- 1). Check with your local county government officials to determine when you can buy tax deed certificates. At least once a year county tax officials publish a list of the tax certificates which are available for purchase.
- 2). Purchase the tax certificates of your choice. By purchasing a tax certificate you are paying the county for the taxes which were not paid by the owner of the property. The owner of the property will have the option of buying the certificate back from you. Upon repurchasing the certificate, the owner will also need to pay you an amount of interest which is where you will make a profit from your investment. The amount of interest provided by the certificate should be a key factor which should influence your decision making process. You should choose to invest in tax deed certificates in locations where the interest rate is significant. (See References 5)
- 3). Sell your certificate back to the owner and collect your profit. This is the easiest way to turn a quick profit. In the event that the owner does not purchase the certificate, your certificate will in effect provide a lien against the property. Should the property be purchased by another entity then that entity will need to purchase your certificate in order to obtain a clear title to the property.
- 4). Exercise your rights to the property. In some states you may have a right to ownership of the property if the owner does not redeem outstanding tax certificates in a timely fashion. (See References 1) For example, in Oklahoma, the owner of a tax certificate can purchase the property from the county for the amount of one dollar if certain conditions are not met by the owner. This could lead to certain liabilities if there are other liens against the property which would cost more to remove than the value of the property. (See References 2)
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