If you’re a savvy investor, you’ve noticed that now is the best time to invest in real estate. Home values have dropped tremendously and there are more and more short sales and foreclosures on the market every week.

But for even better deals, many real estate investors turn to real estate or tax lien auctions. And why wouldn’t they? The potential to buy property at half it’s assessed value is appealing to any smart investor. It’s like a dream come true!

Or is it?

Just when you think you got the deal of the century, but what if that “gold mine” became a money pit of endless liens? Were there second or third liens in place? What about mechanic’s liens? Try to take advantage of what little time is offered to preview the property and do your due diligence — research! Find out as much as you can so that you know what you’re bidding on.

Finding a great deal at an auction IS possible, but just remember that there are always risks involved in any investment transaction. Minimize that risk by preparing yourself for the worst, and if all is well, then that makes the deal even sweeter!

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