#2 Mistake Tax Deed / Tax Lien Investors Make

2.  They Don’t Do Their Homework

This is the other side of that ugly coin that has ‘Paralyses of Analysis’ on the opposite end.  I don’t know which is worse; In the long run you loose money with both.  As much as I ‘preach’ to investors to make sure you know what you are bidding on, I still come across people who jump in head first and bid on a piece of property without doing their homework.  One of them attended my class and this person was so excited about doing a deal that this investor neglected to do the proper tax deed due diligence and is now banned from bidding in 2 counties for not paying for the properties won at the auction.  When you don’t pay for your property after winning the bid most counties will bad you from bidding on future sales.  This investor was lucky and was only temporarily banned but this resulted in forfeiting $400 worth of auction deposits.  This is the same person who tried to buy tax deeds without the home study course.  I just haven’t had the heart to tell this investor, the home study course would have cost less than the $400 lost in auction deposits not to mention saved the investor the humiliation and anxiety those deals caused.
Originally published in Blog on 6/26/2009