Frequently Asked Questions About Tax Lien Investing

A tax lien certificate is a legal claim against a property whose owner has failed to pay property taxes. When you purchase a tax lien certificate at a county auction, you pay the delinquent taxes on behalf of the property owner. In return, you earn interest — often between 8% and 36% annually — when the owner redeems (pays back) the taxes. If the owner doesn't redeem within the redemption period, you may be able to foreclose and acquire the property.

You can start investing in tax liens with as little as a few hundred dollars, depending on the county and state. Some tax lien certificates are available for under $500. Our programs teach you how to identify the best opportunities regardless of your budget.

In tax lien states, you purchase the lien (the debt) and earn interest when the owner redeems. In tax deed states, you purchase the property itself at auction, often at a significant discount. Some states are hybrid, offering both. Our curriculum covers strategies for all 50 states.

All investing carries some risk, but tax liens are considered one of the safer real estate investments because they're backed by the property itself and the interest rates are set by law. The main risks include properties with environmental issues or those worth less than the lien amount. Our coaching program teaches you exactly how to perform due diligence to minimize these risks.

Yes! Many counties now hold their tax lien auctions online, making it possible to invest in tax liens from anywhere in the country. Our program teaches you how to research and invest in the most profitable states and counties remotely.

No prior experience is needed. Our programs are designed to take complete beginners from zero knowledge to confident investors. We provide step-by-step training, research tools, and ongoing coaching support throughout your journey.

County governments publish tax sale lists ahead of their auctions, typically on the county treasurer or tax collector's website. Auctions happen at different times throughout the year depending on the state and county. Our training teaches you exactly where to look, which counties offer the best opportunities, and how to get on notification lists so you never miss a sale.

If the property owner fails to redeem (pay back the taxes plus interest) within the statutory redemption period — which varies by state from 6 months to 3 years — you may have the right to foreclose on the property. This means you could acquire a property worth far more than your original investment. Our program walks you through the foreclosure process step by step.

Yes, you can invest in tax liens using a self-directed IRA (SDIRA). This allows your returns to grow tax-deferred or tax-free, depending on the type of IRA. Many of our students use this strategy to accelerate their retirement savings. We cover self-directed IRA investing in our training programs.

The timeline depends on the state's redemption period. In some states, property owners have as little as 6 months to redeem, meaning you could see your return within half a year. In other states, the redemption period can be up to 3 years. Many experienced investors build a portfolio across multiple states and redemption timelines to create a steady stream of returns.