2021 MS Tax Lien Auction Closing

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.

Changing Strategy

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.

Tax Lien Redeemed and Another Lesson Learned

In August 2020, I wrote an article about my first tax lien buying experience in MS. Click on the link to review the post. Tax Lien Buying in MS

Yesterday, I went to the mailbox and low and behold, I received mail from MS. Immediately, I knew someone had paid their property taxes and I was getting the money I paid back plus interest which I was looking forward to. Low and behold, that is not exactly what happened. Yes, I got some money back with interest, but not everything I paid.

Here’s the breakdown on what happened.

  1. Tax lien cost $177.33
  2. I paid $199.33
  3. I received $193.29

When I looked at the stub that came with the check. it listed the delinquent amount which in my case is $177.33 and then it lists the interest on that amount which is 15.96% and that’s how I ended up with $193.29.

Now I lost $6.44 but it’s also a gain because I learned that I should have paid more attention to the training for the website and during the live auction. I’m pretty sure this is the lien I was bidding against myself on. I was in a bidding war with someone and went a little too far. LOL! I’m laughing because it’s an easy mistake to make when dealing with online bidding and attending the live auction. Normally, I wouldn’t attend the live bid, I would place my bids and wait for the results. This is not something I’m going to beat myself up over, but it is something I wanted to share because it’s an easy mistake to make for anyone.

On a positive note, let’s say I did only pay $177.33 for it and I received $193.29 with the 15.96% interest. That’s $15.96 on $177.33. You are not going to get that with your money in a bank. Keep in mind, I purchased this in August 2020 and it’s February 2021. I can’t make that much interest on $5,000 in the bank in 6 months. It’s definitely something to think about as you find ways to make your money work for you.

If you are interested to see other rate of other states, check out the link below.

Tax Lien Buying In Mississippi

Up to 16% return

It’s the Fall Annual Tax Lien Sale in Mississippi. I’m going to list the basic steps I went through to bid in the August 2020 Mississippi Tax Lien Auction. I’ve already discussed why I participate in tax lien auctions in a previous blog post. This year, I’m excited to be bidding in the state that I invest in.

NO, I’M NOT LEAVING THE COMFORT OF MY OWN HOME TO BID IN MISSISSIPPI!

It took me a while to find the website that is used by the state of Mississippi and sure enough, I soon realized the process of bidding was not going to the be same as it is in Florida or Arizona.

I’ve broken down the main steps below:

Step 1. Register with the tax auction website

Step 2. Complete the W-9 Form

Step 3. Contact the specific county I registered for to find out additional requirements of bidding.

*I recommend sending any information they require in step 3 with a signature required.*

Step 4. I checked the website every few days to see if the properties were loaded.

Step 5. I imported the entire list of properties into Excel and begin to weed out the ones that I didn’t meet my criteria.

Step 6. Once pre-bidding begin, I entered the max bid amount for the properties I was interested in.

Step 7. I chose to watch the live bid since this was my first time bidding in this state, but you certainly don’t have to.

Overall, it was a good experience, I won on a few of the properties, I was interested in.

More details will be presented in the Tax Lien Buying Course!