Have you ever bought a property for $50? Or $500? In today’s video, let’s chat about Tax Deeds and how you can find property for as little as $50!
Tax deed investing is one of the best ways to get real estate at a fraction of its market value. Imagine buying properties for as little as $50—free and clear. It may sound too good to be true, but this strategy has been around for centuries and continues to create wealth for investors.
If you’re looking to break free from the 9-to-5 grind or build long-term wealth, tax deed investing could be the opportunity you need. Let’s break down how tax deed investing works, what makes it different from tax lien investing, and how you can start buying properties for 90% below market value.
What Is Tax Deed Investing?
A tax deed sale happens when a homeowner fails to pay their property taxes for several years. Instead of issuing a lien (like in tax lien states), the county auctions off the property itself to recover unpaid taxes. The winning bidder gets the deed, meaning they now own the property free and clear—without needing to pay off a mortgage.
This method allows investors to buy homes, land, and commercial properties for a fraction of their actual worth.
How to Start Tax Deed Investing
Step 1: Find Out If Your State Is a Tax Deed State
Not all states sell tax deeds—some sell tax liens instead. If you live in a tax lien state, you may need to travel to a nearby tax deed state to invest.
Some states, like Texas and Georgia, operate as hybrid models, meaning they have a short redemption period even after you win the auction.
Step 2: Research Upcoming Tax Deed Auctions
Once you confirm that your state (or a neighboring one) sells tax deeds, check the county website for upcoming tax deed auctions. These auctions happen online or in person and list properties available for bidding.
Many counties publish a list of properties that did not sell at auction—these are called over-the-counter (OTC) tax deeds and can often be purchased without bidding against anyone.
Step 3: Perform Due Diligence
Before bidding on any property, make sure to research the property thoroughly.
- Verify property details (location, size, zoning)
- Check for additional liens (some debts may still apply)
- Visit the property if possible (condition matters)
- Understand market value (know what it’s really worth)
Skipping due diligence could lead to costly mistakes, such as buying landlocked property or one with significant legal issues.
The Benefits of Tax Deed Investing
- Buy real estate for pennies on the dollar
- No mortgage required
- High return potential
- Quick process
Many tax deed properties are bought at 90% below market value, meaning you can resell them for a huge profit or rent them out for steady cash flow. Unlike tax liens, where you wait for the owner to pay up, tax deed investors take ownership immediately in most states.
What Happens After Buying a Tax Deed Property?
Once you win a tax deed at auction, the property is yours, but there’s one thing to keep in mind.
Most tax deed sales do not come with a guaranteed title. You may need to clear the title before reselling to a traditional buyer or securing financing.
How to Clear the Title on a Tax Deed Property
- Wait Out the Statutory Period – Some states automatically clear titles after 1-3 years.
- Use a Quiet Title Action – This legal process establishes you as the rightful owner.
- Get Title Insurance – Some companies offer title certification services for tax deed properties.
If you’re planning to flip properties quickly, you may need to invest $1,000-$2,000 to clear the title properly.
Over-the-Counter (OTC) Tax Deed Investing
If a property doesn’t sell at auction, it may become available over the counter. This means you can buy it directly from the county without bidding wars.
- Lower competition – No need to fight other bidders.
- Fixed pricing – Prices often start at the minimum bid (unpaid taxes).
- Great for beginners – A simple way to get started in tax deed investing.
To buy OTC tax deeds, call the county tax collector’s office and ask for the list of available properties.
Common Mistakes to Avoid in Tax Deed Investing
- Not researching the property – Some properties may be landlocked or have costly issues.
- Overbidding at auctions – Stick to a pre-set budget to avoid overpaying.
- Skipping title clearing steps – If you don’t clear the title, you may struggle to resell.
- Expecting instant success – You may need to attend several auctions before winning a great deal.
- Not having an exit plan – Know if you want to flip, rent, or hold the property before buying.
Tax deed investing is one of the best-kept secrets in real estate. Whether you’re looking to buy land for cheap, flip houses for profit, or build long-term wealth, this strategy offers incredible opportunities.
The key to success is staying consistent, doing your research, and attending multiple auctions.
Ready to start investing?
Download our FREE Tax Deed Investing Guide or book a consultation to get expert guidance on your first deal.
