Tax Lien Sale in Weld County Colorado

[Shevaughn Rawlins]

I’m interested in purchasing my first tax lien property in Weld County Colorado. I reside in Texas. Weld County have a their tax sale 1x per year in October so I’ve been doing my research prior to the sale so I can be prepared. During my research I read about potential pitfalls “Strips, SIDS, Minerals and Contamination”. What do I need to do during my due diligence to ensure I don’t run into this problem. Any other tips and suggestions is appreciated. Thanks in advance.

[Vik V.]

The tax lien business is really a neat one, if you have the patience for it.  There's a thread with some good info here:  https://www.biggerpockets.com/...

As for your question about some of the pitfalls, it comes down to research.  You can do a GIS map search in most CO counties, then further searches on the county recorder's site on a particular parcel.  There are junk parcels for sure, for one reason or another, that you just wouldn't want to own.  And there are some potentially valuable ones, if you're willing to do the tedious work of going through the delinquent parcels list, and finding them.  Those tend to get bid up at auction, especially in the more populated counties.  Keep in mind though, if you're looking to eventually acquire the property, that most will get redeemed, and that's the end of the story.  You'll hopefully make enough interest on those to cover the premium you paid.

Also, keep in mind, it's about 4 years until you can actually get a Treasurer's Deed in your hand for a parcel.  It'll have a bit of a cloud on its title, for 9 more years, for merchantability, but you can erase this with a quiet title action.  (Or just sell it with a quitclaim deed) All of this takes time, and you just have to budget for it all.  But in the counties that still do live auctions, it's the same people, year after year, so, something keeps us coming back :-)

Good luck!