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.
I cannot believe it’s been 2 years since the first property that I acquired, renovated, and rented.
Before my most recent trip home, I contacted my Property Manager to let her know I wanted to do a walkthrough of the property. Without hesitation, she said okay and noticed the tenant.
I arrived at the property a few minutes earlier to just take in the view of the property.
The tenant greeted me when I walked through the door and I was amazed at the view. It still looked the same with the exception of a few drawings on a door. It looked really good.
As she showed me around and pointed out a few things that I needed to fix, most of which were not emergency fixes; I felt very happy and proud. She also told me that the HUD HCV Program Inspector mouth dropped to the floor when he came inside. He couldn’t believe someone would put all that work into a property in that program.
She said she loved the place and that I did a great job on it. My Property Manager who is also a Real Estate Investor loved the layout of the kitchen so much that she is going to be doing well the same layout on her next project.
I couldn’t take all the credit for the kitchen layout; I only picked out the appliances but that was the ultimate compliment anyone has given me during my real estate journey and she has a lot more properties than I do.
I wrote this point to not only continue to inspire myself, but others as well. Real Estate doesn’t have to be scary or hard when you have a good team.
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.