Author: United Tax Liens

Compounding with tax liens is how small wins turn into lasting wealth. Instead of cashing out and starting over, reinvest your returns on a schedule so your capital base grows and each future bid has more earning power.

Compounding With Tax Liens: A Simple Reinvestment Plan

You just got your first redemption check. $8,200 principal plus $1,640 in interest.

Now the real test: What do you do with it?

Most investors celebrate and let the cash sit. Smart ones? They reinvest immediately and let compounding do the work.

Why Reinvestment Changes Everything

Tax lien investing isn't about one big win. It's about consistent, compounding returns.

Start with $20,000 at 12% return. You make $2,400.

Reinvest every redemption? Lien five: $35,247. Lien ten: $62,117.

Same starting capital. The only difference is reinvestment.

The Reinvestment System

Step 1: Set Your Rule

Decide upfront what percentage you'll reinvest:

• 100% for first 3-5 years (pure growth).
• 70% reinvestment, 30% lifestyle once you hit your target size.
• 50/50 when you're ready to live off income.

Pick your rule. Stick to it.

Step 2: Keep a Rolling Auction Calendar

Don't let cash sit idle. Track upcoming auctions and deploy funds within 30-60 days.

Cash in checking earning 0.5%? Wasted. Cash in a lien at 10, 12, 15, 25%? Wealth  building.

Step 3: Diversify as You Grow

Spread re-investments across:

• Multiple counties (reduce risk).
• Different redemption timelines (short and long).
• Mix of property types (mostly residential).

This creates steady redemptions year-round instead of lumpy returns.

Step 4: Track Your Progress

Every quarter, calculate total portfolio value: active liens + cash waiting.

Watching that number climb keeps you reinvesting instead of spending.

Your Action Plan

Decide right now:

1. What percentage will you reinvest?
2. Which three counties for redeployment?
3. What's your target portfolio size before taking income?

Write it down. Commit to it.

A simple way to stay consistent is to set a reinvestment schedule (monthly or quarterly), keep a small cash buffer for surprises, and track your all-in returns—not just the interest rate. The goal is steady momentum, not perfection.

The investors who build lasting wealth aren't chasing the biggest deals. They're quietly reinvesting, year after year, letting time and discipline do the heavy lifting.

Your best return is the one you reinvest.

 

 

 

 

 

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.

If you’re learning how to read county tax lists, the secret is simple: don’t try to evaluate everything. Start by filtering the list down to a manageable shortlist, then review only the fields that actually affect value, risk, and your bidding strategy.

You download the county tax list. 847 properties. Your eyes glaze over by line 23.

Most beginners see that massive spreadsheet and either give up or start bidding randomly. Neither works.

Here's how to scan a tax list like a pro in under an hour.

Step 1: Filter First, Read Later

Don't read top to bottom. Set up your personal filters to eliminate junk immediately:

• Property type: Residential only (skip vacant land and commercial).
• Lien amount: $1,500-$15,000 (sweet spot).
• Property value: At least 2x the lien amount (ideally 3x+).
• Location: Zip codes you've researched.

One pass? You just cut 847 properties down to 60-80 worth looking at.

Step 2: Create Your “Heck No” List

Skip these at any price:

• Mobile homes (unless it includes the land).
• Properties with HOA super-priority liens.
• Flood zones (check FEMA maps).
• Environmental red flags (former gas stations, dry cleaners).
• Lien amount over 60% of assessed value.

Real life: Derek bought a $4,800 lien on a condo with a $38,000 HOA lien hiding behind it. Now he has a “hell no” checklist.

Step 3: Build “Maybe” and “Strong Yes” Piles

“Strong Yes” Pile:

• Lien-to-value under 40%
• Single-family home in stable neighborhood
• County has 75%+ redemption history

Focus 80% of your research time here. These are your moneymakers.

Step 4: Use Google Maps Like a Detective

For every “Strong Yes” property, spend three minutes:

• Street View: Maintained or abandoned?
• Satellite View: Check roof, yard, neighboring homes.
• Nearby comps: Recent sales?

This visual sweep tells you more than any spreadsheet.

Step 5: Track Everything Simply

Create a one-page tracker:

• Property address
• Lien amount
• Assessed value
• Your max bid
• Quick notes

The 60-Minute System

Minute 0-10: Download, apply filters.
Minute 10-20: Flag “heck no” properties.
Minute 20-40: Sort into piles.
Minute 40-60: Google Maps top 10-15 prospects.

You just turned 847 listings into 10 solid opportunities.

Stop trying to analyze everything. Start filtering ruthlessly, researching strategically, bidding confidently.

Behind every property line is a potential payday.

 

 

 

 

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.

The winning bid is only the starting line. The true cost of a tax deed win includes fees, timelines, property risks, and carrying costs that can turn a “deal” into an expensive lesson if you don’t plan ahead.

You just won a tax deed for $35,000 on a property worth $120,000. You're about to make a killing, right?

Maybe. Or maybe you're about to learn why “winning the bid” and “making a profit” are two completely different things.

Here's what gets forgotten: the hidden costs that can turn the dream deal into a break-even nightmare.

The Costs Nobody Warns You About

1. Title Work ($800-$3,500)

That deed might not be clean. Expect clouds on the title, prior liens, or ownership disputes.

You'll need:

• Title search: $300-$800
• Quiet title action: $2,000-$5,000
• Title insurance: $800-$1,500

Example: ‘Mike’ won a $40k deed. Mechanic's lien from 2019. The quiet title cost him $3,200 and four months.

2. Cleanup and Securing ($500-$5,000)

Abandoned properties need:

• Trash removal: $400-$2,000
• Boarding up windows: $200-$800
• Yard cleanup: $300-$1,500
• Changing locks: $150-$300

Hoarder situation or bio-hazard? Add $3,000-$10,000 for professional cleaning.

3. Eviction Costs ($1,500-$4,000)

If someone's still living there, you can't just kick them out.

Budget for:

• Attorney fees: $1,000-$2,500
• Court costs: $300-$500
• Sheriff eviction: $200-$400

4. Holding Costs (The Silent Killer)

Every month you own it:

• Property taxes
• HOA fees: $100-$600/month
• Insurance: $80-$300/month
• Utilities: $100-$250/month

Six months? Easily $3,000-$5,000 gone.

5. Repairs (The Big Variable)

Budget at least 10-15% of property value for surprises. Foundation cracks. Roof leaks. Plumbing. HVAC. They show up after you own it, never before.

The Real Math

Purchase: $35,000
Title work: $2,500
Cleanup: $1,800
Holding (4 months): $2,400
Repairs: $8,000
Total invested: $49,700

Sale price: $110,000
Closing costs: $7,700

Net profit: $52,600

Still great. But not the $85,000 windfall it looked like on auction day.

The Bottom Line

Winning the auction is easy. Keeping the profit requires math, patience, and realistic budgets—because the true cost of a tax deed win is almost never just the winning bid.

Know the true cost of a tax deed win before you bid. Budget for worst-case scenarios, build in a cushion for surprises, and never fall in love with a property at auction.

Winning’s easy. Protecting profit comes down to understanding the true cost of a tax deed win.

(all numbers are examples and not exacts)

 

 

 

 

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.

If you’re a first-time tax lien bidder, confidence comes from having a simple plan you can repeat.

The first time you click “bid” at a tax lien auction, your heart races. Your palms sweat. You second-guess everything.

That's normal. But it doesn't have to paralyze you.

The difference between nervous beginners who freeze and confident investors who win? Preparation, a clear plan, and knowing your limits before the auction starts.

Step 1: Do Your Homework Until It's Boring

Confidence comes from knowing you've done the work. Before you bid, research until you could teach someone else about that property.

Your pre-auction checklist:

• Pull the property record card (most counties post these online).
• Check Google Street View and satellite images.
• Verify lien amount vs. property value (aim for <50% or less).
• Confirm redemption rates for that county (look for 70%+).
• Read the auction rules twice.

Example: ‘Sarah’ spent three weeks researching her first county. She watched two auctions without bidding, just to see how they moved. When she finally bid, she won a $6,200 lien that redeemed in 11 months at 12%. She wasn't lucky. She was ready.

Step 2: Set Your Limits in Stone

The biggest mistake first-time bidders make? They decide their max bid in the heat of the moment.

Write down your limits before logging in:

• Max bid per lien: $______
• Max total deployment today: $______
• Walk-away rule: “If bidding goes above ___% of property value, I'm out.”

Stick to it. No exceptions. Auction adrenaline will convince you to overpay if you let it.

Step 3: Start Small and Build Momentum

You don't need to win big on your first try. You need to prove the process works.

Start with one or two smaller liens in counties with high redemption rates. Think $200-$500 range. Low risk, real returns, real experience.

Once you see your first redemption check, the fear disappears. You're not a beginner anymore. You're an investor with a track record.

Step 4: Everyone Started Where You Are

Every six-figure tax lien investor had a first auction where they had no idea what they were doing. The only difference? They placed the bid anyway.

You don't need to know everything. You just need to know enough to make one smart decision.

Your Action Plan

Before your next auction:

1. Research three liens completely. Pick one to bid on.
2. Write your max bid on a sticky note.
3. Watch one full auction without bidding to see how it flows.
4. Place your first bid with money you're comfortable tying up for 12-18 months.

Confidence isn't about feeling fearless. It's about being prepared enough to act despite the fear.

 

 

 

 

 

 

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.

If you’re looking to build tax lien revenue streams, the goal is to create repeatable returns; not one-off wins.

And if you don't know the difference between a tax lien and a tax deed, you're about to bid on the wrong thing at the wrong auction. That's an expensive lesson nobody needs to learn twice.

Let's make this crystal clear.

Tax Liens: You're the Bank

When you buy a tax lien certificate, you're paying someone's delinquent property taxes. The county gives you a certificate that says the owner now owes you that money, plus interest.

How it works:

• You pay the past-due taxes at auction.
• The owner has a redemption period (6 months to 5 years, depending on the state) to pay you back with statutory interest.
• If they redeem, you get principal plus interest (often 10-18%).
• If they don't redeem, you can foreclose and potentially take ownership.

Best for: Investors who want passive, predictable returns without managing property.

Example: ‘Linda’ buys $80k worth of liens every year. Over 90% redeem within 18 months. She averages 14% annual returns and has never dealt with a tenant or a toilet.

Tax Deed Certificates: You're Buying the Property

When you buy a tax deed, you're buying the actual property at auction, often for a fraction of market value.

How it works:

• County forecloses on the property for unpaid taxes.
• Property goes to public auction.
• The highest bidder wins the deed.
• You now own real estate and can rent, flip, or hold it.

Best for: Investors who want to acquire property at steep discounts and don't mind the extra work.

Example: ‘Tom’ bought a tax deed on a 3/2 house for $48k. Market value was $185k. After $22k in repairs and six months of title work, he sold it for $170k. One deal, $100k profit.

The Key Differences

Tax Liens: You're a lender. The owner can redeem. You earn interest. Passive income. Lower cost. Minimal time.

Tax Deeds: You're a buyer. Typically redemption. You earn through resale. Active real estate. Higher cost. Significant effort.

Which States Do Which?

Tax lien states: Florida (hybrid),  Iowa, Maryland, Montana, and about 15 others.

Tax deed states: California, Idaho, Minnesota, New Hampshire, Oklahoma and about 15 others.

How to Decide Which One Fits You

Ask yourself: Do I want checks or keys?

Want steady, hands-off interest income? Focus on tax liens in high-redemption states.

Want to acquire real estate below market value and willing to deal with repairs and title work? Go after tax deeds.

Many experienced investors do both. They keep 70-80% of capital in safe, high-redemption liens for cash flow, then use 20-30% to cherry-pick deed opportunities.

Know which one you're buying before you bid. Know which strategy fits your goals. And never assume the rules are the same from state to state.

Not all liens are created equal. Know what you're buying.

 

 

 

 

 

 

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.

In this guide, we’ll break down tax lien revenue streams you can build for more consistent investing income.

Many investors spend more time planning their vacations than planning their tax lien strategy. Then they wonder why they keep making the same mistakes at every auction.

January isn't just another month. It's your chance to stop winging it and start winning it.

Step 1: Run Your Honest Performance Review

Pull out every lien you bought last year. All of them.

Ask yourself:

• Which liens redeemed fastest? (These counties are your sweet spots.)
• Which ones are still sitting unredeemed past 18 months?
• Did you overpay at any auction because you got caught up in bidding wars?

Step 2: Set Goals That Actually Mean Something

Forget vague wishes like “make more money.”

Get specific:

• Target return: “I want 12-15% annualized return.”
• Volume goal: “I'll deploy $50k into 15-20 quality liens.”
• Time commitment: “Two auctions per month, max 10 hours of research per week.”

Write these down. Put them where you'll see them every week.

Step 3: Pick Your Strategy and Stick to It

If you can't chase redemptions AND deed plays at the same time. Pick your primary path:

Path A: High-Redemption Interest Player
Target 80%+ redemption counties, collect steady 10-16% returns, reinvest quarterly.

Path B: Selective Deed Hunter
Focus on 40-60% redemption areas where you can acquire undervalued property.

Many successful investors do 80/20. Eighty percent in high-redemption liens for cash flow, twenty percent in strategic deed plays for home runs.

Step 4: Build Your Pre-Auction Checklist

Create a one-page checklist you run through every single time:

✓ Does this county fit my target redemption rate?
✓ Is the lien-to-value ratio under 50%?
✓ Have I verified the property type and condition?
✓ Am I bidding based on data or emotion?

The moment you skip it is the moment you overpay for junk.

Your 10-Minute Exercise Right Now

Answer these three questions:

1. What was my biggest tax lien win last year, and why did it work?
2. What was my biggest mistake, and how do I avoid repeating it?
3. If I could only invest in three counties this year, which three and why?

That's your game plan. Everything else is noise.

New Year's resolutions fade by February. Investors who set clear strategies and track what works? They're the ones compounding wealth while everyone else keeps guessing.

New year, smarter tax lien strategy. Time to review and reset.

 

 

 

 

 

 

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.

Generational wealth through tax liens isn’t built with one big win; it’s built with repeatable systems. When you reinvest returns, diversify your liens, and manage risk like a portfolio (not a lottery ticket), you give your capital time to compound and become something you can pass down.

Why Liens Work So Well Across Generations

• The rules are set by state statute – your kids don’t have to renegotiate rates.
• No tenants, no repairs, no 3 a.m. calls.
• Interest compounds through consistent reinvestment.
• The portfolio can live inside a trust or LLC with clear instructions.

The Simple Framework

1. Build the Engine – Reinvest 100 % of redemptions for the first 10–15 years.
2. Document Everything – Keep a one-page “family playbook” that explains your favorite counties, bidding rules, and redemption strategy.
3. Structure Properly – Place the portfolio in a revocable living trust or family LLC while you’re still in control.
4. Teach Early – Bring one child or grandchild into the process each year. Show them how to read a county list and why you bid the way you do.
5. Shift Gears Later – Once the portfolio is large enough, switch from 100 % reinvestment to taking a sustainable income stream while principal keeps growing.

A modest $50k portfolio reinvested at an average 12–14 % blended return can grow quietly into seven figures over two decades—without ever touching the principal.

You don’t need to be a genius. You just need consistency, clear documentation, and a structure that outlives you. That’s how ordinary investors create extraordinary legacies with tax liens.

Build wealth that outlives you. Teach the next generation tax liens.

 

 

 

 

 

 

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.

Let’s cut through the noise and compare the two paths side-by-side so you can decide which one actually fits your life.

	Traditional Real Estate (Rentals/Flips)	Tax Liens & Deeds
Typical Return	6–12 % cash-on-cash (after vacancies, repairs, management)	8–25% statutory interest (if redeemed) + potential deed upside
Time Required	Ongoing: tenants, repairs, accounting	Mostly front-loaded research; then very passive
Management Hassles	Tenants, toilets, turnover, taxes	Zero tenants, zero repairs (until you take a deed)
Liquidity	6–12+ months to sell a property	Redemption 6–36 months or sell the lien faster
Capital Intensity	High (down payments + rehab + reserves)	Lower per deal; cash-heavy but smaller tickets
Biggest Risk	Vacancy + unexpected $20k roof	Low-redemption county or hidden prior lien
Scalability	Limited by management bandwidth and financing	Limited only by research time and capital

When Traditional Real Estate Wins
You want monthly cash flow, enjoy the tangible asset, and don’t mind rolling up your sleeves (or hiring a property manager).

When Tax Liens Win
You want predictable, high-yield, truly hands-off income while keeping most of your time free. Liens act like a bond backed by real estate, except the interest rate is set by state law and usually beats anything you’ll find in the bond market.

Many investors I know run both: they use lien income to fund down payments on rentals, or they take the occasional tax deed and turn it into a long-term hold. The beauty is you don’t have to choose forever – you can let the lien returns compound quietly while you decide.

Bottom line: traditional real estate is active wealth-building. Tax liens are passive wealth-building with real estate collateral.

 

 

 

 

 

 

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.

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.