Tax lien auctions have become quite popular in recent years. With the real estate market taking a turn for the worst and the stock market remaining unstable, people have jumped on new ways to make money through investing.   Investors have been turning to tax sale auctions rather than traditional real estate, which requires much more capital. 

“Real estate investor seeks apprentice, 10k a month.”  This might sound familiar to some- the token real estate investing advertisement feeding off the ideas of those wanting a piece of a lucrative industry. And it’s well-founded! Real estate investing is a very profitable business but only to a very lucky few does it come in the form of a simple phone call.  Investing in real estate requires knowledge and fervor in order to make a serious return.  The savvy investor will take advantage of the tools available and exercise every entrepreneurial bone in their body.  

If you are thinking about investing in real estate, you might want to consider investing in tax liens.  Tax lien investing has proven to be the best real estate venture for those that have limited capital and are looking for a guaranteed rate of return. While flipping homes seems to be the most popular real estate investment because it is widely known, tax lien investments are a hidden secret to investors. Investing in tax liens assures that your capital will go towards something that is profitable and with a set time period where you can anticipate realizing your profit.

During the tax lien sale process a governmental agency administers a public auction when there are more than one prospective investors seeking out the lien.  When considering the tax lien auction process investors should be aware that the bidding systems for tax liens vary from state to state.  Depending on the state, some counties have a set system while others can adhere to any system they’d like.