tax lien & deeds beginners guide
Tax Lien & Tax Deed Investing: A Low-Cost Way for Beginners to Start Making Money in Real Estate
What It Is:
·Tax Lien Investing:When a property owner fails to pay property taxes, the county can sell atax lien certificate to investors. You’re essentially paying the taxes in exchange for the right to collect the debt—plus interest(often 8–25%).
·Tax Deed Investing:In some states, instead of selling the lien, the county sells theactual propertyat auction. You can buy real estate for pennies on the dollar—sometimes for just the back taxes owed.
Why It's Great for Beginners with Limited Capital:
✅ Requires low upfront investment(some tax liens start at a few hundred dollars)
✅ Can earn high returns or even acquire property
✅ No tenants or property management needed (for liens)
✅How to Get Started:
1.C Choose your strategy:Tax lien (earning interest) or tax deed (buying property).
2.R Research counties that hold regular tax sales (many offer online auctions).
3.R Review auction lists and research properties thoroughly—check location, value, and legal status.
4.R Register to bid and fund your account.
5.B Bid smart: Don’t overpay. Stick to your budget.
Win a lien? Wait for the redemption period—if the owner pays, you get your money + interest.
Win a deed? You own the property outright!
➡️The Investor's $116,500 Tax Deed Profit
An investor named Mark was looking for his next big deal. He found a rundown house with thousands of dollars in back taxes. He paid the $8,500 tax bill, and when the owner failed to redeem it, Mark received the deed. After putting another $25,000 into renovations, he sold the home for $150,000, turning a total investment of $33,500 into a $116,500 profit.
💰Turn small capital into big returns through smart, strategic tax sale investing.
🚀Start today—find your first tax lien or deed auction and grow your wealth with less risk and more reward!
