Category: United Tax Liens Blog

The Best Tools for Tracking Tax Lien Auctions

One of the biggest mistakes new investors make is assuming tax lien investing is only about interest rates and redemption periods. In reality, knowing where to look is half the battle.

The counties do not make it easy. Lists are scattered, auction rules vary, and deadlines move quickly. Without the right tools, it is easy to miss good opportunities or waste hours researching liens that were never worth bidding on.

The good news is that you do not need dozens of platforms. A small, well chosen tool stack can save you time, reduce mistakes, and make tax lien investing far more manageable.

Why Tools Matter in Tax Lien Investing

Tax lien investing is a data driven business.

You are tracking:

• Auction dates and registration deadlines
• County specific bidding rules
• Property data and tax histories
• Redemption outcomes and follow up tasks

Trying to manage all of that manually usually leads to missed deadlines or rushed decisions. The right tools help you stay organized so you can focus on making better bids instead of scrambling for information.

County Treasurer Websites

Every tax lien investor should start with county treasurer and tax collector websites.

This is where you find:

• Official auction calendars
• Registration requirements
• Bid formats and interest rate rules
• Redemption timelines

The downside is that every county site is different. Some are easy to navigate. Others feel like they have not been updated in years. Even so, these sites are your source of truth and should always be checked before bidding.

Auction Platforms

Many counties now host sales through third party auction platforms. These sites centralize bidding and often allow online participation.

Common features include:

• Downloadable lien lists
• Proxy bidding options
• Post auction reporting

While convenient, these platforms can create competition. They also do not replace due diligence. Think of them as bidding tools, not research tools.

Property Research Tools

Before bidding on any tax lien, you need to understand the underlying property.

Good property research tools help you:

• Check assessed and market values
• Review ownership and tax payment history
• Identify vacant land versus improved property

You are not buying blind. A lien on a property that redeems every year is very different from one where taxes stopped suddenly. Property data gives you that context.

Tracking and Organization Tools

Spreadsheets still play a major role in tax lien investing.

Even experienced investors track:

• Lien purchase dates
• Interest rates or bid premiums
• Redemption deadlines
• Follow up actions

Some investors use simple spreadsheets. Others use more advanced tracking software. The key is consistency. A tool only works if you actually use it.

Education Based Tools

One often overlooked category is education and workflow tools.

Checklists, state specific guides, and training resources help you avoid mistakes that cost far more than any software subscription. Understanding how a state works before bidding is a tool in itself.

The investors who do best are usually the ones who combine tools with education rather than relying on software alone.

Final Thoughts on Tax Lien Auction Tools

There is no single tool that does everything. The goal is not to collect software. The goal is to save time and reduce risk.

Start with official county information. Add reliable auction platforms. Use property research tools to validate deals. Track everything in one place so nothing slips through the cracks.

When you know where to look and how to organize what you find, tax lien investing becomes far more predictable and far less stressful.

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.

Texas Tax Deed Investing: What Makes It Different

Texas tax deed investing is one of those topics that sounds straightforward until you actually dig into how the system works. On the surface, it feels simple. You go to an auction, you buy property for unpaid taxes, and you either make money or you do not.

But Texas does not operate like most other tax sale states. If you come from a tax lien background or even another tax deed state, Texas can feel unfamiliar very quickly.

Once you understand the differences, it starts to make sense why so many experienced investors keep Texas in their rotation.

Texas Does Not Sell Tax Liens

The biggest difference is this. Texas does not sell tax liens. Texas sells the property itself.

When you win a Texas tax sale, you receive a tax deed shortly after the auction. That alone puts Texas in a different category from states where you are buying debt and waiting years to see what happens.

That said, getting a deed does not mean the deal is finished.

Redemption Happens After the Sale

Texas uses what is known as a redeemable deed system. This means the former owner still has the legal right to reclaim the property after the auction.

The redemption period depends on the type of property.

Homestead and agricultural properties have a two year redemption period.
Most other properties have a six month redemption period.

If the former owner redeems, they must pay you back your full purchase price plus a penalty that is set by law.

The penalty is twenty five percent if the property is redeemed within the first year.
If the property qualifies for a second year redemption, that penalty increases to fifty percent.

This is not an interest rate you bid on. It is fixed and written into Texas statute.

Why Texas Moves Faster Than Most States

Another thing that catches people off guard is how fast Texas tax sales move.

Texas does not have multi year waiting periods after the auction. Properties typically go to sale after a few years of unpaid taxes, and counties hold sales every month.

That means more opportunities, but also more competition.

You usually know within months whether a deal is going to redeem or turn into long term ownership. For many investors, that speed is a major advantage.

Texas Auctions Are Competitive by Nature

Texas tax deed sales use a premium bid format. Bidding starts at the amount of taxes owed and goes up from there.

There is no interest rate to negotiate and no guaranteed return unless the property redeems. That makes your bidding strategy critical.

Smart Texas investors do not chase properties emotionally. They assume redemption will happen and bid accordingly. If the owner redeems, the return is solid. If they do not, the numbers still need to make sense as an ownership deal.

That discipline is what separates profitable Texas investors from frustrated ones.

A Common Mistake New Investors Make

One of the most misunderstood parts of Texas tax deed investing is possession during the redemption period.

Even though you receive a deed, you cannot evict occupants during redemption. You cannot remodel. You generally should not interfere with the property at all.

Texas is a waiting game during that window. You are being compensated for that wait through the redemption penalty.

Investors who respect that reality tend to do much better in this state.

Why Texas Is Still a Favorite

Despite the competition and the learning curve, Texas remains popular for good reason.

The rules are clear. The timelines are short. Sales happen regularly. Returns are defined by statute rather than bidding wars over interest rates.

When Texas works, it works cleanly. Either you earn a strong redemption return, or you end up owning property through a transparent process.

Final Thoughts on Texas Tax Deed Investing

Texas tax deed investing is not complicated, but it is different.

The investors who struggle are usually the ones trying to treat Texas like another state. The investors who succeed are the ones who understand the system and price deals with discipline.

When you know the rules, Texas can be fast, predictable, and rewarding.

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.

Why Tax Lien Interest Rates Matter More Than You Think

Tax lien interest rates play a major role in determining returns, competition, and timing for investors. While statutory rates may look attractive on paper, broader interest rate trends quietly influence how tax lien auctions actually play out.

Understanding how interest rates affect tax lien investing helps you see why the same lien can perform very differently depending on market conditions. The rate printed in the statute is only part of the story.

When rates are low across the broader economy, tax liens look especially attractive. Fixed statutory returns suddenly stand out compared to savings accounts, bonds, or other low-yield options. That extra attention brings more bidders into auctions, which changes outcomes quickly.

In competitive states that bid down interest rates, lower national rates often mean investors are willing to accept smaller returns. They are chasing yield wherever they can find it. As a result, winning bids tend to settle at lower interest levels than they would in a higher-rate environment.

When interest rates rise, the dynamic shifts. Investors have more alternatives, and tax lien auctions often see less aggressive bidding. That can create opportunities for disciplined buyers who understand the long game rather than chasing headline yields.

Higher rates can also affect redemption behavior. Property owners facing higher borrowing costs may struggle more to refinance or access short-term funds. In some cases, this slows redemption timelines, extending how long your capital stays tied up.

That delay cuts both ways. Interest continues to accrue, but liquidity decreases. Investors who plan for shorter holds may find higher-rate environments more frustrating than profitable.

Competition is where interest rates quietly do the most damage or create the most opportunity. When money is cheap, new investors flood auctions expecting easy returns. When money tightens, many of those same investors step back, leaving fewer bidders and more rational pricing behind.

Experienced investors pay attention to this cycle. They don’t just ask what a lien pays on paper. They ask who else is likely to be bidding and why.

It’s also important to separate statutory rates from realized returns. Even if a state allows high interest, competitive bidding can push actual yields far lower. Rising or falling interest rates outside the tax lien world influence how willing investors are to accept that tradeoff.

This is why watching interest rate trends matters even in states with fixed returns. The environment shapes behavior, not just numbers.

Tax lien investing rewards patience and awareness. Investors who understand how interest rates affect tax lien investing can adjust expectations, bidding strategies, and capital allocation before auctions ever begin. That preparation often matters more than the rate attached to any single lien.

Interest rates don’t just change yields. They change people. And in tax lien auctions, people set the price.

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.

Why Property Research Matters More Than the Auction

If you want to know why most beginners struggle with tax lien investing, it usually comes down to poor due diligence. The auction itself is easy. The work that happens before you bid is what determines whether a lien becomes a clean return or an expensive lesson.

Learning how to research property tax liens is less about complex tools and more about knowing what to look for. A few simple checks can eliminate the majority of bad deals before you ever place a bid.

Due diligence is your insurance policy. When it’s done right, it keeps emotion out of the auction and replaces it with confidence.

Start With the Property, Not the Lien

One of the biggest mistakes new investors make is focusing only on the tax amount. A low-dollar lien looks attractive, but the underlying property is what determines risk.

The first question should always be: what is this property? Is it a single-family home, vacant land, a condo, or something commercial? Each comes with very different redemption behavior and foreclosure potential.

Once you understand the property type, you can decide whether it fits your strategy before going any further.

Use Maps to Eliminate Obvious Red Flags

Before pulling reports or spreadsheets, open a map.

Satellite and street-view images can reveal problems instantly. Landlocked parcels, properties sitting in flood zones, lots in the middle of highways, or structures that appear demolished are all easy to spot visually.

Maps also show neighborhood context. A lien tied to a house surrounded by maintained properties is very different from one in a declining or inaccessible area.

If the map raises concerns, there’s no reason to dig deeper.

Check Public Records for Ownership and History

Once a property passes the map test, public records come next. The county assessor and tax collector sites are usually enough to get started.

Look at ownership history, assessed value, and prior tax payment behavior. A property owner who pays late every year but always redeems is very different from one who suddenly stopped paying after decades of consistency.

That payment history often tells a clearer story than any spreadsheet ever will.

Understand What You’re Really Bidding On

Not all tax liens behave the same, even within the same state. Some states require you to pay subsequent taxes. Others allow penalties or guaranteed returns. Some foreclosures are straightforward, while others are expensive and slow.

Researching the property also means understanding the rules attached to that lien. A great property paired with unfavorable rules can still be a bad investment.

This is where many beginners skip steps and assume all liens work the same way. They do not.

Watch for Hidden Deal Killers

Certain red flags don’t show up in auction lists but matter a lot later. Environmental issues, extreme access problems, HOA complications, or properties tied to unusual zoning can turn small liens into big headaches.

Vacant land, in particular, deserves extra scrutiny. Many parcels look fine on paper but have no legal access or usable value.

If something feels unclear and you don’t know how to verify it, that’s usually a sign to move on.

Speed Comes From Process, Not Shortcuts

Experienced investors aren’t faster because they rush. They’re faster because they follow the same research process every time.

Maps first. Records second. Rules third. Red flags last.

Once you build that habit, researching tax lien properties becomes efficient instead of overwhelming. You stop chasing every deal and start filtering aggressively.

That’s when bidding becomes calm instead of stressful.

Final Thoughts

Learning how to research property tax liens is the skill that determines long-term success in this space. Auctions reward preparation, not optimism.

You don’t need to research everything. You just need to research the right things, in the right order.

When due diligence becomes routine, confidence follows. And confident investors make better decisions long after the auction ends.

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.

Case Study: The Tax Lien That Wasn’t Worth It

This lien didn’t look dangerous. That’s what made it interesting.

It showed up like dozens of others do every auction cycle. Small tax amount. Decent interest rate. A parcel that appeared to sit in an area with some activity. Nothing flashy, nothing alarming, nothing that screamed “walk away.”

Those are often the ones that deserve the most attention.

At first glance, it felt easy to justify bidding. Even if the lien redeemed, the return would be fine. If it didn’t, owning land in that county didn’t sound like a terrible outcome. On paper, it looked like a low-risk decision.

But tax lien investing has a way of punishing surface-level confidence.

The shift happened when the analysis stopped focusing on redemption and started focusing on ownership. Not hypothetical ownership, but real ownership, what it would actually mean to hold that property if things didn’t go according to plan.

Pulling up the parcel map changed everything.

The lot had no legal road access. No frontage. No recorded easement. It wasn’t just inconvenient to reach, it was effectively boxed in. Any future use would require cooperation from neighboring owners, and there was no guarantee that would ever happen.

That detail wasn’t hidden. It just wasn’t obvious unless you slowed down enough to look for it.

Suddenly, the low lien amount didn’t feel like protection anymore. It felt like a distraction.

If the lien redeemed, the upside was limited. If it didn’t, foreclosure would produce a piece of land that was difficult to sell, difficult to use, and difficult to explain to a future buyer. The exit strategy wasn’t unclear, it was bad.

That’s when the deal stopped being about returns and started being about risk.

This is one of the most misunderstood tax lien investing risks. People assume the danger lies in whether an owner redeems or not. In reality, the bigger risk is ending up tied to an asset you never should have wanted in the first place.

Property owners redeem all the time. Bad properties stay bad.

Walking away from this lien didn’t feel dramatic. There was no tension, no last-second decision at the auction screen. It was a quiet choice made well before bidding opened. And that’s usually how the right decisions look.

The mistake would have been bidding just to stay active. Or convincing yourself that a low dollar amount automatically equals low downside. Or assuming you could “figure it out later” if foreclosure ever happened.

That’s not investing. That’s hoping.

What this lien reinforced is something experienced investors already know but beginners often learn the hard way: winning auctions is not the goal. Deploying capital into situations with clean exits is.

Sometimes the best deal is the one you don’t make.

And sometimes the biggest win is recognizing early that a lien was never worth owning, no matter how harmless it looked at first glance.

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 Tax Lien Redemption Period Explained: What Really Happens After the Auction

If you’re new to tax lien investing, the auction can feel like the finish line. You register, you bid, you win, and it feels like the hard part is over. In reality, the auction is just the starting point, and what happens next matters far more than most beginners realize.

That next phase is the tax lien redemption period. Understanding how it actually works is what separates frustrated first-time buyers from investors who stick around long enough to see consistent results.

The redemption period is where patience, cash flow planning, and expectations all get tested. This is the part of tax lien investing that no one really talks about, mostly because it isn’t exciting. But it’s also where most mistakes are made.

Let’s walk through what really happens after the auction, without the hype.

What Is the Tax Lien Redemption Period?

The tax lien redemption period is the amount of time a property owner has to pay back their delinquent taxes plus interest after you purchase the lien. During this window, the property owner still has full legal rights to the property. You are simply holding a claim against the taxes owed.

That means you do not own the property, you cannot collect rent, and you cannot take possession. Your role during this time is passive, even though your money is actively at work earning interest.

It’s more helpful to think of tax liens as delayed-return investments rather than discounted real estate purchases. The redemption period exists to give owners a final opportunity to make things right, not to hand properties to investors quickly.

Each state sets its own redemption timeline, and those timelines vary widely. Some states move quickly, while others require years of waiting.

For example, Maryland’s redemption period is roughly six months, Florida allows up to two years, Arizona runs three years, and Wyoming can stretch to four. That timeline has a bigger impact on your strategy than most investors initially realize.

What Actually Happens While You’re Waiting

This is the part most beginners underestimate.

Once the auction is over, there are no updates, no progress indicators, and no sense of momentum. The county doesn’t check in, and the property owner doesn’t notify you of their plans. In most cases, you simply wait.

During that time, interest accrues based on your winning bid. The owner can redeem at any point, whether that’s a few weeks after the sale or right before the deadline. Depending on the state, you may also be required to pay future property taxes to protect your lien position.

In states like Arizona, paying subsequent taxes is mandatory if you want to remain in first position. If you fail to do that, your lien can be sold again, potentially wiping out your position entirely.

This is why experienced investors track redemption dates, tax due dates, and notice requirements carefully. The waiting period may be quiet, but it still requires attention.

Why Most Liens Redeem and Why That’s Not a Bad Thing

Here’s a reality that surprises a lot of new investors: most tax liens never turn into properties.

In many counties, more than 90 percent of liens redeem. When that happens, the property owner pays off the taxes, and you receive your original investment plus interest and any statutory penalties allowed by law.

That outcome is not a failure. It is the expected result.

Problems arise when investors buy liens assuming property ownership is the default outcome. When redemption happens, they feel disappointed instead of satisfied, even though the investment performed exactly as designed.

The tax lien redemption period rewards investors who are comfortable with delayed income and predictable outcomes. Ownership is the exception, not the rule.

Cash Flow Planning During the Redemption Period

This is where many investors quietly exit the space.

Your capital is tied up for the entire redemption period. You can’t redeploy it, leverage it, or accelerate the timeline. Once the lien is purchased, the clock moves at the pace set by state law.

Successful investors plan around this reality. They spread capital across multiple liens instead of tying it up in a single purchase. They avoid committing money they might need within the next one to three years. Most importantly, they treat lien funds as locked capital from day one.

If you expect liquidity, tax lien investing will feel restrictive. If you plan for illiquidity, it becomes manageable.

The Mental Shift That Makes Tax Lien Investing Work

Investors who succeed in tax liens don’t obsess over redemption. They expect it.

They view the tax lien redemption period as a waiting game with clear rules, not a gamble. It’s a delay in cash flow, not a loss. And it’s a numbers-based strategy, not an emotional one.

When a lien redeems, the cycle is complete. Only when it doesn’t redeem do foreclosure timelines, legal steps, and property strategies even come into play.

The mistake is assuming ownership before the law allows it.

Final Thoughts

Winning a lien at auction feels exciting, but understanding the tax lien redemption period is what keeps you grounded afterward. This phase is slow, quiet, and predictable by design.

That predictability is exactly what makes the strategy work for investors who respect the process. If you expect instant results, frustration is almost guaranteed. If you expect time to do its job, you’ll be prepared.

This is where real tax lien investors are made.

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.

Tax liens in a changing economy require a slightly different playbook—because interest rates, delinquencies, and competition don’t stay constant.

When the economy shifts, most investors panic. Tax lien investors? We adapt.

Inflation, rising rates, recessions, booms. They all affect the game differently. Here's how investors adjust and keep winning.

When Inflation Rises (Like 2022-2024)

What happens:

• Property values climb (sometimes artificially)
• Property taxes increase
• More owners struggle to pay

What it means for you:

• More liens available at auction
• Your lien-to-value ratios improve automatically (your $10k lien on a property now worth more)
• Redemption rates may dip slightly (owners under financial pressure)

How to adapt: Stick to properties with strong equity cushions. Avoid overleveraged areas where values might be corrected, hard.

When Interest Rates Spike

What happens:

• Borrowing gets expensive
• Home sales slow
• Some owners can't refinance

What it means for you:

• Liens take longer to redeem (owners waiting for better rates)
• Your interest keeps accruing in some areas (more profit if you're patient)
• Fewer investors competing at auction (many are scared)

How to adapt: Embrace longer hold times. Budget for 18-24 month redemptions instead of 12. The extra interest makes up for the wait.

When the Economy Tanks (Recession)

What happens:

• Job losses increase
• Foreclosures rise
• Property values drop in weak markets

What it means for you:

• Huge lien inventory (opportunity)
• Lower redemption rates (more potential deed acquisitions)
• Less competition (nervous investors pull back)

How to adapt: This is when you hunt. Focus on stable counties with diversified economies. Avoid one-industry towns. Be ready to foreclose and hold if needed.

When the Economy Booms

What happens:

• Everyone's paying taxes
• Fewer delinquencies
• More competition at auctions

What it means for you:

• Smaller lien inventory
• Sky-high redemption rates (great for passive income)
• Bidding wars drive down yields

How to adapt: Accept lower returns but higher certainty. Focus on volume and quick turnover.

The Universal Truth

Every economic cycle creates opportunity. You just need to know what you're playing for:

• Good times = high redemptions, passive income
• Tough times = deed opportunities, patient capital wins

The investors who thrive aren't the ones hoping for perfect conditions. They're the ones who read the room and adjust their strategy accordingly.

The economy changes. Smart investors adapt.

 

 

 

 

 

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.

A balanced tax lien portfolio helps you avoid relying on one county, one property type, or one outcome.

Most new investors make the same mistake: they find one county they like and dump all their money there.

Then that county changes its redemption laws, or the local economy tanks, or competition floods in. Suddenly their entire portfolio is at risk.

Balance isn't boring. It's how you survive and thrive long-term.

The Three Pillars of Portfolio Balance

1. Geographic Diversification (Spread Across Counties and States)

Don’t put more than 30% of your capital in a single county. Ideally, spread across 3-5 different counties or 2-3 states.

Why? Each county has different:

• Redemption rates
• Interest rates
• Economic conditions
• Auction competition

Illustration: ‘Marcus’ had $60k concentrated in one Michigan county. When automotive layoffs hit, redemptions dropped from 85% to 52% in one year. He's still waiting on $28k tied up in slow liens. Now he spreads across Iowa, Arizona, and Florida.

2. Property Type Mix (Residential Anchors Your Portfolio)

Target allocation:

• 70-80% single-family residential (high redemption, steady returns)
• 10-20% multi-family or commercial (higher risk, higher potential)
• 0-10% vacant land (if you know the area well)

Residential properties redeem most consistently. Use them as your foundation.

3. Redemption Timeline Stagger (Keep Cash Flowing)

Don't buy all 12-month liens or all 36-month liens. Mix it up:

• 40% short redemption (6-12 months)
• 40% medium redemption (12-24 months)
• 20% longer redemption (24-36 months)

This creates steady cash flow. As short-term liens redeem, you reinvest while longer ones keep accruing interest.

What Balance Looks Like in Real Numbers

$50k portfolio example:

• $15k in Iowa (high redemption residential)
• $12k in Arizona (medium redemption residential)
• $10k in Florida (mix of residential and strategic deed plays)
• $8k in Indiana (short-term redemptions)
• $5k in strategic opportunities (commercial or land you researched heavily)

The Simple Balance Test

Ask yourself:

• If one county stopped redeeming tomorrow, would I be okay? (If no, you're too concentrated.)
• Do I have liens redeeming in different quarters? (If no, stagger your purchases.)
• Am I mostly in property types I understand? (If no, simplify.)

Balance doesn't mean you need 50 tiny liens across 20 states. It means you're protected against any single point of failure while maximizing your chances of consistent returns.

Balance beats bold. Spread your risk healthfully.

 

 

 

 

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.

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.