Researching Tax Defaulted Properties

Article Written By: tedthomas

The single thing that I can't repeat enough is that you have to study, study, study if you aspire to be prosperous investing in tax lien certificates and tax deeds. There's a great deal more concerned than simply looking at the statistics on a piece of paper and placing your offer.

The primary step in your analysis is to get a list of the properties going up for sale. You can accomplish this via email, online, by phoning and requesting a mailed copy, or visiting the government office in person. Some counties might have thousands on the delinquent tax rolls while others offer only a smattering. It doesn't matter how many are being offered; you really only require one good deal but the objective is to narrow that big list down to a workable few.

Usually the list of properties will have the parcel numbers and the amount of tax owed, nothing more. So if you want to know more about the parcel, you are going to have to complete your research.

You should be able to use the parcel number and either drop it in at the county's online page or cross reference it with the record books at the assessor's office. Your aim is to find an address for each property.

Once you've obtained the address, you can map out its position the net. This provides you a basic blueprint of the area it is positioned in and also allows you to investigate the value of comp properties. Nevertheless, there is no replacement for seeing the parcel in person. There may be a low-lying spot in the land or a bulging roof on the home or even fire damage to the building - you just can't tell until you see it with your own eyes. And even though there might be a picture provided in the list of available real estate, never take for granted it's accurate!

The next aspect you need to research is if there are any other liens against the property. The archives of county, state, and federal agencies index lien recordings. Another medium is a public records database you can find the net. There are lots of various agencies and individuals who could impose a lien for any sort of outstanding bill so this procedure is not simple or straightforward - but it is vitally significant. You don't want to buy a tax lien certificate or tax deed only to uncover a senior lien against the real estate that trumps your ownership claim.

Before you go to a tax lien certificate or tax deed sale, have all of your analysis completed and the data close by. As the auction begins, you will need to know the upper limit sum you are willing to bid in order to forge a profitable deal.

While you can never carry out too much research, you can do too little. The more you know, the more likely you are to strike a profitable investment in tax lien certificates and tax deeds. With the correct tools and a bit of time, anyone can be successful with this type of investing.

About the Author

Ted Thomas - Visit Ted's website www.tedthomas.com.

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