subject: Tax Sale Tips For New Investors [print this page] Are you involved in the real estate industry and are thinking about moving into the property investment arena? Are you someone who has always wanted to become a landlord in order to make a nice living? Maybe you just want to invest in some property in order to ensure that you will be financially stable in the future. Whatever the case may be, participating in a tax sale is a great way to get started. That's because you can purchase pieces of property at extremely discounted prices. If you are considering following this route, there are several steps you should take to ensure that you don't waste your time and money.
The first thing you should do before you participate in your first tax sale is to make sure your finances are in order. In other words, make sure you are financially able to cover the purchase price of the property as well as all other expenses connected to it. This could include registration fees and other mandated expenses. So, if you notice that a piece of property is selling for $2,500, don't think that that's all the money you will need to bring with you to the tax sale. You should also factor in the aforementioned costs. Your best bet would be to have at least $1,000 more than the listed price.
After you have acquired the right amount of money, you should then come up with a plan of action. Do you plan on purchasing low-cost properties, fixing them up and renting them out? Do you want to purchase properties that are already in good shape? What is your plan of action? Going into a tax sale, knowing what your goals are will help prevent you from making bad decisions.
For example, imagine if you go into an event not knowing which type of properties you are interested in. You end up purchasing 2 homes that cost about $10,000 a piece. Then, once you finally get home, you realize that you don't really want to deal with fixer-uppers. You decide you would rather purchase something that you don't have to put too much money or time into. However, at this point it would be too late. You've already spent nearly $20,000 that you can't get back.
Contrary to what some may believe, participating in a tax sale involves more than just having enough money. You must also have a proper plan of action. This way, you can make sure you are spending your time and money wisely.
