August 29th is currently the scheduled date for the MS Tax Lien fall auctions.  I purchased three last year and I have only received funds from one of them so far.  I talk about buying tax liens in my ebook Trials and Tribulations of a Rookie Real Estate Investor.

I’m going to breakdown how much money I actually earned on the one I received recently.

• The delinquent amount on the property was listed at  $319.38.
• I overbid $25.00 which means I paid $344.38.
• The owner had accrued $57.49 in interest.
• I received a check for $376.87 less than a year later.
• $376.87 –  $344.38 = 32.49. 
• I made a profit on one tax lien of $32.49. 
• That is a little over 9% interest I earned.

YOU CANNOT GET A RETURN LIKE THAT WITH A REGULAR SAVINGS ACCOUNT!

This year I have a better strategy.  I wrote a 9 step checklist for myself to follow starting from reviewing my past purchased tax liens to placing pre-bids. It’s a similar checklist I have written about in previous blog posts. The checklist is in a specific order because there are things I have to do before pre-bidding starts.  In 2020, I lost money and I wrote about in Another Tax Lien Redeemed and A Lesson Learned blog post.

In order to avoid this moving forward, I will stick to bidding  15% or less.