Category: United Tax Liens Blog

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.

One of the first steps in tax-sale investing is recognizing whether you’re buying a lien certificate, bidding on a deed, or operating in a hybrid market. In tax-lien jurisdictions—about two dozen states plus Washington, D.C., you purchase a lien that earns interest until the delinquent owner redeems. Tax-deed areas take a different approach, auctioning the property itself so that winning bidders acquire title (subject, in some cases, to a brief post-sale redemption right). Hybrid markets let you have the best of both worlds: you can acquire a lien and, if it goes unredeemed, convert that lien into full ownership. Knowing which system you’re in shapes everything from your bidding strategy to your expected timeline.

Redemption periods can range from a matter of months to several years, and that variation directly affects your liquidity and risk profile. In a handful of lien states redemption windows may be as short as six months, while in others you might wait up to three years before the owner must repay. In deed states the waiting game often disappears, though places like Texas still extend redemption rights, six months on non-homesteads, two years on homesteads, before title is beyond challenge. If you’re after predictable, steady interest you may be willing to park cash for longer; if you prefer quicker turnover, deed sales or short-window lien states could be a smarter play.

Returns in certificate states are capped by statute, so you know the maximum annual yield up front. Florida’s ceiling sits at eighteen percent, Iowa’s at two percent per month (roughly twenty-four percent annually), and in Colorado your return mirrors prime rate plus nine. Deed markets generally swap an annual rate for a flat penalty. Texas, for example, charges a twenty-five percent penalty on any redemption. Aligning your target return with your comfort around hold periods will help you avoid disappointment: higher caps often carry longer redemptions, while faster markets may cap you at a more modest rate.

How counties run their auctions can feel like a local sport. Some lien states use interest-rate (or “bid-down”) auctions, where bidders undercut each other’s required yield. Others favor premium auctions, demanding a cash overage atop the certificate amount—the highest premium then claims the lien. You’ll even find sealed-bid contests, bulk-lot offerings, and, in rare counties, lotteries for unsold certificates. Becoming fluent in the local format is crucial, since a misstep in your bidding approach can cost you both yield and principal.

Finally, liquidity needn’t be an afterthought even in longer-term certificate markets. Many jurisdictions allow assignment of your lien to another investor. Florida’s modest transfer fee runs about two dollars fifty per certificate, so you can exit early if the right opportunity arises. Counties also publish over-the-counter lists of unsold or county-held certificates, giving nimble investors a first crack at full-rate certificates without sitting through an auction. By weaving together system type, redemption timeline, rate cap, auction style, and secondary-market options, you turn what looks like a passive strategy into a finely tuned, semi-passive engine. Fire up your spreadsheet, set those calendar reminders, and let the tax-sale auctions begin!

 

 

 

 

 

 

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 lien and deed investing is often sold as a hands-off path to “passive income”—and there’s some truth to that. You won’t be chasing tenants, fixing leaky faucets, or answering 2 AM maintenance calls. But like any strategy worth its salt, it takes a bit of research, timing, and system-building to really shine.

In the lien world, your goal is simple: identify properties with unpaid taxes, bid competitively at auction, then collect interest (often in the 8–18 percent range) when the owner redeems. On the deed side, you’re bidding to acquire the title itself—sometimes winning a property at a fraction of market value. Both approaches hinge on understanding local rules, deadlines, and auction quirks—but you don’t need a law degree to get started.

One thing to remember: unlike monthly rent checks, lien and deed returns arrive in lump sums. That payoff might land in three months…or a year. To smooth out your cash flow, spread your budget across several liens and deeds with different redemption or auction dates. A simple spreadsheet (or off-the-shelf tracker) and calendar alerts are all you need to stay on top of key deadlines.

Risk is real—vacant lots, hidden liens, environmental encumbrances, or cloudy titles can derail a deal. You can manage these pitfalls without doing every task yourself. Outsource title searches, order a quick drive-by inspection, or partner with a county-savvy specialist. The goal isn’t to eliminate work entirely, but to systemize it so you’re no longer scrambling.

When you combine a clear vetting process, a diversified mix of liens and deeds, and smart delegation, tax lien and deed investing can become a semi-passive engine for double-digit returns—and the occasional property windfall that feels like pure icing on the cake. It’s not an autopilot ATM, but for those willing to put in the groundwork, it’s one of the most rewarding, low-maintenance corners of real estate. Ready to explore what your next auction could unlock?

 

 

 

 

 

 

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.

Once you’ve acquired a property through a tax deed, the big question becomes: should you flip it for quick profit or hold onto it as a rental? Each strategy has pros and cons, and choosing the right one depends on your goals and market conditions.

Fix and Flip Advantages:

• Faster returns if the property is in high demand.
• Avoids the responsibilities of being a landlord.
• Profits can be reinvested into more tax lien opportunities.

Fix and Flip Disadvantages:

• Requires upfront renovation costs.
• The selling process can take months, tying up capital.
• Market fluctuations can impact resale value.

Long-Term Rental Advantages:

• Provides steady, passive income over time.
• Property value may appreciate, increasing long-term gains.
• Can serve as a hedge against inflation.

Long-Term Rental Disadvantages:

• Requires property management and tenant oversight.
• Unexpected maintenance and vacancy risks.
• Property taxes, insurance, and upkeep reduce profits.

The best approach depends on your risk tolerance and market trends. If home prices are rising, flipping may offer higher profits. If rental demand is strong, holding onto the property can provide long-term financial stability. Some investors choose a hybrid approach, renting for a few years before selling when the market peaks.

 

 

 

 

 

 

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.

Not every tax lien leads to foreclosure, and knowing when to foreclose or when to wait is a crucial part of tax lien investing. If a lien remains unpaid after the redemption period, you may have the legal right to foreclose and take ownership of the property—but should you?

The decision depends on several factors. If the property has strong market value and no major legal complications, foreclosing quickly may be the best move. However, if the property has title issues, structural damage, or unclear ownership, waiting to resolve these problems before proceeding could save time and money.

Another consideration is the local real estate market. If property values are rising, foreclosing sooner rather than later can help you maximize returns. However, if the market is unstable, holding off and allowing more time for redemption may be the safer bet.

Investors should also consider the costs involved. Foreclosing requires legal fees, court filings, and potential property maintenance costs. Running a financial analysis beforehand ensures that foreclosure makes sense for your investment strategy.

 

 

 

 

 

 

 

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 lien investing doesn’t always mean waiting for redemption or foreclosure. Many investors choose to sell their tax lien certificates before the redemption period ends to lock in profits or free up capital for new investments.

The best time to sell a tax lien certificate depends on several factors, including interest rate, redemption period length, and market demand. If you’ve secured a high-interest lien in a state with a strong tax lien market, you may be able to sell it at a premium to another investor before the owner redeems it.

Selling tax liens can be done through secondary markets, tax lien investment groups, or direct transactions with other investors. Some states even allow tax liens to be transferred officially through county offices. The key to maximizing profit is knowing your lien’s value and finding a buyer willing to pay a fair price.

For investors looking for flexibility, selling tax lien certificates can provide an alternative way to generate profits without waiting for a full redemption or foreclosure process.

 

 

 

 

 

 

 

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.

Many investors assume tax lien investing is all about acquiring properties, but that’s not necessarily true. In fact, some of the best tax lien investments never lead to property ownership at all. They simply generate passive income through interest payments.

The majority of tax liens redeem before foreclosure, meaning the property owner pays off their tax debt along with interest. For investors, this can mean earning high returns without the hassle of managing real estate. Instead of dealing with tenants, maintenance, and unexpected repairs, you simply collect interest payments on your liens.

Another strategy is selling tax lien certificates to other investors. Some investors specialize in purchasing liens at auctions and then reselling them for a profit before the redemption period ends. This allows you to generate quick returns without waiting for the full redemption period to play out.

If you prefer a hands-off investment approach but still want exposure to real estate-backed assets, tax lien investing offers a way to profit without becoming a landlord or managing properties. By focusing on high-interest liens in states with favorable laws, you can create a steady stream of passive income through tax lien investing alone.

 

 

 

 

 

 

 

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 a tax lien remains unpaid after the redemption period, you may have the right to foreclose and take ownership of the property. While this can be an exciting opportunity, it also comes with responsibilities and potential challenges.

The first step is ensuring you fully understand the foreclosure process in your state. Some states allow for a streamlined process, while others require court involvement. If foreclosure is required, it’s a good idea to consult with a real estate attorney to navigate the process correctly.

Once you officially take possession of the property, assess its condition. Many tax-delinquent properties have been neglected, so repairs or renovations may be necessary. Before investing heavily in improvements, check for any outstanding municipal violations, code issues, or title complications that need to be resolved.

At this stage, you have several options: fix and flip, hold as a rental, or sell as-is to another investor. Each option has its pros and cons, depending on market conditions and your investment goals. The key is to have a clear exit strategy before acquiring a property through a tax deed.

 

 

 

 

 

 

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.

Most tax liens are redeemed before they reach foreclosure, meaning the property owner pays back the owed taxes plus interest. While this is a win for investors in terms of passive income, it’s essential to know what to expect in the redemption process.

Redemption timelines vary by state, with some lasting only a few months and others extending up to three years. During this period, the owner has the legal right to pay off their back taxes and reclaim full control of their property. As an investor, your role is to simply wait for repayment and ensure you receive your interest earnings.

Once the redemption payment is made, the county will typically notify you and process your payout. In some cases, delays can occur, so staying informed about local tax office procedures is important. If you were hoping to acquire the property but it gets redeemed, don’t be discouraged. This means you’ve successfully made money through interest without the responsibility of property ownership.

For investors looking to build wealth through tax lien investing, handling redemptions smoothly and reinvesting profits into new liens is a key part of long-term success.

 

 

 

 

 

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.

Winning a tax lien at auction is just the beginning of the investment process. What happens next depends on whether the property owner redeems the lien or fails to pay within the required time frame.

Once you’ve purchased a tax lien, you’ll receive a tax lien certificate, which grants you the right to collect the delinquent taxes, plus interest, from the property owner. If the owner pays within the redemption period, you’ll receive your initial investment back along with the interest earned.

If the property owner does not redeem the lien before the redemption period expires, you may have the right to initiate foreclosure and take ownership of the property. This process varies by state and may require legal filings and additional costs.

To stay on top of your investment, regularly check the county’s records for updates on payments and deadlines. Some investors prefer tax liens for their interest earnings, while others strategically pursue liens with the intent of acquiring properties. Either way, understanding the next steps ensures that you maximize your investment.

 

 

 

 

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.