Do you want to know something crazy?
I once bought a property for just $275 and another for $4,000.
I've also watched people buy properties for half a million dollars and flip them for a million in the same year.
These aren't fairy tales—they're real deals from tax sale auctions.
How Does A Delinquent Tax Sale Work?
But here's the thing: while there are incredible bargains at tax sales, you can't just walk in and start throwing money around.
I've seen too many people lose their shirts because they didn't understand how these auctions really work.
I've been doing this for years, and I've learned some valuable lessons – some of them the hard way.
Today, I'm going to show you exactly how delinquent tax sales work and how you can participate safely and profitably.
First, let's talk about how to find these opportunities.
It's surprisingly simple: just use Google. Type in the county name, the state, and “tax sale list.”
For example, “DeKalb County, Georgia tax sale list.”
This will take you straight to the tax commissioner's site, where you can access properties that could change your financial future.
But where most people make a mistake is that they see these huge lists of properties and think they've struck gold.
The reality is that most of those properties will never make it to auction.
Why? Because at the last minute, owners rush to save their properties.
They make payment arrangements, find the money, or file bankruptcy.
Understanding this is crucial because it completely changes how you should approach these sales.
Here's the strategy smart investors use: Instead of falling in love with one property, you need to be prepared to bid on multiple properties.
Think of it like fishing – you don't throw one line in the water. You cast a wide net.
Let me share something important I've learned the hard way.
When I first started, I made the mistake of doing intensive research on every property right away.
Big mistake.
Here's what you should do instead:
Start with Google Maps Street View.
Take a quick look at the property and the neighborhood.
Is this somewhere you'd want to own? Is it a nice residential area or a run-down industrial zone?
Create a shortlist of potential properties this way.
Now, here's the crucial part that nobody talks about: do nothing.
Yes, you read that right.
Wait until 3-4 days before the sale.
Because that's when you'll know which properties are actually going to auction.
Most people who are going to pay their taxes will have done so by then, and the list will be much smaller.
This saves you tons of time and effort.
Once you have your real shortlist, it's time for boots on the ground.
Drive by these properties. Look for red flags like fire damage, bowed rooflines, or twisted windows – signs of serious problems.
Don't be shy about gathering information.
Talk to neighbors – they usually love to share what they know about the property.
If someone's home, knock on the door.
You might discover it's occupied by tenants or find out it's vacant. Just remember: don't trespass.
You can look but don't enter the property.
But let me warn you about something that could save you thousands: never, ever buy commercial properties at tax sales.
That charming old gas station might look like a steal, but environmental problems could cost you a fortune.
Stick to residential properties.
Now, before you show up at the auction, there's critical preparation needed.
You need to check the auction requirements in advance.
Some counties want you to register beforehand.
Others require deposits. Some want payment on the same day.
Don't be the person who finds a great deal but can't actually bid because you didn't do your homework.
Here's a golden rule that's saved me thousands: set your maximum bid before the auction and stick to it.
Auctions are exciting – that's how people end up overpaying.
If you're fixing and flipping, aim to buy at 65-70% of retail minus repair costs.
For rentals, focus on neighborhoods where you can get good tenants and solid rents.
Now, while everything I've told you works (I've used it myself), there's actually an even better way to buy tax-sale properties.
A friend of mine discovered a method to buy properties with zero competition, year-round, for just the taxes due.
I'm talking about deals like a $2,500 house that rents for $800 per month.
Yes, you read that right.
Think about that – three months of rent pays for the entire property.
And the best part is there is no competition, no bidding wars, just straight deals at tax prices.
The opportunities in tax sales are real.
They're not get-rich-quick schemes or pie-in-the-sky dreams.
They're solid deals that happen every day across America. The only question is: are you ready to learn how to find them?
