Last Updated on September 9, 2025
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If there’s one thing I’ve learned in my 13+ years in real estate, it’s this: you can’t have EVERYTHING you want—at least not all at once. The secret to success lies in understanding this limitation and mastering the art of prioritizing what truly matters.
Let me explain:
Back when I was just starting out in my early 20s, I had big dreams. But those dreams required serious work, sacrifice, and focus. I spent countless late nights building my tax lien & deed business, missing social events, and even stepping away from relationships that weren’t aligned with my goals. It wasn’t easy, but I knew the trade-off would be worth it.
Today, I can confidently say that I’ve achieved most of what I set out to accomplish—and it’s all because I embraced the secret to success early on. That secret? Learning to say no to short-term wants to achieve long-term gains.
Secret to Tax Sale Success: Sacrifice and Simple Steps
Many people want to invest in real estate but do not want to manage tenants. At a tax sale, the government auctions unpaid property taxes as a tax lien or a tax deed. Investors pay the overdue taxes and earn interest or, sometimes, end up with the property.
The Secret to Tax Sale Success is to focus on long‑term goals and make small sacrifices today. Dustin Hahn teaches that you must choose what matters and stay disciplined. This article explains tax sales in simple words and shows how patience, research and planning can lead to success.
Why Sacrifice Is the Secret to Tax Sale Success
Like any good business, tax sale investing requires trade‑offs. Instead of watching television or buying a new gadget, you might spend evenings reading county lists and saving for your first purchase. Learning the rules in each state and checking property records takes time, but those daily choices build the foundation for success.
Stay Focused and Committed
- Set goals. Choose between liens or deeds and pick counties and budgets that fit your plan. Do not bid on everything.
- Learn the basics. A tax lien gives you a claim to unpaid taxes, while a tax deed eventually gives you the property. Knowing the difference helps you avoid mistakes.
- Be disciplined. Spend time studying and saving. Avoid distractions so you can build your knowledge and your budget.
How Tax Sales Work
At a tax sale, you buy someone else’s unpaid property taxes. You can purchase either a tax lien certificate or a tax deed.
With a tax lien certificate, you pay the overdue taxes and receive the right to collect that amount plus interest. The interest rate is set by the state and can be very high. If the owner repays the taxes before the deadline, you receive your money and interest. If they fail to repay, you may have the right to foreclose, but this is rare.
With a tax deed, you pay the taxes and, after any waiting period ends, you become the owner of the property. Deeds can offer bigger profits but also require more money and work. You may need to fix or sell the property and deal with tenants or repairs.
Rules differ widely. Some states sell only tax liens, some sell deeds, and others offer both. Always check your state’s laws before bidding.
Tax Liens vs. Tax Deeds (Table)
| Investment type | What you buy | Returns and risks |
| Tax lien certificate | A claim on unpaid taxes; you do not own the property | Interest rates are set by law and can be high. Your upfront cost is often low but you risk loss if the owner never pays. |
| Tax deed | Ownership of the property after paying the taxes | You may earn more by selling or renting the property, but you need more capital and must handle repairs and other costs. |
Simple Steps to Tax Sale Success
- Learn how the auction works.
Find out if the sale is online or in person and how bids are placed so you do not overpay.
- Research each property.
Check the property’s value, condition and any other liens to judge risk.
- Plan your approach.
Choose between earning interest from liens or owning property through deeds, and set a budget. Start small to test your plan.
- Keep learning and networking.
Laws change, so stay informed. Attend seminars, watch training videos and connect with other investors to find deals and avoid mistakes.
Beginner Tips
- Know the redemption period and state rates. Every state sets its own deadlines and maximum interest rates. Invest in places where the terms match your goals.
- Budget for extra costs. If you receive a deed, you may need money for repairs, legal fees and other expenses.
- Expect interest, not ownership. Most lien buyers simply collect interest. Treat property ownership as a bonus, not a guarantee.
Frequently Asked Questions
A tax lien is a claim on a property for unpaid taxes. It stops the owner from selling or refinancing until the debt is cleared.
You pay the overdue taxes and earn interest when the owner repays you. If the owner does not pay before the redemption period ends, you might foreclose, but this is uncommon.
A tax deed gives you the property after you pay the taxes and wait out any redemption period. A lien only gives you the right to collect interest, not ownership.
There is a risk because the owner might not pay, and property values can fall. However, you can start with a few hundred dollars by buying small liens. Deeds cost more, but you can build up gradually.
Conclusion
The Secret to Tax Sale Success is simple but demanding. It requires patience, sacrifice and a commitment to learning. By focusing on long‑term goals, understanding how tax liens and deeds work and doing careful research, you can invest with confidence. Over time, these choices can lead to passive income and, in some cases, property ownership. The road may be slow, but the opportunity for financial freedom makes the journey worthwhile.
Final Thoughts
The secret to success is simple but not easy. It requires commitment, focus, and a willingness to let go of temporary comforts for lasting rewards. Ready to take the next step? Watch the video and let’s make today count!
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