Zero Risk Real Estate: Creating Wealth Through Tax Liens and Tax Deeds

Online Auctions—Bidding in Your Pajamas!

Since the invention of eBay, people have been enamored with the ease, flexibility, and fun of participating in auctions online. Participating in an online tax sale auction allows you to bid without having to attend in person, and in fact allows you to attend from anywhere in the world. I have several students and clients who are located in many different countries, and they love these types of auctions. And yes, since no one was watching, I have even attended auctions in my pajamas!

To participate, you will of course need a computer and access to the Internet. For international bidders, you will also have to have the ability to pay for your winning bids in US dollars, and most likely may need to provide a US address as a point of contact. This can be established very quickly by contracting with a designated or resident agent. It is not always necessary, but it’s worthwhile to establish if you plan on doing a lot of investing.

You will need to preregister at the county or auction company website and follow the step-by-step instructions. Many online auctions require the preregistration x-number of days in advance, and they may require a deposit placed in advance as well. Check the rules carefully, as deposit requirements can vary widely. For extremely high-value parcels, they may even require what is known as a performance bond to accompany your right to bid.

Some online auctions base the deposit on anticipated bids, and they require the bidder ...