Last Updated on August 27, 2025
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Why Mindset Matters in Tax Lien & Tax Deed Investing
Tax lien and tax deed investing can be a great way to make money. When people don’t pay their property taxes, local governments sell tax lien certificates. These certificates show that the investor has a claim on the property. Investors pay the unpaid taxes and can earn interest. This interest usually ranges from 8% to 36%, depending on where you are. In some places like Florida and Arizona, the rates can even go over 18%.
Many people think a lot about their bidding strategies and how much money they can make. But getting your mind ready is just as important. If you don’t have the right attitude, you might feel sad when faced with tough competition. You could give up after a setback or make quick, unwise bids. The video (Tax Lien TV Ep 31) talks about this mental part of investing. Below, you’ll find a simple summary and some helpful steps to get your mind set for success
What Is a Tax Lien Certificate?
A tax lien certificate is like a ticket that says someone owes money for not paying their property taxes. When you buy this ticket at an auction, you pay the unpaid taxes for the homeowner. After that, the homeowner has a certain amount of time—usually one to three years—to pay you back. They need to give you the tax amount plus some extra money, which is called interest. If they don’t pay you back in time, you might be able to take the property from them through foreclosure. Many people think buying tax liens is a safe bet since the government backs them. Still, it’s important to do your homework before investing. Make sure you understand what you’re getting into
Mental Strategies for Success
The video talks about how having the right attitude and sticking to it are really important for tax-lien investing. Josh and Cory share their own stories to show how staying focused matters in real life
- Learn from obstacles rather than quitting. When a county auction in Florida got too busy and didn’t make enough money, the team started to look at nearby counties. They found better chances there. The main point is that problems happen to everyone. Instead of giving up, use those problems to make a change and try something new
- Focus on solutions, not problems. They talk about how county websites can be really confusing. They also share how trying to use video-editing software made them really mad. Instead of getting stuck on their anger, they choose to think about how to fix the problem. Over time, this focus on finding solutions becomes something they do all the time..
- Stay physically and mentally sharp. On a really hard auction day that lasted 16 hours, they decided to go to the gym. They ran on the treadmill for just ten minutes. This quick workout helped them feel calm. When they returned, their minds were clear. They also suggest simple things like walking or writing in a journal to help with stress.
- Use mindfulness and hobbies to maintain balance. One person suggests using the mindfulness app Headspace for daily meditation. They also enjoy hobbies like photography and playing a travel-sized guitar. They bring their guitar with them when they go to places like Houston, Philadelphia, and Florida. These fun activities help them relax between auctions. Keeping these hobbies helps them stay calm while traveling for tax lien and tax deed sales
- Adapt to market changes. Many counties, especially in Florida, have liens and deeds. But some counties have more competition than others. Investors should look at different counties and change their plans if the competition gets tough. Being ready to switch counties or even states is really important.
- The mental game applies beyond investing. They show people how these simple habits can help in daily life. You can use them when you are learning something new, like software, or when you face personal issues. Keeping a positive attitude can make a big difference. Staying active and following your interests can really help you succeed
Step‑by‑Step Mindset Strategy
How to Prepare Your Mind for Tax Lien & Tax Deed Investing Success
- Educate yourself about local laws
Each state and county sets its own rules for tax liens and deeds. Before bidding, learn the redemption period, maximum interest rate and foreclosure process in your target area.
- Start small and build confidence
The PropertyOnion guide recommends buying one or two certificates initially to familiarise yourself with the process. Success builds confidence and reduces the emotional pressure of large initial bets
- Perform thorough due diligence
Not all properties are equal; research the neighbourhood, market value, property condition and other liens. A sound analysis prevents you from overpaying or acquiring an undesirable property.
- Explore alternative counties when competition is high
If an auction in one county is overly competitive, follow the presenters’ example and examine surrounding counties. Different markets may have lower competition and better returns.
- Set realistic goals and stay consistent
Decide how many deals you want to pursue per month and stick to your plan. Consistency beats sporadic bursts of activity.
- Manage stress with healthy habits
Incorporate exercise, meditation or journaling into your routine. The video shows that a simple workout can calm nerves and refocus your energy. Consider mindfulness apps like Headspace and creative outlets such as photography or playing music to stay balanced.
- Learn from mentors and peers
Follow experienced investors (e.g., Dustin Hahn, Tax Lien Code or Ted Thomas). Joining communities or scheduling a free mentorship call can shorten your learning curve.
FAQ
If the owner fails to redeem within the statutory redemption period, the investor may have the opportunity to foreclose and acquire the property. Laws vary, so check your state’s regulations.
You can purchase some tax lien certificates for as little as $50, but to see meaningful returns many investors start with $5,000–$10,000.
Tax lien investing is considered relatively safe because you’re purchasing a claim backed by local government. However, due diligence is essential, and there is always a risk the property may have problems (environmental issues, other liens, etc.).
Yes. You can invest in tax liens in other states, but you must familiarise yourself with their specific laws and procedures. Many counties now offer online auctions, which allow out‑of‑state investors to participate.
Returns vary widely. Interest rates can range from 8 % up to 36 % depending on the state. Bids at auction often reduce the effective rate, so realistic returns are often in the mid‑single to low‑double digits. Higher rates are available in states like Florida and Arizona.
What happens if the property owner never pays their taxes?
If the owner fails to redeem within the statutory redemption period, the investor may have the opportunity to foreclose and acquire the property. Laws vary, so check your state’s regulations.
How much money do I need to start investing?
You can purchase some tax lien certificates for as little as $50, but to see meaningful returns many investors start with $5,000–$10,000.
Are tax liens safe?
Tax lien investing is considered relatively safe because you’re purchasing a claim backed by local government. However, due diligence is essential, and there is always a risk the property may have problems (environmental issues, other liens, etc.).
Can I invest in tax liens outside my home state?
Yes. You can invest in tax liens in other states, but you must familiarise yourself with their specific laws and procedures. Many counties now offer online auctions, which allow out‑of‑state investors to participate.
What kind of returns can I expect?
Returns vary widely. Interest rates can range from 8 % up to 36 % depending on the state. Bids at auction often reduce the effective rate, so realistic returns are often in the mid‑single to low‑double digits. Higher rates are available in states like Florida and Arizona.
Conclusion
Getting ready for tax lien and tax deed investing is just as important as knowing the rules. You need to do your homework on local laws. It’s smart to be careful and stick to your plan. Starting out small is a good idea. Make sure you check everything carefully, and remember that keeping at it helps you succeed. If you want some personal help, you can set up a free call with us. Our team knows about auction dates, interest rates in different states, and tips for the right mindset. We’re here to help you do well
