Month: December 2025

You can only scale so far with your own money and your own time allow. At some point, the best investors stop trying to do it all alone and start doing it with the right people. Here’s how partnerships can turn a modest lien portfolio into a seven-figure machine.

The Three Partnership Models That Actually Work

1. The Money Partner
   You bring the expertise, they bring the cash.
   Split: They fund 100% of the lien, you manage everything, 50/50 on interest/redemption profits.
2. The Boots-on-Ground Partner
   You’re remote, they’re local.
   They drive properties, handle foreclosure paperwork, and manage deeds.
   Split: 60/40 or 70/30 favoring the local partner (they do the dirty work).
   Bonus: They can bring off-market lien deals you’d never see online.
3. The Mastermind / Deal-Share Group
   4–8 serious investors meet monthly. Everyone brings their best county and best liens to the table.
   No money crosses hands; you just piggyback on each other’s research.
   Groups can save hours of research and open new counties to your portfolio

How to Find (and Keep) Great Partners

• Start small: one $5k–$10k lien together as a test.
• Use a simple one-page partnership agreement
• Over-communicate: weekly update emails, shared Google Drive, monthly 15-minute calls.
• Pay fast and pay fairly; your reputation is everything.

Stop thinking “I have to do this alone.” Start thinking “Who do I need on my team?”

Team up to scale up; collaboration turns small liens into big wins.

 

 

 

 

 

This blog is for informational purposes only and should not be relied upon as financial or investment advice. Real estate investing carries risks, and individual results will vary. Always consult with your team of professionals before making investment decisions. The authors and distributors of this material are not liable for any losses or damages that may occur as a result of relying on this information.

When the news screams “recession,” most real estate investors panic and hide under their desks. Meanwhile, the smartest tax lien investors are quietly licking their chops. Here’s why downturns are secretly the best time to build serious wealth with liens (and exactly how to take advantage).

Why Downturns Are a Tax Lien Investor’s Dream

1. Delinquency Rates Explode
   Lose a job → can’t pay property taxes → county creates more liens. In the last three mild recessions, lien volume rose in many states. More inventory = more choices.
2. Competition Vanishes Overnight
   Casual bidders who were “just trying it out” disappear when the market feels scary. When bidders dwindle there’s opportunity for lower bid costs, higher interest rates, thus fatter yields.
3. Interest Rates Stay Locked
   Unlike bonds or savings accounts that slash rates in a downturn, your statutory lien rate (12 %, 16 %, 18 %, whatever your state guarantees) doesn’t change. You’re earning solid returns in a 2025 economy.
4. Redemption Eventually Comes Roaring Back
   Yes, some owners take longer to pay when money is tight, but when the recovery hits, they refinance or sell at higher prices and you collect every penny plus penalty interest.

A Simple Downturn Playbook

• Keep some capital in cash during the good times (it feels boring until it doesn’t).
• When lien lists double in size and bidder count drops, deploy aggressively.
• Focus on “recovery-proof” counties: strong employment diversity, growing population, history of solid redemptions even in bad years.
• Buy bigger certificates (less work, same fixed costs).

Imagine deploying during that sweet spot. As an example, let’s assume that sweet spot’s in January, purchasing $100k worth of liens at an average 10% of face value because nobody else was bidding. By mid-2027, 90% have redeemed and pocketed over $14k in profit during the worst part of the cycle. All with minimal work compared to other investments and the potential for gaining the remaining 10% of properties.

Down markets don’t hurt tax lien investors; they reward the prepared.
Down markets create golden liens. Build wealth when others freeze.

 

 

 

 

This blog is for informational purposes only and should not be relied upon as financial or investment advice. Real estate investing carries risks, and individual results will vary. Always consult with your team of professionals before making investment decisions. The authors and distributors of this material are not liable for any losses or damages that may occur as a result of relying on this information.

Here’s the part most investors completely ignore until it’s too late: every single lien you buy already needs an exit strategy the moment you click “bid.” Without one, you’re just collecting expensive paper.

Let’s make this simple. There are really only three endgames in tax lien investing. Pick yours now (you can have a primary and a backup, but never “all of the above”).

Exit #1 – The Passive Income Machine

Goal: Live off the interest checks.
Best for: Anyone who wants true “mailbox money.”
How: Target counties with 80–95 % redemption rates and statutory rates 12–18 %.
Exit move: Do absolutely nothing except wait for the county treasurer to mail you principal + interest. Reinvest 100 % of redemptions into the next auction.
Illustrated Example: My friend Karen started with $40k in 2016. She’s never foreclosed once. Today her portfolio has redeemed ~$48k per year in interest while she travels full-time.

Exit #2 – The Discounted Deed Collector

Goal: Own real estate for pennies on the dollar.
Best for: People who eventually want rentals or big resale profits.
How: Bid in counties with lower redemption rates.

Exit move: When the redemption clock hits zero, foreclose, clean title, then rent, seller-finance, or flip.
Illustrated Example: Mark in Illinois turned $90k of liens into 18 free-and-clear rentals worth a total of $4.2 M over eight years.

Exit #3 – The Capital Recycler (Fast Flip)
Goal: Compound money quickly without ever touching a property.
How: Buy liens, wait 6–18 months, then sell the unredeemed certificate on the secondary market (or assign before foreclosure).
Exit move: Pocket 8–25 % profit and immediately redeploy capital.
Illustrated Example: Sarah in Mississippi flips $10k of liens every 9–14 months and has doubled her investable cash three times for 5 years

Your 5-Minute Exercise Right Now

Grab a sticky note and write:

“My primary exit is __________. My backup plan is __________.”
Stick it on your monitor. Every future bid must serve at least one of those two exits.

No more random bidding. From today forward, every lien has a job. Every lien needs an endgame. Know when and how to make your move.

 

 

 

This blog is for informational purposes only and should not be relied upon as financial or investment advice. Real estate investing carries risks, and individual results will vary. Always consult with your team of professionals before making investment decisions. The authors and distributors of this material are not liable for any losses or damages that may occur as a result of relying on this information.

When the economy takes a dip, most investors tighten their belts and wait for better days. But seasoned tax lien investors know that recessions can actually open the door to some of the best opportunities out there. By understanding how tax liens have performed during past downturns, you can position yourself to not only weather the storm but come out stronger on the other side.

History Has Shown: Recessions Create More Opportunities

Every major economic slowdown—from the Great Recession of 2008 to earlier downturns has shared one consistent trend: an increase in property tax delinquencies. When people face job losses or reduced income, paying property taxes often slips down the priority list. That means local governments have more unpaid taxes to recover—and more tax lien certificates to auction.

For investors, this translates to a surge in available liens and potentially less competition, especially when other investors are sitting on the sidelines. Those who understand the market cycles and stay active during recessions can scoop up high-quality liens at attractive rates.

Why Tax Liens Hold Up When Other Investments Falter

During a recession, stock markets fluctuate wildly and real estate prices can dip. Tax liens, however, remain tied to something far more stable, the legal obligation of property owners to pay their taxes. Even when home values fall, local governments still collect taxes, and investors still earn interest on those unpaid balances.

Better yet, the interest rates on tax liens don’t fluctuate with market conditions—they’re set by law. So, while bond yields or dividends might drop during a downturn, your tax lien yield stays locked in. It’s a rare corner of the investment world where you can find both predictability and strong returns, even in uncertain times.

Turning Downturns into Growth

While recessions bring uncertainty, they also clear the playing field. Investors who act strategically can find themselves in a stronger position when the economy rebounds. The interest you earn during the downturn and the properties you may acquire through foreclosure can become the foundation of long-term wealth.

Tax lien investing, when done wisely, isn’t about predicting the next economic wave—it’s about riding it with confidence. The investors who studied history and stayed consistent through the lows are the ones who benefited most when the market recovered.

So when the headlines start to sound gloomy, remember this: smart tax lien investors see opportunity where others see obstacles.

 

 

This blog is for informational purposes only and should not be relied upon as financial or investment advice. Real estate investing carries risks, and individual results will vary. Always consult with your team of professionals before making investment decisions. The authors and distributors of this material are not liable for any losses or damages that may occur as a result of relying on this information.

One of the most powerful advantages of tax lien investing is its flexibility. You’re not limited to a single path for profit. In fact, the best investors build multiple revenue streams within the same strategy. By understanding the different ways to generate income from liens, you can turn what might seem like a slow-moving investment into a system that compounds over time.

The first and most common stream is interest income from redemptions. This is the bread and butter of tax lien investing; steady, predictable returns when property owners pay off their delinquent taxes. Depending on the state and the interest rate, those returns can easily outperform many traditional investments. Consistent reinvestment of redeemed funds keeps the cycle going and builds long-term momentum.

Then there’s the potential for foreclosure profits. While not every investor aims to take ownership of properties, some liens do move beyond the redemption period. When that happens, you can foreclose and acquire the property for only the amount of the back taxes. If it’s in good condition and located in a stable area, you can resell or “flip” it for a significant gain. Others choose to hold the property for rental income, turning a one-time lien into an ongoing source of cash flow.

A third revenue stream comes from assignment sales. This is selling your lien to another investor before redemption. This can be especially appealing if you need liquidity or if the lien has appreciated in value due to accumulated interest. In competitive markets, some investors specialize in buying and selling liens like short-term notes, creating profit without waiting through full redemption cycles.

The real magic happens when you combine these strategies with disciplined reinvestment. Each redeemed lien becomes the seed for the next. Over time, this creates a compounding effect that can steadily grow your portfolio and generate a mix of short-term and long-term income.

What makes tax lien investing unique is that you can adapt it to your personal goals. Want a predictable stream of interest? Focus on high-redemption counties. Prefer long-term upside? Target properties with strong potential for foreclosure value. Need flexibility? Use assignment sales to keep capital flowing.

Multiple income paths don’t just increase profits, they add stability. If one stream slows down, the others keep your portfolio working. The result is a system that grows stronger with every cycle, guided by strategy, patience, and reinvestment.

Tax lien investing isn’t about luck or one-off wins. It’s about building a portfolio that earns in more than one way, and keeps earning, year after year.

 

 

 

This blog is for informational purposes only and should not be relied upon as financial or investment advice. Real estate investing carries risks, and individual results will vary. Always consult with your team of professionals before making investment decisions. The authors and distributors of this material are not liable for any losses or damages that may occur as a result of relying on this information.

Every tax lien investor knows the importance of researching property value and location. However, one area that often gets overlooked is environmental risk. It’s easy to get caught up in potential returns, only to discover later that a “great deal” comes with serious cleanup costs or legal complications. Understanding environmental issues tax lien investors face is essential before bidding on distressed or contaminated properties.

Some of the most common risks involve contaminated properties. These can include old gas stations, dry cleaners, or industrial sites that have left behind hazardous materials in the soil or groundwater. If you eventually take ownership of a property like this through foreclosure, you could become responsible for cleanup. That can be expensive enough to wipe out your gains.

Flood zones are another major concern. A property in a high-risk flood area might still look appealing on paper, but hidden insurance costs or repeated damage can reduce its real value. Many counties now include FEMA flood data online, so it’s worth checking those maps before bidding. You can also compare county GIS data with floodplain overlays to see if a property lies within a danger zone.

Vacant land has its own risks, too. It might look like a safe bet, but if the land was ever used for dumping, storage, or farming with heavy chemical use, it may carry residual contamination. Even rural areas can surprise you. Taking the time to search environmental databases, like EPA’s Superfund or state environmental quality listings, can help you avoid costly surprises down the road.

If you do discover potential environmental issues, it doesn’t necessarily mean you should walk away. It does mean you should adjust your strategy. In many cases, liens on those properties still redeem because the owner wants to avoid foreclosure. That means you can still earn your interest return without ever touching the property itself. Just be sure to factor in the risk when setting your bid limits and portfolio balance.

The bottom line is simple: environmental awareness is part of good due diligence. It’s not about finding problems; it’s about avoiding financial traps. The more you know about a property’s physical and regulatory risks before you invest, the more confident, and profitable your decisions will be.

Smart investors don’t just research ownership and value. They research the ground beneath their investment, too.

 

 

 

 

This blog is for informational purposes only and should not be relied upon as financial or investment advice. Real estate investing carries risks, and individual results will vary. Always consult with your team of professionals before making investment decisions. The authors and distributors of this material are not liable for any losses or damages that may occur as a result of relying on this information.