Here are the things that I do before bidding in any tax lien auction.
Register with the county and mail in any documentation that is needed (Recommend mailing with a tracking number or signature)
Review my checklist of what type properties I’m going to be bidding on
Update that checklist if I need to
Attend the training held by the county auction company (They may have made a change to their app since the last time I used it)
Download the list of properties to Excel and sort out by my criteria
Research properties that I’m interested to make sure they match my criteria
I don’t always attend the auction while it’s live on the computer. I have, but I find that it’s boring unless you see your bid winning. I do recommend if you are bidding for the first time to watch at least the first day live.
Back in 2019, I decided to invest in a rental property in Detroit, MI with an investment club. I found the leader of the group via YouTube. I had been watching her videos for a year and I liked the information she was putting out regarding business and making your money work for you.
I know there are questions people want answers to like:
1. How do you know if you can trust that person?
2. How often will you receive your portion of the profits?
3. How long will you own the property?
Truth, I didn’t know if I could truly trust that person, but we have a contract signed with all owners that lays out everyone’s percentage and how often monies will be disbursed. There is also a clause about what happens to the property after so many years. When you think about, even if I had a personal relationship with this group of investors, I would still want a contract.
Fast Forward to Present Day!
I’d like to say that it’s been a learning experience for sure. Some things have gone well and some things have gone not so well. Let me just say, I’m so glad I didn’t pay a whole lot of money.
First, we didn’t really get payouts every quarter because the tenant stopped paying rent. Yes, before the pandemic happened the tenant stopped paying rent. It’s a sad situation because the group is being told that the tenant is not affected by Covid-19. She’s still working and not paying rent.
The owner of the investment club posted a video on YouTube about the experience. I’m linking it below
Every now and then, you have to switch it up and do something new or different.
Real estate investing is no different. I don’t know many investors who only do one type of investing. Most have done at least two types of real estate investing.
This year, I’m going to try something while bidding on tax liens. In the past, I’ve been afraid to bid on land because I didn’t know what I would do with it should it come to me foreclosing on the property.
However, today I’m feeling like land is exactly what I need because we have entered into a time where people are starting to grow more food inside and outside their homes. Not everyone is going to have that space and owning land for a community garden or to house someone’s animals could be a good investment.