Last Updated on September 9, 2025
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Early one morning, we watched a replay of a figure skating event from the Winter Games in Sochi. The American skater delivered a clean performance yet was visibly shocked when the judges’ scores came up. She thought she deserved more. The video reminded us of our own experiences investing in tax liens and deeds: even when we do our research, the results may be very different from what we expect.
Why do outcomes sometimes surprise us?
Unexpected results are part of life. In tax lien and deed investing, we pick properties carefully and try to reduce risk. Yet deals can still go wrong—owners may redeem liens sooner than planned, repair costs can soar, or market conditions can shift suddenly. This uncertainty can drain our motivation if we attach our self‑worth to a single outcome. Recognizing that external events are unpredictable helps us focus on what we can control.
Sometimes we get discouraged when a deal doesn’t perform as expected. Instead of thinking that one setback defines us, remember why we started investing in the first place. Our goal is to build long‑term wealth and freedom, not win every auction. Like the skater who believed she deserved better, we may feel frustrated when circumstances change. Accepting that uncertainty is inherent in investing can reduce stress and encourage us to keep improving our process.
How can tax lien investors prepare for uncertainty?
The best defence against unexpected outcomes is a good risk‑management plan. Risk management means identifying both the downsides and the rewards of an investment. It requires balancing risk and reward and using strategies such as diversification and loss prevention. Here are core techniques:
- Avoidance: Skip deals that don’t meet your criteria. If a property has unknown liens or a complicated title, walk away.
- Retention: Accept some risk for the chance of higher returns. In tax deed investing, this might mean bidding on properties with minor repair issues.
- Sharing: Partner with others. Joint ventures spread risk and allow you to learn from experienced investors. Our article on partnering with experienced investors explains how to evaluate such partnerships.
- Transferring: Use legal tools such as insurance or company structures to limit liabilities.
- Loss prevention and reduction: Diversify across counties and property types. Don’t tie all your capital to one sale.
In addition to these general methods, specific tax deed research is critical. Start by downloading the county auction list and building a shortlist, then scout properties in person and set a firm budget. Check your state’s redemption periods; for instance, Florida gives owners at least two years to redeem while Texas allows only about six months. Avoid very low‑value properties that need major repairs. For more detail, see our guide on picking properties for tax deed sales and our step‑by‑step tax deed research tips. Doing your homework before bidding helps you avoid unpleasant surprises.
common surprises and responses
| Surprise | Response |
| Owner redeems the lien early | Diversify, reinvest |
| Property has unknown liens | Do a title search |
| Repair costs are higher | Set a bigger reserve |
| Auction rules change | Check county notices |
| Market slows down | Hold for rent |
What should you focus on when investing?
You can’t control market moves, tax law changes, or job security. What you can control is your strategy, savings rate, and asset allocation. A Forbes article notes that diversification helps limit portfolio swings and that avoiding extreme concentrations in single stocks or single assets is crucial. The same logic applies to tax lien investing: spread your bids across different counties and property types, and keep enough cash on hand for unexpected opportunities.
Here are things we control versus those we can’t:
- Under our control: Research, budget, bidding strategy, diversification, education.
- Not under our control: Market prices, redemption timing, economic policy, other bidders’ actions.
By focusing on research and preparation, we become less dependent on outcomes. You can decide how much to bid, when to walk away, and how much to set aside for repairs. You can also control your response to setbacks. Building an emergency fund and keeping some capital uncommitted helps you handle unexpected costs without panic. In short, invest energy in actions that move the needle and don’t waste time worrying about the uncontrollable.
How to stay motivated when deals go wrong
Self‑motivation comes from knowing who you are and why you invest. When a deal fails, remind yourself that setbacks are temporary and part of the learning process. Here are simple habits that keep us moving forward:
- Remember your purpose
Are you investing for financial freedom, education for your children, or to build generational wealth? Keeping that reason front and centre helps you bounce back after a loss.
- Track small wins
Celebrate each successful bid, each lesson learned, and each improvement in your research. This builds confidence over time.
- Learn continuously
Read books, watch videos, attend webinars, and connect with other investors. Our mindset article explains why willingness to learn, problem‑solving, and personal growth are key to long‑term success.
- Have a support system
Partner with other investors or join a community. Shared experiences provide encouragement and accountability.
FAQs
No. While tax lien interest rates can be attractive, property owners can redeem liens sooner than expected. Always research redemption periods and potential returns.
You receive the principal plus interest, but you may miss out on acquiring the property. Diversify your investments so one early redemption doesn’t affect your plans.
Some counties require only a few hundred dollars to bid. However, you must have certified funds ready if you win. Build a reserve to cover bids, fees, and potential repairs.
Yes. Start small, focus on due diligence, and consider partnering with experienced investors. Our free mini‑course and consultation call can help you get started.
Final thoughts and next steps
The surprising score at Sochi reminded us that even with preparation, outcomes can be different from our expectations. In tax lien and deed investing, uncertainty is part of the process. By focusing on research, risk management, and self‑awareness, we can handle unexpected turns and continue moving toward our goals. You don’t need perfect certainty to be a successful investor; you need a solid plan, the right mindset, and a willingness to adapt.Ready to learn more?
Download our free mini course and discover how to buy tax lien & deed properties for pennies on the dollar. If you’d like personalized guidance, book a free call with us—we’ll walk you through your first deal step by step. You can also explore our other resources on picking the right properties, researching tax deeds and partnering on deals. We’re here to help you build your knowledge and confidence in this exciting investment niche.
