Ten Steps to Making Money with Tax Certificates

Here are the 10 steps:

1. Research – Consists of identifying areas where tax sales exist and the specifics of each sale.
2. Outreach – Process of determining how to reach the county agencies that hold tax certificate sales in which you want to participate.
3. Contact – Process of contacting the county agencies that hold tax certificate sales.
4. Preliminary information – Consists of gathering data about the tax sale and properties ibn which you are interested.
5. Determining yield – Where you calculate the factors that will affect your return on investment.
6. Evaluating redemption periods – Process of analyzing how the investment is affected if the tax certificate is paid off early or how long before foreclosure can occur.
7. Estimating property value – Where you identify the properties that will produce the highest return.
8. Methods – Process of identifying the impact that the various methods for selling tax certificates will have on the outcome of your return.
9. Application/commitment – Involves making the sale, following through on the paperwork, and closing the deal.
10. Payment – This is when you pick up the check at the county tax office, sell the tax certificate on the open market to another investor, or sell a property after obtaining the deed.