Tax liens are issued to people who fail to pay their property taxes. Tax liens are sometimes sold to third-parties, who will then own the property. They make for a great way to invest in property if you handle them correctly. The following is a look at where to buy tax lien certificates online.
Through a Local/State Authority
A tax lien is commonly issued by the local or state authority. It’s rare – but possible – for a tax lien to be issued by federal authorities. As such, the easiest way to purchase a tax lien certificate would be through the local or state authority. Your local/state authority should have a website that lists all of the lien properties coming up to auction.
Going through the local/state authority to get your tax lien certificate represents the safest method. There’s no risk of being scammed with this method. You can be sure that you’re following the process properly and all transactions are legit and legal.
Tax liens are most commonly traded at auctions. Even if you purchase through the state authority, you will be expected to attend an auction. There’s no need to physically be there, however, as online auction sites for tax liens are becoming increasingly common. These tax lien auction sites are just like any auction website. Find your tax lien, make your bid, and don’t forget to up the ante if you need to. Just be careful to avoid getting caught up in bidding wars. The more you pay for a tax lien; the less the potential return on investment.
You’re unlikely to run into a problem with an online auction, even one outside of the website of your state authority. These websites rely on a large and friendly community to make money. This community can also help you through the process and give you any assistance or advice you need. Just find yourself a great auction site that comes with a friendly community and you’ll be set.
Auctions aren’t the only way to get your hands on a tax lien. It’s possible to let someone else take care of the work for you and then purchase the lien directly from a broker site. It’s one form of investment in tax liens. Find the right one for you by searching through the choices and filtering the results for your budget and location.
There is one thing to be careful of when using a tax lien broker site; you should only use high quality, trusted websites. It’s important you only trade with a broker site that has plenty of expertise and a strong reputation. It’s the only way to really protect yourself from scams or bad properties. The good news is that these bad quality sites are few and far between. It takes just a few quick searches online to find – and assess the quality of – a broker site. One advantage of using these kinds of sites is that they have quality experts on staff that can help you through every step of the process and answer any questions you have.
There are several options when it comes to buying tax liens online. The choice of which one to go with is up to you. What matters most is that you do your due diligence; find out more about the property – and the website you’re using to buy it – and you should rarely if ever, run into problems. A little homework goes a long way, and that’s especially true of investments such as tax lien certificates.