Public auctions: Most tax lien sales occur through public auctions conducted by local governments. These auctions can be held in person or online. Prospective investors should check the county or municipality’s website for auction schedules and procedures.
Online tax lien sales platforms: Several platforms specialize in online tax lien sales, allowing investors to participate in auctions from anywhere.
Purchasing directly from the municipality: In some cases, municipalities may offer unsold tax liens for direct purchase. Contacting the local tax collector’s office can provide information on available liens and the process for purchasing them directly.
Tax lien certificates: Investors can also buy tax lien certificates from previous auctions that were not sold. These certificates are often available at a lower cost and can still yield high returns if the property owner redeems the lien.
Working with a broker: Some brokers specialize in tax lien certificates and can offer guidance, access to exclusive auctions, and help with the due diligence process. This option can be beneficial for beginners who want expert assistance in navigating the complexities of tax lien investing.
Real estate investment groups: Joining a real estate investment group can provide opportunities to invest in tax liens collectively. These groups pool resources to purchase liens, offering a way to participate with lower individual investment and shared risk.