Summary:

Investors can easily overlook the problem of transporting money when attending a tax auction out of state or even the country. Here are a few quick reminders.

Article:

In the business of tax liens, tax certificates you’ll find that you end up handling large amounts of money. You’ll need the cash to pay for properties picked up at auction, daily expenses and other business related expenses. Sometimes you’ll even end up carrying large amounts of cash with you as you travel to new areas to participate in a tax auction. This can be a hassle and would cause anyone to worry.

One of the easiest ways to save yourself this hassle is to make sure you have a bank account with a bank that exists in the area you are heading to. You can easily research online to find out which banks exist in the area you are heading to. However it’s not always possible to set up a new account for each place.

Having your home bank issue you one or more Cashiers’ Checks can be an easy way to transport money. Usually these are secured checks that can be cashed by you at any bank or business, anywhere, that will accept them. It’s good to know that typically Cashier’s Checks under $5000 won’t have a hold placed on them when you cash them. There have been scams with fake Cashier’s Checks so you may find that you have a little trouble cashing them when you need them. In the business of money there are a lot of variables.

Some investors may even cross the border between Canada and America in their search for tax auctions to attend. Bringing money across the border can be a tricky process. You’ll want to declare any large amounts that you have with you, whether in cash or check or even in the form of gold bars.

Under our new legislation you’ll be glad to know that there is no limit on the amount of money you can bring into and out of Canada, but you must absolutely report it to the Border Services Office when the amount is greater than $10,000. Reporting the amount is done in person at the Canada Border Services Agency Office and you will need to fill out Form E677, Cross-Border Currency or Monetary Instruments Report-Individual. You can print out this form from the Canada Border Services Agency website. Fill out this form, sign it and hand it to the border services agent at the nearest border office where you are crossing. If you don’t declare they could legally seize the money and give you a fine.

This can be equally important whether you are coming or going. Have a bank account set up, so you can put in and take out any money you make or need. Always treat your border crossings with care. As long as you declare the amount you bring with you and cooperate with procedures the border crossings should go smoothly.

Attending a Tax Auction and Winning that Property

Summary:

Don’t get caught up in a bidding frenzy at tax auction. The smart way to pick up property is to stay calm and have a good knowledge of the rules of auctioning.

Article:

When attending a tax auction, you have to have a system, you have to be organized. Once the auction starts they don’t wait for you to get ready. The property is sold to the highest bidder and whoever has their paddle up when bidding. Be prepared. Before the auction research properties on the property list, make notes and take photos. Also it’s a good idea to decide before hand your maximum bid on each property.

Investors should be aware of other people at a tax auction. As soon as they get a hint that you know what you are doing they will try to ask a lot of questions and can distract you at the auction. So it’s possible to miss out on a lot of good bidding. Some people get really confused. They will end up bidding on everything that comes up. Some will even end up bidding against themselves. It really pays to be calm at the auction and not get caught up in the frenzy. You’ll easily be able to see who did their research on a property and who didn’t. Don’t be afraid to give yourself a pat on the back when you see someone in a bidding frenzy over property you researched and realized just wasn’t worth the money.

Many people attending auctions don’t know the rules of auctioning. It is often a requirement that you have the money on hand to pay for the property within an hour of the auctions end. Lots of winning bidders can’t fulfill that requirement and so the property goes back up for auction. Don’t just leave at the end of the auction. Hang around for an hour for the chance to bid on properties that come back up again at the after auction sale.

Once you have your property what do you do with it? Some investors feel like they need to flip their property almost as soon as they buy it. This is great. If you can find a buyer or a realtor that will pick up the property from you for a few thousand more in a couple days then go for it. However there is nothing wrong with holding on to a property for a little while. In a good market will just keep accruing value and you can take your time in putting it up for sale with a good realtor.

The thing to remember with picking up property at tax auction is to get it for less than it’s assessed worth. The assessed worth and minimum bid on each property will be easy to find on the property list. Pick up a property below it’s assessed worth and sell it at its assessed worth or a little bit higher than you won it for and you’ve made a profit. As long as you follow this rule when purchasing a property at auction you have a good chance of selling the property in the long run with a high percentage of profit.