Not all states are created equal when it comes to tax lien and deed investing—and our seasoned coach, Phil, has some strong opinions about where savvy investors should be looking this year.
We asked Phil to share his favorite states for 2025, and his insights reflect a mix of ease, return potential, and investor-friendly processes:
- Florida – “Super easy and safe,” says Phil. Florida stands out for its transparency and well-organized public records, making research and participation straightforward, even for newer investors. It’s also a hybrid state, offering both liens and deeds, giving you options depending on your strategy.
- South Carolina – Phil highlights SC for its great returns and limited competition. It’s a bid-down interest state with a redemption period of one year. Perfect for those seeking strong ROI without as much crowding from large-scale investors.
- Maryland – One of the lesser-known gems. Maryland boasts a high foreclosure rate, which means more opportunities for investors to potentially acquire property if liens aren’t redeemed. Many counties also run auctions online, adding convenience to the equation.
- New Jersey – Don’t overlook the Garden State. Phil likes NJ for its combination of high interest rates (up to 18%) and relatively low competition in many areas. With a longer redemption period (up to two years), it’s better suited for investors with patience and a long-term view.
- Colorado – Offers a solid return (up to 9%) and a well-established online auction system. This makes it accessible and convenient, especially for out-of-state investors looking to expand their reach.
Of course, other popular high-yield states like Illinois (36%), Iowa (24%), and Arizona (16%) continue to attract attention thanks to their generous interest rates. But as Phil’s picks remind us, it’s not always about chasing the biggest number. It’s about finding the right balance of accessibility, return, and competition.
And if acquiring the property is your main goal, states like Texas and Georgia remain strong for deed investing, with relatively quick paths to ownership and clear processes.
Bottom line? Do your research. Every state has its own set of rules, redemption timelines, and bidding formats. The best state for you depends on your investment goals, risk tolerance, and how hands-on you want to be.
Looking for a shortcut? Follow Phil’s lead. You’ll be one step closer to building a smart, strategic portfolio.
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.
