| This is the six article in a series of eight articles about | | | | Sometimes you will be allowed time to go the bank |
| how to build a profitable portfolio of tax lien | | | | and get payment after the sale. In this case you will |
| certificates or tax deeds. If you missed the previous | | | | be able to go to your bank and get the certified |
| articles in this series you can read them at | | | | funds in the exact amount that you need. When |
| Once you've done your due diligence on the tax sale | | | | you're not allowed the time to go to the bank, you |
| properties that you intend to bid on it's time to | | | | will have to have the certified funds, made out to |
| prepare to go to the tax sale. Preparing to go to the | | | | the county tax collector, with you at the sale. In this |
| sale consists of registering to bid at the sale along | | | | case, come up with your best estimate of what you |
| with getting your paperwork and payment in order. | | | | think is the most that you will spend and get certified |
| In most states you need to register before the sale | | | | checks made up in different denominations that total |
| in order to bid. Depending on what state and county | | | | the amount you think that you'll need. This way if |
| you are investing in, you may need to register as far | | | | you have to wait for a refund check from the |
| as two weeks before the sale, or you may be able | | | | county for your change, at least it won't be for a |
| to register as close to the sale as a few minutes | | | | very large amount. Make sure you check with the |
| before it starts. I've even been to some sales in New | | | | tax collector a couple of days before the sale to find |
| Jersey where late commers are allowed to register | | | | out what the acceptable forms of payment are and |
| and bid at the tax sale. Some municipalities do not | | | | whether or not you will be allowed to go to the bank |
| require you to register ahead of time, only that you | | | | and get a check after the sale. |
| submit the proper paperwork if you are the | | | | Another thing that you'll have to have with you for |
| successful bidder on a property. | | | | the sale is the proper paper work. In some states |
| Some counties will require a deposit in order to | | | | you will have to fill this out when you register and in |
| register. The deposit amount could be anywhere | | | | others you will need to bring it to the sale. Most tax |
| from $100.00 to a few thousand dollars (as in the | | | | collectors will require a W-9 form and a bidder |
| case of many online tax sales). Large deposits are | | | | information sheet. The W-9 form is a standard IRS |
| usually returned to the investor if nothing is | | | | form and you can get it online at the IRS web site. |
| purchased at the sale. Smaller deposits are | | | | The bidder information sheet is usually filled out during |
| sometimes returned and sometimes not returned, | | | | registration and has your personal information, or |
| depending on the county. Nassue County, NY, for | | | | your business information if you're investing with a |
| instance has a tax lien sale that typically is 3 days | | | | business name. This form is not always stantardized |
| lonng. They have a registration fee of $100 for each | | | | and every county may have a different form. For |
| day that you intend to bid and the registration fee is | | | | most tax deed states there is another form that you |
| non-refundable. | | | | will have to fill out if you are the successful bidder on |
| You also need to make sure that you have the | | | | a tax sale property and that is an affidavit of no |
| proper funds for payment before you go to the sale. | | | | taxes due for the county and/or state that you are |
| For most tax sales, only certified funds are accepted. | | | | purchasing a tax deed from. You see most counties |
| You need to figure out ahead of time how much | | | | will not sell a tax deed to someone who has unpaid |
| money you think that you'll need. This can be a little | | | | taxes in their district. Sometimes a signed affidavit is |
| difficult because you don't know what properties are | | | | all that is necessary, but in some states, as in Texas, |
| going to be left in the sale and you don't know if you | | | | the county clerk has to sign off on a statement |
| will be the successful bidder on any of them. | | | | verifying the fact that you do not owe any taxes. |