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’m pretty sure there may still be some MS Tax Lien Auctions still going, but for me it’s a wrap for 2021. Although, I had planned on winning 6 bids, I won 3.
I almost feel like I have to watch the auction live because I would have missed out on winning the three bids, I did place if I wasn’t watching some of it.
Overall, I think I did pretty well and I’m looking forward receiving some mailbox money after the first of 2022. Why after the first of 2022?
Well, because we are almost into the holiday season and some people are going to be too busy shopping for presents, taking trips, etc, not thinking about those property taxes until tax season which is what I’ve come to love about bidding on tax liens in August.
With any tax lien auction, I’m always planning ahead of time. I try to give myself a few weeks so that I can research properties and perform my due diligence.
I refuse to repeat the same mistake I did last year so I stay on top of deadlines and check the website daily just to make sure there are no new updates. Most platforms will email you if there are changes or updates so no worries if you don’t have time to check the website daily before the auction starts.
There is a tropical storm headed towards the gulf coast area soon. I received an email from the company that is in charge of the auction stating to take advantage of the pre bidding feature because the auction is happening whether they are affected by the storm or not.
I was already planning to pre bid anyway, but it’s nice to have that reminder. With that being said, I’ve already completed my research and I’m ready to start placing my bids tomorrow.