What is Tax Deed Investing?
Tax Deed investing offers immediate ownership of the property. They are offered for sale at a public auction conducted by the county or by a company representing the county.
The opening bid is generally just the back taxes and any foreclosure expenses. Because you get the property every time when purchasing Tax Deeds, potential profits can be far greater than Tax Lien investing.
Because you are actually buying the property your due diligence must be very good. There are often good reasons the property owner chose not to pay the property taxes.
Why Tax Deeds Can Be More Profitable
Unlike tax liens where you earn interest on a certificate, tax deeds give you actual property ownership. This means you can immediately sell, rent, or develop the property — often for a fraction of its market value.
Due Diligence Checklist
- Research the property's market value and neighborhood
- Check for environmental issues or code violations
- Verify the property's physical condition (drive by if possible)
- Understand the redemption period in your state
- Calculate your maximum bid based on expected ROI
Jason Porter
Jason has been investing in real estate since 1990. Father of four and grandfather to eight, Jason focuses on Tax Deeds, Tax Liens, and Creative Financing to build wealth and help families in underserved communities. Author of the Amazon Best Seller Real Good Deeds.