I used to think tax sales were too complicated, too risky – something best left to the seasoned pros.
That was until I discovered how to navigate them the right way.
What I'm about to share isn't just another guide about bidding at tax auctions.
In fact, I recently sat down with someone who's revolutionized how these deals are done.
How To Buy Property From Tax Sale?
He's developed a proprietary system where you can buy properties for just the past-due taxes—there is no auction, no competition, and no bidding wars.
We're talking about properties he's picking up for as little as $2,500 that are bringing in $800 a month in rent.
Think about that – the property paid for itself in just three months.
But before I reveal this game-changing strategy, you need to understand how tax sales really work.
Not just the basic stuff you can find anywhere, but the insider secrets that can help you avoid the costly mistakes most new investors make.
Because here's the truth: while there are incredible deals to be found at tax sales, this isn't a game for the uninformed or uninitiated.
Those people get fleeced. The informed ones? They get rich.
Let me show you exactly how to be in that second group.
Everything starts with getting the right list. It's actually simpler than you might think.
Just go to Google and search for your county, state, and “tax sale list.”
For example, if you search “DeKalb County, Georgia tax sale list,” you'll find exactly what you need.
These lists show you the property address, owner name, and, most importantly, the taxes due— which is where the bidding starts.
What makes this interesting is that the opening bid typically only covers three to four years' worth of back taxes.
We're talking about potentially buying properties for pennies on the dollar.
But before you get too excited, let me walk you through the smart way to evaluate these opportunities.
Your first step is what I call “electronic due diligence.”
Before you waste time driving around looking at properties, pull up Google Street View.
Look at the property. Rotate the view to check out the entire street.
Your only goal at this point is to make a simple decision: is this property worth a closer look, or is it an absolute “no”?
Now, here's a crucial piece of insider information most people miss: don't rush out to view properties the moment you get the list.
Why? Because that list is going to change dramatically as you get closer to the auction date.
People will pay their taxes at the last minute, enter payment agreements, or file bankruptcy.
A big list becomes a much smaller one.
The sweet spot for property visits is three to four days before the auction.
That's when you'll have a much clearer picture of which properties are actually going to auction.
At this point, you drive by the properties you're interested in.
Look for red flags, such as holes in the roof, broken windows, and signs of fire damage.
Is the property occupied?
Remember, if you buy it with occupants, they become your responsibility to evict.
Don't be shy about knocking on doors. Talk to occupants if they're there. Chat with neighbors.
The more information you gather, the better positioned you'll be to make a smart bid.
But here's where many new investors get tripped up – the auction process itself.
Many counties now require pre-registration, often weeks in advance.
You can't just show up on auction day ready to bid.
These are cash-only sales – no mortgage financing available.
You need to know exactly how and when payment is required, whether it's an ACH transfer or a cashier's check.
Some auctions happen online these days, which is convenient but tends to attract more competition.
The in-person courthouse auctions usually have less competition, though they require more effort to attend.
Here's one of the most important pieces of advice I can give you: set your maximum bid and stick to it.
I've watched countless investors get caught up in the excitement, thinking, “It's just another $500.”
Then another. And another. Suddenly, they've won the property but lost any chance of making a profit.
You also need to understand the risks.
These properties don't come with automatic clear titles.
You'll often need to go through a quiet title action, which typically costs between $3,500 and $5,500 and takes a couple of months.
Factor that into your numbers.
But remember what I mentioned earlier about my friend's proprietary system?
He's found a way to bypass the whole auction process.
No competition, no bidding wars, no rushing around to evaluate properties in a few days.
You simply pay the past-due taxes and get the property.
He's been crushing it with this method, and in our recent26-minute interview, he broke down exactly how it works.
Whether you choose to pursue traditional tax sales or explore this innovative approach, the key is education.
Watch auctions before you bid. Learn the process inside and out.
Remember, this business can make you rich, but only if you're willing to do your homework.
Success in tax sale investing isn't about luck – it's about being the most informed person in the room.
Now you know the basics. The question is: what are you going to do with this information?
