Investing in lien property for sale is one of the most overlooked investing niches. This is unfortunate because this type of investing isn’t nearly as risky as investing in the stock market, especially considering all of the ups and downs it has been through in the last few years.
Although this type of investing isn’t as risky as other investments, this doesn’t mean that it is risk-free. There are a few things that investors must consider before doing this.
How to Invest in Tax Liens
Lien property for sale can be purchased and sold through an auction, similar to how some real estate is sold. The auction is held in person or online, and potential investors can attend them as they wish. During the auction, the investors must bid on the lien just as they would with the property. And as with other properties, there are often bidding wars involved.
Best Tip for Buyers
Places such as Mayflower Judgmentsspecialize in purchasing all types of liens, so they are a great source to listen to. The best advice these places can give to potential investors is to always do their homework before investing in lien property.
This means to consider the current value of the property and compare it to the lien amount. If the ratio is too high, say above four percent, the investment is far riskier than it needs to be. Check the condition of the property. Neglected properties often mean less chance of the owner paying the lien.
