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Know About Different Types Of Bidding In Tax Lien Sales

Know About Different Types Of Bidding In Tax Lien Sales

A tax lien is a lien imposed on the delinquent property by the federal government. Once the lien is issued on the property, it is auctioned for sales to the interested investors. Investors will bid and the investor with the highest bid will win the auction. There are many types of bidding methods of tax lien sales in the U.S, but the premium bidding and percentage bid down bidding methods are the most commonly using bidding methods. We will be discussing below these bidding methods also some of the other methods. For more details, visit https://www.marketpressrelease.com/Tax-Lien-Wealth-Builders-Tax-Lien-investing-and-Its-Process-1590675599.html
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brett shaw

June 16, 2021
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  1. TAX LIEN WEALTH BUILDERS Know about different types of bidding

    in tax lien sales
  2. INTRODUCTION A tax lien is a lien imposed on the

    delinquent property by the federal government. Once the lien is issued on the property, it is auctioned for sales to the interested investors. Investors will bid and the investor with the highest bid will win the auction. The investor must know about the bidding method of the tax lien sales. There are many types of bidding methods of tax lien sales in the U.S, but the premium bidding and percentage bid down bidding methods are the most commonly using bidding methods.
  3. Types of Bidding 01 Premium Bidding Method 02 Percentage Bid-Down

    bidding method 03 Rotational bidding 04 05 Percentage Bid-Down then Premium Bidding First to bid Tax Amount We will be discussing below these bidding methods also some of the other methods followed while auctioning tax lien.
  4. In this bidding process, each property has an initial or

    minimum bidding amount, Investors and auctioneers can start their bidding from the minimum amount and the highest bidder will win the bid. The amount which is raised above the minimum bid amount is referred to as the premium. For example, the minimum bidding amount is $100 and it auctioned to the amount of $110, means the premium amount is the difference of two amount, i.e. $10. In tax lien sales, the premium is not recouped by the investors. Premium Bidding Method
  5. Percentage Bid-Down bidding method In this method, the bid amount

    is finalized initially before the bidding and it will never change during the bidding. What does happen is only the percentage rate of interest on the bidding amount is lowered. The investor with the lowest rate of interest will win the bidding.
  6. In this method, the registered investors are given bidder numbers

    according to the number they can participate in the auction. The minimum bid and the rate of interest remain unchanged during the bidding. This process starts with the first investor in the auction, if they are not interested in that property, it is forwarded to the next investors in the auction like this the auction goes on until the tax lien property is taken by someone. Rotational bidding
  7. Percentage Bid-Down then Premium Bidding First to bid Tax Amount

    This is a hybrid bidding process, where the bidding process starts with the Percentage Bid- Down method, if the bid rate goes to 0% then the bidding process is changed to the premium bidding process. Here the “first come first served” principle is used. The first person who pays the full amount of the bidding of tax lien sales is the winner.