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The allure of 'easy' money can cause many bidders to overlook the pitfalls waiting for them in these sales. For instance, you shouldn't bid on any property that you haven't viewed in person. You can make a much more accurate and reasonable bid once you've actually seen the property. If you're bidding on the tax lien of a home, you need to know the condition of the home first. Is it intact, or severely damaged? Is the home still standing, or are are you just bidding on a piece of land? You can overbid and lose money this way.
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If you're willing to venture into this mysterious world, you can start capitalizing off of property tax lien sales.
Tax liens are a way to coerce property owners to pay their property taxes. If a property owner begins to fall behind on their property tax payments, a tax collector will eventually put the unpaid bill up for auction.