Tag: Real Estate Investing

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.

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.