First Tax Lien sale. Should I be afraid?

[Account Closed]

I'm going to my first tax sale next week. I could use some pointers from any experienced tax lien investors. What's the one or two things you wish you knew at your first tax lien sale? Thanks in advance

[Ned Carey]

I wish I knew how much people really bid. Despite the Guru pitch of "pennies on the dollar" many bidders bid so high you can't foreclose or you would loose money. The numbers big bidders bid do not make sense to you and me. I believe in many cases they do not make sense for the big bidders either, they just don't know it. 

Know what you are bidding on. Often crap is in these auctions. People didn't pay the taxes for good reason. Also you need to know the value of the properties. Do not trust the the tax assessed value. It may not be anywhere near the real value.

Understand the hidden costs. If your lien does not redeem what are the costs to take title to the property? In Baltimore city I can buy tons of liens for $1-3,000. It is easy to say, "I can buy this lien for $2000. It has to be worth at least $8-10,000. Even junk properties in the ghetto sell for that much. But the cost to foreclose and record the deed can be a total of $10-12,000.  You won't make any money that way