Buying Real Estate Tax Liens and Deeds From Surplus Tax Lien Lists

Also referred to as “over the counter” purchases, property and tax lien certificates that don’t get sold at tax auctions are made available to investors on surplus tax lien lists. Purchasing these liens can be a strategic move for investors.

Although it can be a little easier to purchase from a surplus list than compete at auction, it would be wise to be wary. Purchasing taxliens and deeds from surplus lists doesn’t mean you can skip steps. There might be a reason these properties weren’t sold at auction. Even more diligence is often required.

Investments should never be taken lightly. Doing so is not investing, it’s gambling. The thrill of the sporadic win in a casino, unless you’re addicted, is no match for gambling with investment capital. You can walk away with a few dings but most people recover.

A bad investment can take you out of the game.

Begin by getting a hold of the Tax Deed Surplus Land List in your county and/or Tax Lien Certificate Surplus List in your county. Not every property on the list will match your plan. Skip those that don’t and resist the urge to bid on them. Focus only on the certificates or deeds to properties that are a good match.

Next, get the rules to the surplus land auction in your county. Remember that every county is different and don’t assume that the rules for auctions in other counties in your state are the same or even similar. Get the rules and familiarize yourself with them.

Is the auction process first come, first served? Will you automatically get the maximum interest rate on leftover tax liens? Knowing these answers will reduce your risk.

If you’re purchasing the deed to a property from the surplus tax lien list, research the type of deed you’ll receive to determine it meets your personal guidelines for investing. If it doesn’t, be willing to walk away. Remember a good deal is only a good deal when it meets your own qualifications for success.

Buying over the counter tax liens and tax deeds can put money in your pocket if you follow through: plan, research, and qualify. These three things will minimize risk and help you reach your financial goals. 

Please watch my free video series to learn more about tax lien certificates and tax deeds investing. Other than the investment you make in yourself, it’s the safest and most profitable investment you’ll ever make.