Investing in real estate takes many forms including buying tax lien certificates. Tax lien certificates offer a unique opportunity to earn potentially high yields from purchasing delinquent property taxes. 

The best part? You can now buy tax lien certificates online, eliminating the need to attend public auctions at local courthouses.  These online auctions are convenient and you can invest in multiple tax lien certificates from different Counties, all from the comfort of your home. 

So, you might wonder – where can I buy tax lien certificates online? Here we’ll talk about where to buy tax certificates online, the benefits and drawbacks of purchasing online, and how to confidently build your tax certificate portfolio. 

What are Tax Lien Certificates?

Tax lien certificates are legal claims made by the government on a property because of unpaid taxes. As a savvy investor, purchasing the tax lien certificate makes you a creditor to the property owner. If the owner redeems the certificate, they pay you the money you paid plus a guaranteed interest. 

When they don’t redeem, you might be entitled to foreclose the property or receive a deed in lieu of foreclosure depending on state law. 

Tax certificate investing is an amazing way to earn up to 30% returns which are much higher yields than many other traditional investments. The interest rates are also fixed, providing a predictable source of income. Plus, you can diversify, adding tax lien certificates for multiple properties across counties and jurisdictions. Intrigued by this exciting investment strategy and want to learn how to get started? Check out our comprehensive guide to investing in tax lien certificates.

Why Buy Tax Lien Certificates Online?

Here are some reasons to consider buying tax lien certificates online:

• Convenience: Buying tax lien certificates online means you may not have to travel to courthouses or attend crowded auctions. Counties and jurisdictions often use online platforms where you can view listings on properties and even make payments from the comfort of your couch. 
• Wider market: Online platforms let you scan through a wider selection of listings from multiple counties and states. This equals a broader range of investment opportunities, all accessible with a few clicks. Think of it as online shopping, but for potential real estate ownership (with a few extra steps, of course).
• Transparency: These online platforms offer detailed information about each certificate. You’ll be able to see details such as the property’s condition, back taxes owed, and potential returns, 

Online vs. in-person purchases: how to make your choice

Before you decide to buy online or in person, you should understand what to expect with each method. Making purchases in person means you can ask questions to officials on the ground, and even network with other investors. 

But then it requires traveling to the auction location, at a specific date and time. Often, these auctions are fast-moving and might feel overwhelming, if you are unfamiliar with the process or need to travel between locations.

In contrast, making the bids online, helps you prioritize convenience, a wider selection, and potentially juicier interest rates. You will also be more comfortable with researching properties and bidding. 

That said, some states and counties still require someone to be present at the courthouse on the auction day.  But it’s easier if you already have all the information. All you need is to get someone to represent you on auction day. Regardless of your choice,  ensure you thoroughly research the auction process and relevant state laws before participating.

Steps to Buy Tax Lien Certificates Online

Although Counties and Jurisdictions have different laws and regulations, buying tax lien certificates online follow these steps:

Learn everything about tax investing. 

Knowledge empowers you to make smart choices when investing in tax lien certificates. Laws governing tax lien investing also vary from one county to the next. So, you need to build your knowledge about tax lien investing, and especially the laws governing the counties you might be interested in. Choose True Investor’s masterclass to learn everything you need to know about tax lien investing, picking lucrative properties, and strategies to navigate the auction process with ease.

Pick the right online platform.

Now it’s time to find answers to your question – where can I buy a tax lien certificate online? There are tons of platforms online that sell liens in your area. When checking them out, consider fees for using them, ease of use, and the type of customer support to expect. 

Register and set up an account. 

Once you’ve made your pick of a platform, it’s time to sign up. Note that signing up on the bidding platform generally doesn’t mean you’ve registered for the auctions. Signing up merely allows you to review their listings. When you find the listings you want, you’ll have to register again for them. 

Participate in online auctions or direct purchases

Listings online would generally allow you to see the descriptions of the property when the auction is being held, rules, and sometimes other investors involved. If you’re allowed to bid online, you may also see where you stand against other investors. 

Usually, the municipality sets a maximum interest rate, and then buffers offer to accept a lower interest rate on the delinquent taxes they are paying. However, some Counties use sealed bid auctions where they display a maximum rate, and you simply have to make your bid without seeing what your competitor is bidding. Other Counties use a slightly different process where they create a fixed price based on the delinquent taxes and associated fees. Then bidders compete by offering additional premium amounts on top of the base price. In this case, the investor who offers the highest premium wins. 

Make payments and secure the certificate.

Once you win, you’ll be required to make a payment. Some Counties allow online payment. Others require cash payments. After making payment, you may receive a digital copy of the tax lien certificate.  

Where to Buy Tax Lien Certificates Online 

There are many different websites, marketplaces, and online tools for buying tax lien certificates. They include:

County tax offices

Many counties list tax lien sales online via county tax collector websites. There you’ll find details on registering for the auction, how to make payment, and bids from your competitors. Some counties also have social media pages that you can follow to learn about upcoming auctions. 

And if you cannot find details about upcoming auctions on their website, you can find their contact details there. Using this, you can call or email about upcoming auctions. Here are some examples of counties listing tax lien:

• San Diego tax lien sales 
• Nevada County tax sales 
• Somerset County tax collections 

Research Public Notice websites

Many state websites offer hubs where you can find current and past tax lien sales. Some also release brochures on upcoming tax lien sales. Since public notice websites are general websites listing diverse news and announcements, you can use search terms like “public notices” “tax sales,” and “delinquency sales.” Usually, public notice websites list both past and upcoming sales. So consider creating accounts with the websites, and subscribing to their newsletters to get notified about any future sales. 

Google 

Google is always a great place to find online tax lien auctions. You can quickly run searches for “buy online property tax”. If you don’t also know which counties may have tax lien sales online, you can search on Google using phrases like “buy tax liens online”, “[county name] tax certificate sale online” or “[county name ] tax collector sale online. Also look up websites with “gov” in the address. This typically indicates government websites. 

Statewide DOR search 

Search DoR (Department of Revenue) websites for each state to find where to buy lien certificates online. Often these websites provide guidelines on both online and in-person tax lien sales processes. If you don’t know how to find a state’s Department of Revenue website, simply type [state] and “Department of Revenue’ to find the sites. For example, Rutherford’s Revenue Department lists tax lien sales on its website. 

Online newspapers

Local newspapers online also carry advertisements about property tax sales. This method is great when you want to seek out tax liens within your locality. But it can get overwhelming if you want to track several local newspapers across neighborhoods looking for where to buy tax lien certificates online. 

Top Options for Buying Tax Lien Certificates Online

Gov.Ease 

GovEase is a great place where you can find live and upcoming tax sale property auctions. On this platform, you’ll find information such as when you need to register for the auctions, the pre-bidding date and time, satellite views of auctioned properties, and a few details about the auction. First, you’ll need to create a free account with Gov.Ease. Then when you find auctions you like you need to register for that auction specifically. Often Gov.Ease handles payments for the counties which further simplifies your tax sales process. 

Bid4Assets 

Bid4Assets is also a great real estate auction site that has been around since 1999. Here you’ll find tax lien sales, sheriff sales, and federal forfeiture auctions from counties across the US. Signing up on the platform gives you access to listed properties. You can also sign up for weekly email alerts about new auctions. You’ll find descriptions and satellite views of listed properties. Sometimes, Bid4Assets handles payment and deposits on behalf of the Counties. 

Unique.Exchange

Unique Exchange is a great platform for finding attractive tax lien certificates with an average yield of 15%. Here you can access tax lien sales whether you’re in the US or an international real estate investor. First, you need to sign up to view their Tax lien marketplace. They also have an onboarding process that determines if you’re a qualified investor before you can access their system. Here you’ll find details like bid types, and property market values. They also have several automation features to quickly deduct which tax lien certificates are more profitable. But note that these automation insights can be inaccurate. It’s much better to do your own research. 

Parcel Fair 

Parcel Fair is also a great website to find information on auction calendars and tax-delinquent properties across all 21 states in the U. S. You’ll find year-round applications, physical photos and map imagery of auctioned properties, quotes for auctions,  purchasing instructions, auction dates, and more. You can even access additional document management systems where you can attach your own notes, documents, and photos to track the properties you’re interested in. However, Parcel Fair requires a subscription of $49 monthly or $475 yearly. 

Tips for a Successful Purchase

Now you know where to buy tax lien certificates online, here are some practical tips to avoid investing mistakes and make the best of your online real estate investments. 

Always do your homework.

No one likes surprises and certainly not when you’re making investments. So you need to learn the ropes of tax lien investing and the rules in your chosen jurisdiction. These rules also change quickly, so you need to keep up with them, which is why we recommend actively seeking out information on how to make the best of your investments.

Carry out thorough research. 

Buying online does not mean relying only on the property descriptions listed by the auction. You need more such as satellite images or getting someone on the ground to look at the property. You should always understand what you’re buying, the neighborhood, estimated versus actual property value, and more. A good rule of thumb is avoiding properties with environmental damage, or properties in bad neighborhoods. 

Be clear about your investment strategy. 

Investing in all types of delinquent properties can feel overwhelming. It is much better to decide whether to focus on undeveloped land, residential or commercial properties. Dedicating yourself to a specific property type allows for a deeper understanding of the rules and regulations affecting such tax lien sales. 

Know your responsibilities 

After winning at the auction, there are tasks you still need to do. For example, in Illinois, you need to notify the property owner that you possess the lien within four months of purchasing it and that you can foreclose if they don’t repay within the government’s specified redemption period. You’ll also need to send another letter before the end of the redemption period. Also never forget that tax liens have an expiration date, which across most states and counties is typically six months after the redemption period.

Conclusion

Buying tax lien certificates online is a convenient way to invest with more room to explore options from a variety of Counties and jurisdictions. You can always begin researching on Google to find county tax collector websites or dive into your state’s Department of Revenue (DoR) website for information on both in-person and online tax lien sales. Plus there are tax lien and auction marketplaces you can explore to find juicy investments.

No doubt tax lien certificates can be a powerful real estate investment opportunity. But you need to understand its intricacies and potential pitfalls. Sign up for our FREE mini-class to learn more about how to navigate the world of tax lien certificates with confidence. Don’t miss out on the potential for lucrative returns – secure your spot today.

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