Buying REO's.

How do Tax Liens and Tax Sales work? What is the best way to purchase a Tax Lien?

1. Know the market in the area you are purchasing, What are like comps selling for and how long are they staying on the market.
2.Build your qualified buyers list, know what they want and how they will pay.
3.Develop relationships with REO listing agents.
4.Develop your strategy. Wholesale, Re had, Hold?
5.Get the funding arranged for the strategy you decide on. Remember, buying REOs will require Money. It does not have to be yours but it has to be there to get your offer accepted.
6. Know how to estimate repairs costs accurately.
7. Make your offer based on After Repair Value, ARV times 65% to 70%(depending on your strategy) minus repair costs is your offer amount.
8. Submit your offer with proof of funds and your earnest money check.
9. Wait for reply.
10. If offer rejected, make the same offer in 30 days.

Good Luck!
Michael Mangham
MD Home Acquisitions LLC

Another great post Michael, thanks for the info this helps with the step by step process and makes more sense for me.