Are Tax Liens and Deeds Really Profitable?

dustinhahn September 10, 2018

Last Updated on February 19, 2025

Is Tax Liens and Deeds Investing a real thing?

Can you really make money with it? This might be one of the questions you’re asking after hearing about this strategy.

And the answer is—yes, it’s a real thing! I’ve seen so many people dive into this type of investing and get great results.

What Makes Tax Liens and Deeds Investing Profitable?

This kind of investing is backed by the US government. Counties take control of properties with unpaid taxes and sell them to recover their money. It’s a straightforward system that gives you a chance to earn.

How Does It Work?

Tax Lien and Deed Investing can bring returns of 10-25%, depending on the county. When you buy a tax lien at an auction, the property owner must pay you back what you paid, plus interest. Each county sets its own rules, so it’s important to know the specifics.

Why Do Counties Sell Tax Liens and Deeds?

Counties rely on property taxes to fund schools, police, firefighters, and other essential services. Selling tax liens or deeds helps them recover these funds. This creates a unique opportunity for investors like you to step in and earn while helping local governments stay funded.

The Benefits of Tax Lien and Deed Investing

One of the best things about this strategy is that it doesn’t always require a huge investment upfront. But like any other business, it still takes effort, learning, and time to succeed.

My Advice for Getting Started in Tax Liens and Deeds

If you’re ready to jump into Tax Lien and Deed Investing, here’s what I recommend:

Take the time to learn everything you can about how it works.
Understand the specific rules and processes in your chosen counties.
Start small and build your confidence with each auction you attend.

Why It’s Worth the Effort?

This type of real estate investing isn’t just profitable—it’s also a great way to grow your knowledge and skills. Even if it takes some time to get your first win, the results can be worth every bit of effort you put in.