Last Updated on October 23, 2025
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It’s come down to this. A Battle ROYAL!
Okay, maybe I’m being a tad dramatic, but the truth is, when it comes to investing in Tax Liens and Deeds, we are incredibly fortunate. Why? This niche in real estate offers opportunities you won’t find in most traditional businesses.
In today’s video, I dive into why tax lien and deed investing often outshines traditional ventures, not just in profitability but also in terms of flexibility and scalability. Whether you’re starting small or going big, the potential is unmatched.
Battle Royal: Why Tax Liens and Deeds Beat Traditional Business
Imagine your investing choices as a Battle Royal. In one corner is the work and expense of running a business; in the other is the quiet power of tax liens and deeds. When someone doesn’t pay property taxes, the local government places a tax lien on the property. This lien means the owner can’t sell the property until they pay the taxes. Counties sell these liens at public auctions so they can collect the money faster, and investors make money when the owner repays the overdue taxes.
Why Tax Liens and Deeds Are Special
- Easy to start: Some tax liens cost only a few hundred dollars. Starting a business usually costs much more and involves hiring staff and buying inventory.
- Good returns: The government sets the interest rate you can earn on a lien. Depending on the state, it might be as low as 4 % or as high as 36 %. You usually get your money back in six months to three years.
- Secure investment: The lien is attached to real property. If the owner fails to pay, you can start a legal process to take the property, though this is rare.
- Growing opportunity: Property taxes have gone up across the country. In 2023, taxes on U.S. single‑family homes rose 6.9 % and went up again in 2024. When more people miss payments, counties sell more liens.
Because of these points, tax lien and deed investing lets you start small, earn strong interest, and avoid day‑to‑day business headaches.
How Tax Lien Auctions Work (Simple Steps)
- Find properties. Decide if you want liens on houses, commercial buildings or empty land, then check the county’s list of unpaid taxes.
- Sign up and bid. Counties run auctions either in person or online. You either bid the interest rate down or the price up. The lowest acceptable rate or the highest premium wins.
- Do your homework. Look at the property’s condition and check for other debts. Skip run‑down or polluted places.
- Follow the rules. If you win, you must tell the owner in writing and follow state laws.
- Get paid or take over. Most owners pay back what they owe plus interest. If they don’t pay by the deadline, you may start foreclosure.
Traditional Business vs Tax Lien and Deed Investing
- Running or buying a business
It can give you an instant brand and customers, and sometimes you start making money right away. But businesses can hide debts and require a lot of money to cover employees and marketing. They also require constant attention and can suffer during economic slowdowns.
- Owning rental property
It is a more traditional form of real estate investing. It pays steady rent and can go up in value, and it helps protect against inflation. However, you deal with repairs, tenants and other issues, and it can take a long time to sell your property.
- Tax liens and deeds
Sit somewhere in between. You still benefit from real‑estate collateral but don’t manage tenants or run a business. That makes them appealing to investors who want a more passive income stream.
Quick Comparison Table
| Feature | Tax Liens & Deeds | Traditional Business |
| Start‑up cost | Low; some start at a few hundred dollars | High; money needed for staff, products and marketing |
| Profit timing | Interest paid within 6–36 months | Profits may take years to build |
| Daily effort | Mostly passive | Daily hands‑on work |
| Risk | Backed by property; avoid bad properties | Hidden debts and market cycles |
| Selling (liquidity) | Money tied up until the lien is repaid | Selling a business is slow and complex |
| Growth | Easy to expand by buying more liens | Growth is limited by time and resources |
Tips for Staying Focused
Investors need to focus on research and bidding while avoiding distractions. Studies show people now focus on one screen for only about 47 seconds before switching. Here are simple tips:
- Write down your goals and keep them where you can see them.
- Work during your best hours. Everyone has times when they think more clearly.
- Take breaks before you get tired. A short walk in nature, about 20 minutes, can reduce stress.
- Block distractions. Use apps that block websites or turn off your phone when you need to focus.
Common Questions
It’s a legal hold placed on property because taxes aren’t paid.
You buy the lien and earn interest when the owner pays back the taxes. The rate depends on the state.
After the redemption period, you can foreclose and take the property. Most owners pay before it gets to that point.
There is some risk. Avoid liens on properties that are damaged or contaminated, and always check for other liens.
A business might start earning right away, but it takes lots of work and money. Tax liens require less cash and less daily effort.
Final Thoughts
In the Battle Royal between owning a business and investing in real estate, tax liens and deeds stand out for their low entry cost and good returns. They let you invest in real estate without the headaches of tenants or employees. That said, you still need to do your homework, understand the rules and stay focused. If you do, you might find that tax lien and deed investing is a simple way to build wealth.
Let’s dive into the video above, where I break down all this and more. If you’ve been looking for ways to optimize your approach, save time, and maintain focus, this video is for you.
Talk soon,
Dustin
PS: Got questions about your tax lien and deed journey? Shoot us an email—we’re here to help!
