Pennsylvania has a secret that most real estate investors don't know about. 

It's called an Upset Tax Sale, and it happens every September across the state. 

This special kind of sale literally doesn't exist anywhere else in America, and it creates opportunities that seem almost too good to be true.

How Does A Tax Sale Work In Pennsylvania?

I once bought a $400,000 property in Pennsylvania for just $4,000. 

That's less than 10 cents on the dollar.

The best part is that you can do this, too, even if you've never invested in real estate before. 

Let me show you exactly how these sales work.

In Pennsylvania, when someone doesn't pay their property taxes for two years or longer, the property goes to a tax sale. 

But in Pennsylvania, something unique happens. 

Unlike other states that wipe away all old debts at these sales, Pennsylvania keeps all mortgages and liens attached to the property.

This is known as an Upset Tax Sale. 

Now, why would anyone want a property with old mortgages and liens? 

That sounds like a terrible deal. 

And that's exactly why these opportunities exist. 

Most investors run away when they hear about liens and mortgages staying attached. 

They don't understand that this “problem” is actually the key to getting incredible discounts.

Let me show you what I mean with a real example. 

Remember that $4,000 property I mentioned? It was a house on Chain Street in Norristown. 

The previous owner hadn't paid taxes in three years. 

When it went to the Upset Sale, other investors stayed away because they were scared of potential liens. 

But I knew exactly what I was buying because I did something they didn't – I got a title search before bidding.

This is where most people go wrong in these sales. 

Tax Sale

They either avoid bidding completely because they're scared of liens or worse, they bid without knowing what liens exist. 

I've seen people buy what they thought was a $500,000 house for $10,000, only to discover there were over a million dollars in liens attached. 

Don't let that be you.

The secret to success at these sales is actually pretty simple. 

Before you ever think about bidding, you need to know exactly what liens and mortgages are attached to the property. 

A basic title search will tell you everything you need to know. 

If the liens are too high, you simply don't bid. 

But when you find a property where the liens are low or manageable? That's when you can get those incredible 90% discounts.

Are you interested to know where to find these opportunities? 

Well, every September, in the third week of the month, every county in Pennsylvania (except Philadelphia) holds its Upset Sale. 

We're talking about thousands of properties available all at once. 

And here's what makes it even better—because all counties hold their sales at the same time, most investors can only focus on two or three counties at most. 

That means less competition for you.

Finding the properties is surprisingly easy. 

Just go online and search for your county's tax sale list. 

Let's say you're interested in Montgomery County. 

Simply Google “Montgomery County Pennsylvania tax sale” and you'll find the complete list. 

It's totally free, and you'll see every property scheduled for the next sale.

But here's something most people don't realize about these lists. 

When they first come out, about 45 days before the sale, they're huge. 

But by sale day, about 90% of those properties will be gone. 

Why? Because most owners eventually pay their taxes or work out a payment plan. 

That's actually good news for us because it means we can focus our research on properties that are really going to sell.

This is where your strategy becomes important. 

Don't waste time doing detailed research on every property when the list first comes out. 

Instead, wait until about a week before the sale. 

By then, the list will be much smaller, and you can focus your efforts on properties that will actually be available.

When you're ready to research properties, there's a specific process you need to follow. 

First, do a quick Google Street View check.

Look at the neighborhood and the property's condition. 

If you see blue tarps on the roof or obvious water damage, factor that into your calculations. 

Remember, if someone cannot afford to pay their taxes, they probably cannot afford basic maintenance either.

But don't let poor conditions scare you away. That's actually part of why we can get these properties so cheaply. 

While other investors are fighting over pretty houses in nice neighborhoods, we can get incredible deals on properties that just need some work.

The key is knowing your numbers.

 Let's break down my Chain Street property as an example. 

When I looked at it, I could see it needed work. 

But when you're buying at 10 cents on the dollar, you can afford to put money into repairs and still make a great profit. 

Just make sure you factor everything into your calculations – repair costs, potential legal fees if the property is occupied, and of course, any liens that will stay attached.

If you want to get started in this business, here's your action plan. 

First, mark your calendar for September's Upset Sale. 

Then, go watch a sale before you ever think about bidding. 

See how fast they move. Learn the process. 

While you wait for September, start researching liens and mortgages in your target area. 

The more you understand about your market, the better prepared you'll be when opportunities arise.

Remember, this isn't about getting rich overnight. 

It's about understanding a system that most investors don't even know exists. 

But if you're willing to learn the process and do your homework, you can find deals that other investors miss completely.

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