Georgia Tax Deed Sales: What Does a Redeemable Deed Mean?

Georgia Tax Deed Sales

Georgia Tax Deed Sales are an unusual hybrid that can make you returns of 20% or more, or you could end up with a property for mere cents on the dollar. 

Ted Thomas, America’s authority on tax liens and tax defaulted property investing, will show you how Georgia tax deed sales work and reveal when waiting just one more day can make a big difference in your rate of return.

Watch the video above or read the summary below:

Today, I’m going to answer your questions about Georgia tax deed sales.

I’m Ted Thomas, and I’ve been involved in the tax lien and tax defaulted property business for the last 25 to 30 years. I started out as an investor, and then I became a coach and a guide.

We’re going to talk about Georgia. It’s a good place to buy tax defaulted property, which they call redeemable tax deeds.

This is going to be unusual. It’s a little bit different. We’ve talked about tax liens a lot. Now we have an unusual kind of a hybrid. The hybrid is a tax deed, however, they call it a redeemable deed. What does that mean?

I’m definitely going to explain that to you, and I want you to stay with me because I’ll talk about redeemable tax deeds and also give you some hints on how to avoid the major mistakes people commonly make at auctions.

There are two major mistakes that investors make, and I’ll show you how to avoid those.

Learn more about tax liens and deeds today with the FREE Safe Haven Investor System Course (Valued at $197.)

Georgia Tax Deed Sales Are Held in 159 Counties

Let’s talk about Georgia tax deed sales. There are 159 counties in the state of Georgia, and all of the counties are authorized to do a tax defaulted auction, which simply means the property owner did not pay their taxes.

When they don’t pay the taxes, the treasurer or the ex-officio sheriff, one or the other, will take action and they’ll start to confiscate that property. They will ultimately confiscate the property if the taxes are not paid.

What they do at auction is they sell a deed to the property. A deed is a transfer of a property from owner to owner. In this case, they’re selling the deed to that property, but the deed is redeemable.

The Rules of Georgia Tax Deed Sales

The Georgia rules, and the rules in four other states, require that they sell a redeemable deed, and that means the property owner can come back. Let me explain that.

You go to auction, and you bid. The highest bidder gets it. What do they get? They get a redeemable deed. They do not get possession of the property.

You do not get possession. You get a redeemable deed.

the rules of Georgia tax deed sales

The Rate of Return on Georgia Tax Deed Sales

Anytime during the year, a one year period from the time of purchase, the property owner can return, come forward, and pay whatever you paid at the auction. That means you get back all your money.

Now let me say that again. You get back all your money, plus you’ll get what’s called a penalty return of 20%.

If you buy a redeemable deed at an auction in Georgia and they come in the next day and pay you, you’ll get back all your money plus 20%.

If they come in on day 180, six months later, and pay, you’re going to get all your money back plus 20%. All the way up to day 365, you will make 20%.

After day 365, well, you can do a lot of things. You could actually take over the property.

Georgia Tax Deed Sales Sell Redeemable Deeds

Let me repeat a little bit, because this is unusual. Georgia tax deed sales have redeemable tax deeds, and this is an interesting concept that takes place in about five states.

This redeemable deed simply means you don’t get possession. The property owner stays in the property.

However, any time during the 365 days, the property owner can step forward and pay you whatever you paid on your winning bid at an auction. Whatever you paid, you get back 100% of your money, plus a 20% return.

This has been in place for over 200 years. If you don’t understand the rules, well, be patient. Don’t jump the gun, learn what this is. Get the auction rules.

Watch more videos on my channel where you can learn a lot, and be sure to give yourself a big head start by getting my FREE Safe Haven Investor System home study course.

How to Get an Even Bigger Return on Georgia Tax Deed Sales

The deed is redeemable at any time. So the property owner can come forward and redeem the deed.

You can actually take the property from the owner after the first year. I tell my clients do not try to take the property.

Let it roll into the second year because on day 366, the property owner no longer owes you all your money back plus 20%. They now owe you all your money back plus 30%.

If it goes one more year, it’s all your money back plus 40%.  It goes from 20% to 30% to 40% to 50%.

So just think about what I said. It’s a powerful way to make money. These are outrageous returns.

Acquiring Property From Georgia Tax Deed Sales

Some people don’t want to get these returns. They want to get the property.

We can teach you in a classroom environment that certain properties always seem to go to auction. We can’t guarantee it, but they always seem to go to auction, and the property owners don’t redeem.

Other properties are going to redeem.

If it’s a nice property in a country club, you can be assured those people are going to redeem. If you bid and you purchased that redeemable deed, just be very patient and you’re going to make at least 20% on your money.

I don’t make these rules, but I can tell you Georgia’s a great place. I have many students that buy in Georgia.

getting property at Georgia tax deed sales

A Long History of Georgia Tax Deed Sales

They have auctions at all the counties. Note that when I say that, if they don’t have enough properties, they don’t auction them.

The point is, the first year you’re going to make a 20% return. The second year, you’ll make a 30% return. If you don’t get paid, you are going to get the property. Something to think about.

This process is straightforward once you understand it. But keep in mind, all of these rules were written somewhere between 50 years and 150 more years after that because these auctions have been going on for 200 years.

So you’re going to have to spend a little time looking at the county records, or get involved like you’re doing now and we’ll explain it as we go.

I have some people that have purchased as many as 100 redeemable tax deeds at Georgia tax deed sales. Think about that. It didn’t get done in one week’s time. That took a lot of time.

So what happened to someone that did 100 deals? Well, guess what? Lucky me, they came to work for me and now they’re a coach. Imagine learning from a coach that’s done 100 deals. That would be the place that you’d want to be.

Earn Big Profits From Georgia Tax Deed Sales

Here’s a perfect example. My student, Bob, bought a property, and he got the redeemable deed for $6,000.

Now he does nothing but sit on his rusty dusty. He just waits. It’s a passive investment. He invested $6,000, and the property owner did not step forward and pay back the $6,000.

That means Bob ended up with the property. Now he can do anything he wants with the property because he owns it. So he did just that.

Bob advertised not only on Craigslist and eBay, but he put up signs on the property.

He ended up selling the property for $30,000.

Let’s think about this. A $6,000 investment, and now you’ve got $30,000 in return. That’s a 500% return.

It doesn’t matter whether it took him one year or five years; he made a bundle of dough. You can do the same thing.

Investing in Property at Georgia Tax Deed Sales With an IRA

Can you do that in an IRA? Yes, you can do that in an IRA, which would mean that there are going to be no taxes due if it was a Roth IRA. That’s something to give a lot of thought to.

Tax Deeds Vs. Redeemable Deeds

With tax deeds you’re buying the actual property. However, if it’s redeemable, you have to give the property owner time to come in and redeem the property.

If they don’t redeem, you get the property.

If they do redeem, then you’re going to get a minimum of 20%. I would say that was a pretty darn good investment if you could make 20%.

What States Sell Redeemable Deeds?

What are the other States that have redeemable deeds?

Texas is a populous state where they pay 25% minimum. They have redeemable deeds.

Rhode Island has redeemable deeds.

Indiana has redeemable deeds, and also Delaware.

Georgia Tax Deed Sales in Big Cities Vs. Small Cities

Which is better? A big city or a small city?

What really makes a difference is the county population.

If the county population is large, that means there’s either going to be a lot of tax liens or a lot of tax defaulted property. If the county population is small, then you’re going to have a smaller auction.

Both are going to have auctions.

You might find dozens of properties in a place like Havasupai in Arizona, but if you went to Fort Lauderdale or Miami, you might find hundreds of properties.

Mistake #1 to Avoid at Georgia Tax Deed Sales

I promised you I’d tell you about two mistakes, so here they are. This is important.

When people are at an auction, they can get very excited. If you’re excited, you’re going to do things that you normally wouldn’t do.

One of the things that you don’t want to do is you don’t want to raise your hand or your bidder card and buy a property if you haven’t taken a look at the property.

You wouldn’t marry a woman you hadn’t seen. So don’t even think about buying a property you haven’t seen.

If you haven’t had your boots on the ground and your eyes on the property, then you don’t want to buy it.

Just let that go by because you don’t know what could have happened to it. There could have been a hurricane, or there could have been a fire.

It might even be next to a chicken farm, and you don’t want to be next to a chicken farm, I know that.

Mistake #2 to Avoid at Georgia Tax Deed Sales

So that was mistake number one. Number two is similar.

You get to the auction, you’re excited, and the bidding’s going back and forth. You miss the one you wanted, so you get bidding on the next one.

Well, wait a minute. How can you bid on the next one unless you have an exit strategy?

What’s an exit strategy? It means you know what you’re going to sell it for.

You don’t want to buy that property if you don’t know what you’re going to sell it for. Otherwise, you’ll bid, bid, bid, and you might win the auction.

Winning the auction is not important. What’s important is to get a great deal on the property.

However, if you don’t know what you’re going to sell it for, you shouldn’t be buying it. That’s what an exit strategy is.


In “Georgia Tax Deed Sales: What Does a Redeemable Deed Mean?” Ted Thomas explains that Georgia tax deed sales are an unusual hybrid and how they work.

At Georgia tax deed sales you either get at least a 20% return on your investment, or you get the property.

During the first year, whether the homeowner pays on day 1 or day 365, you get all your money back plus 20%. If you wait until day 366, you could get 30%. Or if you wait for another year after that to foreclose, you could get 40%.

If the homeowner doesn’t pay, then you get the property.

Georgia tax deed sales are different from regular tax deed sales because the homeowner is given a redemption period, so you don’t get possession of the property immediately.

If you’re interested in learning more about Georgia tax deed sales, Ted Thomas and his team of coaches and facilitators can help you.

Ted’s team has a lot of experience with Georgia tax deed sales and can even teach you how to tell if a property is likely to be redeemed or not.

For over 25 years, Ted Thomas has been teaching students how to safely and successfully invest in tax lien certificates and tax defaulted property.

Ted’s team helps students every weekday with research and auction preparation.

Expert coaches dispense advice in weekly Q&A sessions about tax liens and deeds, and that includes any question a student may have about Georgia tax deed sales.

Nobody offers more support than Ted, who is the only one with a complete support system.

Safe Haven 720x1024 1 1You can start your education today, and you can do it absolutely FREE. Right now, Ted is offering the Safe Haven Investor System course (valued at $197) as a gift to you.

Safe Haven is 2 hours of streaming videos and a 100-page illustrated manual that teaches you how to profit safely and securely from tax liens & tax defaulted property investing. So be sure to get your FREE Safe Haven course today.

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The Ted Thomas Difference:
  • Ted is recognized as America’s Tax Lien Certificate & Tax Deed Authority and has been helping people with investing in tat defaulted properties for over 30 years.
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