Last Updated on August 3, 2026
Estimated reading time: 6 minutes
Author: Jessa May Bautista
Reviewed by: Josh Blanchard
Fact Checked by: Jack Aldous
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.
Table of contents
What Is a Tax Deed?
A tax deed is a county legal document that gives the county title to a property when real estate taxes stay unpaid long enough. After that, the county sells the property to recover the unpaid taxes.
Key Takeaways
- Tax Deed Investing allows you to buy properties for as little as $50 due to tax deed sales when homeowners fail to pay taxes.
- To start, check if your state sells tax deeds, research upcoming auctions, and perform due diligence on properties.
- Investors can buy real estate at 90% below market value, leading to high returns without needing a mortgage.
- Over-the-counter (OTC) tax deeds offer lower competition and fixed pricing for beginners.
- Avoid common mistakes like skipping research, overbidding, and neglecting to clear the title to ensure a successful investment.
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.
Frequently Asked Questions
A tax deed gives the winning bidder ownership of a tax-delinquent property.
Some low-value parcels may start that low, but prices vary by county.
Not always. You may need a quiet title action or title certification.
They are properties left unsold after auction and offered directly by the county.
Check the location, access, liens, condition, property value, and local rules.
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.
