Tax Liens - What to expect at an auction

[Michael Gertz]

Hello Friends!

We have all heard about tax liens and how it is a passive money maker, but what does an investor expect when going to one of these events?  Stories have been told of a handful of investors bidding down all the properties and winning, so the questions are as follows:

1) What are some tactics or general actions to take that would win a property?

2) What are the actual or realistic expectations when bidding? 16%? 5% 0%?

3) Can someone outline an event, attending the auction, bidding, and closing?

4) When does the purchase become ineffective in delivering your expectation? What I mean is, if the bidding has gone beyond the allowable interest <0% would the only reason to bid is the assumption that you will foreclose on the property?  If I bid to pay 500$ for a cert do I get a return?

All gurus are encouraged to share and I am sure our BP community would love to hear the stories.  Thanks so much!!