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 an investor purchases a tax lien certificate at a county auction, they pay the delinquent taxes on behalf of the property owner. In return, they earn interest — often between 8% and 24% annually — when the owner redeems (pays back) the taxes. If the owner doesn't redeem within the redemption period, the investor may be able to foreclose and acquire the property.

A person 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 someone how to identify the best opportunities regardless of budget.

In tax lien states, we can purchase the lien (the debt) and earn interest when the owner redeems. In tax deed states, we 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 risk. Tax liens are secured by an interest in the underlying property, and interest rates are set by state statute — but outcomes depend on factors like property condition, environmental issues, and local market values. Some investors view tax liens as relatively lower-risk compared to other real estate strategies, but thorough due diligence is essential. Our coaching program teaches investors how to evaluate properties and manage risk.

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 investors how to research and invest in counties that offer the best opportunities remotely.

No prior experience is needed. Our programs are designed for complete beginners starting from zero knowledge. We provide step-by-step training, research tools, and ongoing coaching support throughout the learning 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 investors exactly where to look, which counties offer the best opportunities, and how to get on notification lists so they 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 — an investor may have the right to foreclose on the property. This means the investor could acquire a property worth far more than the original investment. Our program walks students through the foreclosure process step by step.

Investors may be able to use a self-directed IRA (SDIRA) to invest in tax liens. This allows any returns to grow tax-deferred or tax-free, depending on the type of IRA. Some of our students have successfully used this approach. We encourage our students to first speak with their financial advisors before using any retirement accounts for investing purposes.

The timeline depends on the state's redemption period. In some states, property owners have as little as 6 months to redeem, meaning the investor may receive their return within that timeframe. In other states, the redemption period can be up to 3 years. Some experienced investors build a portfolio across multiple states and redemption timelines to diversify their cash flow timing.