13 Feb 3 Tips To Buying Properties @ The Tax Lien Auction
Whelp, it’s that time of year again!
It’s time for the first tax sale of 2018 in Lake County Indiana. For those of you not familiar with the sale, this is the tax lien auction where the starting bid is a mere $500!
Tax lien investing, in my opinion, is BY FAR the cheapest method to acquire property and become a real estate investor.
It is ideal for those that want to purchase property but don’t want to utilize a lender or aren’t in a position to qualify for a loan.
Here are a few common misconceptions and the correct answers below:
1) Buying a property at the tax lien auction means that you own the property.
Answer: This is actually false. The only time this scenario occurs is at a tax DEED sale. If you are attending a tax lien auction such as the one in Lake County, Indiana, buying the lien simply secures your interest in the property. There are other steps to take to obtain ownership.
2) If you are the winning bidder, you are responsible for all back taxes.
Answer: This is also false in most instances. For example, if you are the winning bidder for a property for $1,000 and the actual back taxes is $5,000, you generally aren’t responsible for paying the back taxes. You are responsible for future tax bills though.
3) You have to live in the same state where the auction is conducted.
Answer: Nope, this isn’t true as well. For the most part, you can attend any auction you desire and bid on properties to your heart’s content. Aint’ it great?
Here’s a look at the properties I acquired in March 2017.