Can I Invest in Tax Sales in Other States?

Can a non resident invest in another state’s tax sales? It’s a common concern among beginning investors! Watch our answer in today’s video!

Transcript:
Hi there! It’s Casey Denman here with TaxSaleAcademy.com, answering your weekly question. This week’s question comes to us from Rebecca. Rebecca says, “Can I invest in tax sales in other states? And if so, what are some of the disadvantages besides the obvious, which is having to travel?”

Well, Rebecca, first off, thank you very much for your question. Yes, you can absolutely invest in many tax sale states. There is no state statute that requires you to be a resident of that state in order to purchase tax sale properties.

Now, with that said, of course there are some disadvantages. You alluded to one of them, which is traveling. A lot of people think out of state stuff. They have to travel a lot. There are going to be planes and driving and all those sort of things. But as technology has progressed over the years, it’s becoming more and more easier to invest in tax sales in other states. There’s all sorts of online bidding systems and programs and different methods that these auction houses uses where you can literally sit in your office in one state and bid and buy properties in states hundreds of miles away so it makes it very, very easy.

Now, obviously, they don’t offer any absentee bidding whatsoever. You might have to travel, and that could potentially be a disadvantage, of course. Another disadvantage is the lack of familiarity with a particular area. If I invest in my home state, for instance, or even my home county, I know exactly where I should and where I shouldn’t consider investing my money. Whereas if I’m investing somewhere 400 or 500 miles away, I’m probably not going to be very familiar with it. So there’s a learning curve there. I have to learn the certain areas where you want to invest and where you don’t want to invest.

Another disadvantage could be the learning curve as far as the tax sale procedures. Each state has different state statutes that regulate how the tax foreclosure system works. And from one state to the next, they all vary. With that said, you can potentially – in one state, everything goes fine. Then you consider investing in another state. Something might catch you for a loop and it could cost you a lot of money. So certainly, take the time to research the state laws and to learn how to properly and successfully invest in other states before you consider doing it.

Rebecca, I hope this has answered your question. If you have a follow-up question, or if anybody else has any questions about tax sale investing, head on over to my website at TaxSaleAcademy.com, which you can do by clicking the blue link at the bottom of this video. Once you get there, submit your question, and it’s very possible I’ll give you a video response just like this one.

Have a wonderful day, folks! Bye-bye.