- Tax Sale Auctions Are Great For Buying Bargain Real Estate Investments. Here’s A Video That Will Prepare You For A Tax Sale Auction... br br Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got a quick video on preparing yourself for tax sale auctions as real estate investors br Why do properties go to tax sale auctions? br br When homeowners default on their real estate taxes, after an allotted amount of time (and several warnings), the government has the right to sell the property at a tax sale for the amount owed in taxes. br br The owner of the property is offered a “redemption” period, varying from 6 months to 2 years, to pay off whatever is owed on the property in taxes plus any additional fees. br br Example: br - Owe $15k in taxes, bought for $20k at auction br - Standard 16-35, some states are higher br br How Do You Find Tax Sale Properties? br - Pull the list from the county tax office br - Subscribe to monthly tax sale newsletters br - Also research sites like auction.com, or other affiliate sites that hold auctions within your city, pull their list br br Researching and Preparing for the Tax Sale Auction br - Call your county clerks office - public records format? br - Register for the Auction - $10 in texas for 3 months br - Lien Background Check br - Once you have the list, google map the properties br - Pin point the addresses you are interested in br - Pull comps for the addresses of interest br - Establish - rent? flip? fix and flip? br - Consider repair costs, or complete replacement costs br - Calculate your bottom line - most you are able to bid br - Verify funds with your bank - pull out cashiers checks day of br br Bidding Process br - Some properties will be pulled - meaning the taxes have probably been paid off (explained) br - Go through list of properties you pulled from Tax office br - Vocally bid out your numbers, some places use raising of signs br - highest bid wins br - Not as intense as people make it out to be br br br Tax sale auctions are incredibly fun to attend, but can definitely be overwhelming if you do not come prepared. Some key things to remember before attending any auction are, always remember to stick to your game plan and stick to your research. I say this because emotions can be your worst enemy. br br If the property you are interested in sells for more than you can afford, don’t push the limit because you may live to regret it. Know your limits, and be proud in yourself that you stuck to them, because when that right property comes, and you get it, you’ll be happy that you were patient. br br Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you’ll be automatically notified when we upload more quick video tips for you. Take care and good investing.