Tag: Tax Lien

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 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.

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

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

Step 1: Run Your Honest Performance Review

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

Ask yourself:

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

Step 2: Set Goals That Actually Mean Something

Forget vague wishes like “make more money.”

Get specific:

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

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

Step 3: Pick Your Strategy and Stick to It

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

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

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

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

Step 4: Build Your Pre-Auction Checklist

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

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

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

Your 10-Minute Exercise Right Now

Answer these three questions:

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

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

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

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

 

 

 

 

 

 

This blog is for informational purposes only and should not be relied upon as financial or investment advice. Real estate investing carries risks, and individual results will vary. Always consult with your team of professionals before making investment decisions. The authors and distributors of this material are not liable for any losses or damages that may occur as a result of relying on this information.

Generational wealth isn’t about leaving a single big check; it’s about leaving a system that keeps producing income long after you’re gone. Tax liens can be one of the cleanest, simplest systems for exactly that.

Why Liens Work So Well Across Generations

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

The Simple Framework

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

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

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

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

 

 

 

 

 

 

This blog is for informational purposes only and should not be relied upon as financial or investment advice. Real estate investing carries risks, and individual results will vary. Always consult with your team of professionals before making investment decisions. The authors and distributors of this material are not liable for any losses or damages that may occur as a result of relying on this information.

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

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

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

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

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

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

 

 

 

 

 

 

This blog is for informational purposes only and should not be relied upon as financial or investment advice. Real estate investing carries risks, and individual results will vary. Always consult with your team of professionals before making investment decisions. The authors and distributors of this material are not liable for any losses or damages that may occur as a result of relying on this information.

You can only scale so far with your own money and your own time allow. At some point, the best investors stop trying to do it all alone and start doing it with the right people. Here’s how partnerships can turn a modest lien portfolio into a seven-figure machine.

The Three Partnership Models That Actually Work

1. The Money Partner
   You bring the expertise, they bring the cash.
   Split: They fund 100% of the lien, you manage everything, 50/50 on interest/redemption profits.
2. The Boots-on-Ground Partner
   You’re remote, they’re local.
   They drive properties, handle foreclosure paperwork, and manage deeds.
   Split: 60/40 or 70/30 favoring the local partner (they do the dirty work).
   Bonus: They can bring off-market lien deals you’d never see online.
3. The Mastermind / Deal-Share Group
   4–8 serious investors meet monthly. Everyone brings their best county and best liens to the table.
   No money crosses hands; you just piggyback on each other’s research.
   Groups can save hours of research and open new counties to your portfolio

How to Find (and Keep) Great Partners

• Start small: one $5k–$10k lien together as a test.
• Use a simple one-page partnership agreement
• Over-communicate: weekly update emails, shared Google Drive, monthly 15-minute calls.
• Pay fast and pay fairly; your reputation is everything.

Stop thinking “I have to do this alone.” Start thinking “Who do I need on my team?”

Team up to scale up; collaboration turns small liens into big wins.

 

 

 

 

 

This blog is for informational purposes only and should not be relied upon as financial or investment advice. Real estate investing carries risks, and individual results will vary. Always consult with your team of professionals before making investment decisions. The authors and distributors of this material are not liable for any losses or damages that may occur as a result of relying on this information.

When the news screams “recession,” most real estate investors panic and hide under their desks. Meanwhile, the smartest tax lien investors are quietly licking their chops. Here’s why downturns are secretly the best time to build serious wealth with liens (and exactly how to take advantage).

Why Downturns Are a Tax Lien Investor’s Dream

1. Delinquency Rates Explode
   Lose a job → can’t pay property taxes → county creates more liens. In the last three mild recessions, lien volume rose in many states. More inventory = more choices.
2. Competition Vanishes Overnight
   Casual bidders who were “just trying it out” disappear when the market feels scary. When bidders dwindle there’s opportunity for lower bid costs, higher interest rates, thus fatter yields.
3. Interest Rates Stay Locked
   Unlike bonds or savings accounts that slash rates in a downturn, your statutory lien rate (12 %, 16 %, 18 %, whatever your state guarantees) doesn’t change. You’re earning solid returns in a 2025 economy.
4. Redemption Eventually Comes Roaring Back
   Yes, some owners take longer to pay when money is tight, but when the recovery hits, they refinance or sell at higher prices and you collect every penny plus penalty interest.

A Simple Downturn Playbook

• Keep some capital in cash during the good times (it feels boring until it doesn’t).
• When lien lists double in size and bidder count drops, deploy aggressively.
• Focus on “recovery-proof” counties: strong employment diversity, growing population, history of solid redemptions even in bad years.
• Buy bigger certificates (less work, same fixed costs).

Imagine deploying during that sweet spot. As an example, let’s assume that sweet spot’s in January, purchasing $100k worth of liens at an average 10% of face value because nobody else was bidding. By mid-2027, 90% have redeemed and pocketed over $14k in profit during the worst part of the cycle. All with minimal work compared to other investments and the potential for gaining the remaining 10% of properties.

Down markets don’t hurt tax lien investors; they reward the prepared.
Down markets create golden liens. Build wealth when others freeze.

 

 

 

 

This blog is for informational purposes only and should not be relied upon as financial or investment advice. Real estate investing carries risks, and individual results will vary. Always consult with your team of professionals before making investment decisions. The authors and distributors of this material are not liable for any losses or damages that may occur as a result of relying on this information.

Here’s the part most investors completely ignore until it’s too late: every single lien you buy already needs an exit strategy the moment you click “bid.” Without one, you’re just collecting expensive paper.

Let’s make this simple. There are really only three endgames in tax lien investing. Pick yours now (you can have a primary and a backup, but never “all of the above”).

Exit #1 – The Passive Income Machine

Goal: Live off the interest checks.
Best for: Anyone who wants true “mailbox money.”
How: Target counties with 80–95 % redemption rates and statutory rates 12–18 %.
Exit move: Do absolutely nothing except wait for the county treasurer to mail you principal + interest. Reinvest 100 % of redemptions into the next auction.
Illustrated Example: My friend Karen started with $40k in 2016. She’s never foreclosed once. Today her portfolio has redeemed ~$48k per year in interest while she travels full-time.

Exit #2 – The Discounted Deed Collector

Goal: Own real estate for pennies on the dollar.
Best for: People who eventually want rentals or big resale profits.
How: Bid in counties with lower redemption rates.

Exit move: When the redemption clock hits zero, foreclose, clean title, then rent, seller-finance, or flip.
Illustrated Example: Mark in Illinois turned $90k of liens into 18 free-and-clear rentals worth a total of $4.2 M over eight years.

Exit #3 – The Capital Recycler (Fast Flip)
Goal: Compound money quickly without ever touching a property.
How: Buy liens, wait 6–18 months, then sell the unredeemed certificate on the secondary market (or assign before foreclosure).
Exit move: Pocket 8–25 % profit and immediately redeploy capital.
Illustrated Example: Sarah in Mississippi flips $10k of liens every 9–14 months and has doubled her investable cash three times for 5 years

Your 5-Minute Exercise Right Now

Grab a sticky note and write:

“My primary exit is __________. My backup plan is __________.”
Stick it on your monitor. Every future bid must serve at least one of those two exits.

No more random bidding. From today forward, every lien has a job. Every lien needs an endgame. Know when and how to make your move.

 

 

 

This blog is for informational purposes only and should not be relied upon as financial or investment advice. Real estate investing carries risks, and individual results will vary. Always consult with your team of professionals before making investment decisions. The authors and distributors of this material are not liable for any losses or damages that may occur as a result of relying on this information.

When the economy takes a dip, most investors tighten their belts and wait for better days. But seasoned tax lien investors know that recessions can actually open the door to some of the best opportunities out there. By understanding how tax liens have performed during past downturns, you can position yourself to not only weather the storm but come out stronger on the other side.

History Has Shown: Recessions Create More Opportunities

Every major economic slowdown—from the Great Recession of 2008 to earlier downturns has shared one consistent trend: an increase in property tax delinquencies. When people face job losses or reduced income, paying property taxes often slips down the priority list. That means local governments have more unpaid taxes to recover—and more tax lien certificates to auction.

For investors, this translates to a surge in available liens and potentially less competition, especially when other investors are sitting on the sidelines. Those who understand the market cycles and stay active during recessions can scoop up high-quality liens at attractive rates.

Why Tax Liens Hold Up When Other Investments Falter

During a recession, stock markets fluctuate wildly and real estate prices can dip. Tax liens, however, remain tied to something far more stable, the legal obligation of property owners to pay their taxes. Even when home values fall, local governments still collect taxes, and investors still earn interest on those unpaid balances.

Better yet, the interest rates on tax liens don’t fluctuate with market conditions—they’re set by law. So, while bond yields or dividends might drop during a downturn, your tax lien yield stays locked in. It’s a rare corner of the investment world where you can find both predictability and strong returns, even in uncertain times.

Turning Downturns into Growth

While recessions bring uncertainty, they also clear the playing field. Investors who act strategically can find themselves in a stronger position when the economy rebounds. The interest you earn during the downturn and the properties you may acquire through foreclosure can become the foundation of long-term wealth.

Tax lien investing, when done wisely, isn’t about predicting the next economic wave—it’s about riding it with confidence. The investors who studied history and stayed consistent through the lows are the ones who benefited most when the market recovered.

So when the headlines start to sound gloomy, remember this: smart tax lien investors see opportunity where others see obstacles.

 

 

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 most powerful advantages of tax lien investing is its flexibility. You’re not limited to a single path for profit. In fact, the best investors build multiple revenue streams within the same strategy. By understanding the different ways to generate income from liens, you can turn what might seem like a slow-moving investment into a system that compounds over time.

The first and most common stream is interest income from redemptions. This is the bread and butter of tax lien investing; steady, predictable returns when property owners pay off their delinquent taxes. Depending on the state and the interest rate, those returns can easily outperform many traditional investments. Consistent reinvestment of redeemed funds keeps the cycle going and builds long-term momentum.

Then there’s the potential for foreclosure profits. While not every investor aims to take ownership of properties, some liens do move beyond the redemption period. When that happens, you can foreclose and acquire the property for only the amount of the back taxes. If it’s in good condition and located in a stable area, you can resell or “flip” it for a significant gain. Others choose to hold the property for rental income, turning a one-time lien into an ongoing source of cash flow.

A third revenue stream comes from assignment sales. This is selling your lien to another investor before redemption. This can be especially appealing if you need liquidity or if the lien has appreciated in value due to accumulated interest. In competitive markets, some investors specialize in buying and selling liens like short-term notes, creating profit without waiting through full redemption cycles.

The real magic happens when you combine these strategies with disciplined reinvestment. Each redeemed lien becomes the seed for the next. Over time, this creates a compounding effect that can steadily grow your portfolio and generate a mix of short-term and long-term income.

What makes tax lien investing unique is that you can adapt it to your personal goals. Want a predictable stream of interest? Focus on high-redemption counties. Prefer long-term upside? Target properties with strong potential for foreclosure value. Need flexibility? Use assignment sales to keep capital flowing.

Multiple income paths don’t just increase profits, they add stability. If one stream slows down, the others keep your portfolio working. The result is a system that grows stronger with every cycle, guided by strategy, patience, and reinvestment.

Tax lien investing isn’t about luck or one-off wins. It’s about building a portfolio that earns in more than one way, and keeps earning, year after year.

 

 

 

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.