radar”!

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