In this chapter 3 you will find different types of auctions to buy tax lien, you can do it live or online from your home.
Maybe someone will have already participated in an auction, honestly it’s a lot of fun, in the past I’ve seen several auctions (not just tax lien), for example I accompanied a Kansas farm’s owner.
I liked it because it was the first time, when the auction started,believe me that I did not understand anything from the speed’s unfolding.You know, just imagine that you were in the midst people’s bubble, the thing that struck me the most, was the “language” used by the participants and organizers.
Some participants did not scream, rather, they made a single gesture with the body, for others the eyes were sufficient. Don’t be afraid that was an animal auction (cattle), for tax lien it’s a little easier.
I think that some of you who are reading this article, at least once in your life participated in an online auction, here are some sites that come to mind: govdeals.com, Ebay, ecrater .com and at first it seemed easy but remember that there is always a strategy to be the best.
These are 3 of the most important types of auctions to buy tax lien:
- Bid Rotation
- Bid down on the interest rate
- Premium Bid
The names listed above are the main methods to buy tax lien live, they work in a simple way, with Premium Bid you start with “base” price until you get to the best offer (last price beaten).
For those who do not live in America or are an American citizen who lives very far from the County that issues tax lien, they can do so online but will have to follow important steps: registration on the county website where there will be all the information and details (payment methods), the investor will be given a code (Bidding Number) that serves as an identification document.
As mentioned in the previous chapters, on the County website you will find important information such as location, auction company, platform to be used (some also provide a demo in addition to data to train) to manage access to the different current and future auctions.
In the table I highlight some differences between live and online auction:
|Positioning compared to competitors||Anonymity (don’t see competitors in the face)|
|Starting strategy||Time (sometimes online goes really fast)|
|People around you||Different approach|
If you’re as a thinker of an investor and want to earn money, you need to know that buying a great tax lien is complicated (so much competition), but it’s not as impossible as so many think. I’ll tell you more information later.
You have to have an action plan, you don’t have to be distracted and psychologically it’s essential to manage emotions. The first rule (money management) is not to exceed the figure you set before entering the market.