Tax lien auctions are where the action happens, and understanding how they work can make or break your success as an investor. These auctions can take place in person at a county courthouse or online through government-run bidding platforms. Each format has its own advantages and challenges.
Online tax lien auctions offer convenience and wider access to investment opportunities. Investors can bid on liens from multiple states without leaving their homes. However, competition can be higher, and you’ll need to stay disciplined with your bidding strategy.
In-person tax lien auctions, on the other hand, allow investors to assess competition face-to-face and potentially find better deals. Some counties still require physical attendance, so if you prefer a hands-on approach, these auctions may be worth the effort.
Regardless of whether you’re bidding online or in person, it’s important to research auction rules ahead of time. Some states award tax liens to the highest bidder, while others use a bidding-down system where investors compete for the lowest interest rate. Knowing the auction format will help you develop a winning strategy and avoid overpaying.
This blog is for informational purposes only and should not be relied upon as financial or investment advice. Real estate investing carries risks, and individual results will vary. Always consult with your team of professionals before making investment decisions. The authors and distributors of this material are not liable for any losses or damages that may occur as a result of relying on this information.
