Recalibrating Your Tax Lien Strategy: How to Plan for a Stronger Investment Year

1/6/2026 12:00:00 AM

Every tax lien investor hits a wall eventually. You've been bidding on the same counties, using the same research process, checking the same boxes, but suddenly, the results aren't what they used to be. Redemptions take longer. Bids get more competitive. Or maybe you're just not feeling the momentum you had six months ago.

What got you to this point won't necessarily get you to the next level. The strategy that worked when you were placing your first few bids needs to evolve as you gain experience, as markets shift, and as your goals expand. Recalibration isn't a sign of failure; it's a sign of growth.

When "More of the Same" Stops Working

Most investors don't realize they need a strategy reset until the cracks start showing. Maybe you're winning fewer auctions because competition has heated up in your preferred counties. Maybe you're winning too many liens in properties that don't fit your actual goals. Or perhaps your portfolio has grown, but your time and systems haven't kept pace.

The reality is that tax lien investing changes as you move through it. Early on, you're learning mechanics: how auctions work, what redemption means, how to read a county list. But after a few cycles, the game shifts. You're no longer just learning the rules; you're optimizing within them.

Looking Back to Move Forward

Start by pulling up your last six to twelve months of auction activity. Not to judge yourself, but to spot patterns. Which liens redeemed quickly? Which ones are still sitting? Did you overbid on properties you later regretted?

Don’t beat yourself up over missed chances. Simply Identify what's actually working versus what you thought would work. Write down three observations. Maybe it's "I keep avoiding commercial properties, but the two I tried redeemed faster than residential." Or "I'm spreading myself too thin across seven counties when I really only understand three."

Setting Benchmarks That Guide Better Bids

A recalibrated strategy needs guardrails. These are the practical benchmarks that keep you disciplined when auction adrenaline kicks in.

Maximum bid as a percentage of assessed value: maybe it's 70%, maybe it's 50%. Whatever it is, write it down and stick to it.

Target redemption window: are you comfortable with 3-year redemptions, or do you need cash cycling faster?

County familiarity threshold: how many successful bids in a county before you'll expand there?

These benchmarks don't limit you; they free you. They take the guesswork out of bidding and replace it with confidence.

Keeping Emotion Out of the Equation

The biggest reason strategies drift is emotion. You see a property that "feels" like a deal. Someone else is bidding, so you bid higher. You're on a losing streak, so you chase a marginal lien just to get a win.

A defined strategy acts as a circuit breaker. When emotion tries to take over, your written plan steps in. You glance at your maximum bid, check your benchmarks, and either proceed with clarity or walk away without regret.

That's the difference between reactive investing and intentional investing.

Stronger bids start with a stronger plan. And stronger plans start with honest reflection.

This blog post is for informational purposes only and should not be relied upon as financial or investment advice. Real estate investments carry risk, and individual results will vary. Always consult with your team of professionals before making investment decisions. The authors and distributors of this material are not liable for any losses or damages that may occur as a result of relying on this information.