Last Updated on September 7, 2025
Table of contents
- 15 Must-Know Tips for Tax Liens & Deeds Investing
- Power Tips for Tax Lien & Deed Investing
- 1 | Make a thoughtful first impression
- 2 | Follow up politely
- 3 | Pl an your property‑scouting route
- 4 | Bring the right tools
- 5 | Spot signs of distress
- 6 | Record and research
- 7 | Keep emotions in check
- 8 | Conduct a full title search
- 9 | Check outstanding taxes and liens
- 10 | Calculate the total investment
- 11 | Insure vacant properties
- 12 | Prevent basement flooding
- 13 | Understand quiet title actions
- 14 | Know liens versus deeds
- 15 | Diversify and be patient
- Tax lien vs. tax deed investing
- Frequently asked questions
15 Must-Know Tips for Tax Liens & Deeds Investing
Are you ready to supercharge your investing game? We’ve got 15 POWER tips to add to your Tax Liens & Deeds toolbox. Whether you’re new or experienced, these insights will make a huge difference in how you approach this exciting field.
This video is slammed with great content… Here’s a taste of what you’ll learn:
Power Tips for Tax Lien & Deed Investing
Tax lien certificates pay investors a fixed return on unpaid taxes and are redeemed by most owners; rates range from 4 % to 36 % depending on the state. Tax deed auctions sell entire properties at deep discounts when taxes go unpaid. This video shares practical advice; the 15 concise tips below build on that guidance with documented facts.
1 | Make a thoughtful first impression
Send kind, informative letters to distressed owners and follow up with a phone call or visit. Real estate coaches say empathy and transparency improve the chances of a cooperative sale.
2 | Follow up politely
Remind the homeowner of your message and offer to answer questions. A friendly follow‑up shows you are committed to solving their problem, not just hunting for a deal.
3 | Plan your property‑scouting route
When “driving for dollars,” pick neighbourhoods where values are rising and map a route ahead of time to avoid backtracking.
4 | Bring the right tools
Carry a notebook or app to record addresses, a phone charger, water and a reflective vest; preparation lets you focus on spotting opportunities.
5 | Spot signs of distress
Look for tall grass, boarded windows or piled‑up mail; these signs suggest vacancy and a possible motivated seller.
6 | Record and research
Record addresses and take photos. Afterwards, use county or GIS sites to check ownership and taxes, then contact the owners using the empathetic approach above.
7 | Keep emotions in check
Avoid reacting to short‑term market swings or overtrading. Stick to a written plan and long‑term goals, reviewing them regularly to prevent emotions from derailing your strategy.
8 | Conduct a full title search
Before bidding on a deed, verify ownership and look for mortgages, judgment liens, easements or covenants. This due diligence prevents expensive surprises.
9 | Check outstanding taxes and liens
Review tax records and search for super‑priority liens like county assessments. Some liens, such as federal claims, survive the sale, so add them to your calculations.
10 | Calculate the total investment
Include the purchase price, unpaid taxes, possible penalties, surviving liens and repair costs. Walk away if the numbers don’t meet your return goals.
11 | Insure vacant properties
Vacant property insurance covers fire, vandalism and theft, and may include liability protection. Premiums depend on location, condition and security measures.
12 | Prevent basement flooding
Avoid costly water damage by cleaning gutters, adding downspout extensions and sloping ground away from the foundation. Seal basement cracks and consider backflow preventers to stop sewer backups.
13 | Understand quiet title actions
A quiet title action resolves ownership disputes after a tax deed purchase. It can take 30 days to over a year and cost US$1,500–$5,000. Some investors use specialist firms to secure an insurable title.
14 | Know liens versus deeds
Tax lien buyers earn fixed interest, Arizona pays up to 16 % and Florida up to 18 %—and most liens are redeemed. Tax deed buyers get the property at a discount but must handle repairs and surviving liens.
15 | Diversify and be patient
Spread investments across states and decide whether you prefer passive liens or hands‑on deeds. Start small, reinvest profits and keep learning; patient, informed actions build success.
Tax lien vs. tax deed investing
| Aspect | Tax lien investing | Tax deed investing |
| What you buy | A lien on unpaid property taxes | The property itself at auction |
| Return | Earn a high interest rate (4 %–36 %); most liens are redeemed | Potentially large profit from reselling property purchased below market value |
| Risk and workload | Lower risk and little management; government‑backed certificate | Higher risk; buyer is responsible for repairs, surviving liens and insurance |
| Investor profile | Suits passive investors with smaller budgets | Fits entrepreneurs seeking hands‑on projects and bigger returns |
Frequently asked questions
Redemption periods vary by state from a few months to several years; owners may repay taxes and interest, or if not, you can foreclose.
Tax lien certificates are secured by real estate and backed by law. Most owners redeem them, so you typically receive your money plus interest. Invest only what you can afford and learn local rules.
Look for low‑priced liens in counties with small minimum bids or partner with other investors. Reinvest returns into more certificates or small deeds to build your portfolio.
By applying these 15 power tips, you can build a disciplined approach to tax lien and tax deed investing. Ethical homeowner interactions, thorough due diligence, and patience help you earn high returns while managing risk.
PS: Did you like today’s video? It’s always good to have fun, even when life is CRAZY busy…. What are some ways you can commit to having fun, getting out there, and enjoying life? Shoot me an email and let me know!
