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Beginner Tax Lien Investing (Step By Step)

Last Updated on March 5, 2025

Want to get started with Tax Liens? Watch this video! Learn how to get 18-36% returns on your investment and buy property for as little as $500 with Tax Liens & Deeds.

How to Get Started Today

Looking to earn 18% to 36% interest with tax lien investing as a beginner? It’s easier than you think. Follow this simple step-by-step guide to start investing today.

Step 1: Call Your County’s Tax Office

Instead of searching online for hours, call the county tax assessor’s office and ask:

  • When and where is the tax lien auction?
  • What interest rate is offered?
  • How do I register to bid?
  • What payment methods are accepted?
  • Where can I find the list of available tax liens?

Many counties still provide auction lists by mail, so contact them to join their mailing list.

Step 2: Check If the Auction Is Online

Many counties now hold auctions online, meaning you can bid on tax liens from anywhere. Some smaller counties still have in-person auctions, which often have less competition and better deals.

Step 3: Ask About Unsold Tax Liens

Some tax liens fail to sell at auction, allowing beginner investors to purchase them immediately as Over-the-Counter (OTC) tax liens.

Why OTC liens are great:

  • No bidding wars
  • Immediate ownership
  • Full interest rate applies from day one

Step 4: Understand the Foreclosure Process

If the property owner doesn’t pay, you may be able to foreclose and take ownership. Ask your county about:

  • Redemption period length
  • Foreclosure process
  • How many tax liens were sold last year

Counties with many liens and few bidders offer the best opportunities.

Final Tips for Beginners

  • Start with smaller counties for better deals
  • Research each lien before buying
  • Stay organized with deadlines and payments
  • Consider watching an auction before bidding

Get Started Today

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