How Do You Invest in Tax Liens?

How Do You Invest in Tax Liens?

Most newcomers have never heard about earning money with tax lien certificates. These certificates are an investment created and mandated by state and local governments.

I’m Ted Thomas, and today I’m answering your question, “How Do You Invest in Tax Liens?”

I’ll show you how you can earn safe, secure money and grow your investment portfolio with tax lien certificates. I’ve been teaching and guiding ordinary people about the benefits of tax liens and tax deeds for more than 25 years.

The system of tax liens and tax deeds for the collection of property taxes is over 200 years old, and the system works for all parties involved in the transaction.

Want to learn how to achieve financial freedom? Would you like to buy mortgage-free homes for pennies on the dollar? Or earn double-digit interest rates secured by real estate? Then you don’t want to miss this FREE Mini Course.

What Are Tax Lien Certificates?

I’ll start with foundational material, and you’ll learn about tax liens and where to buy tax lien certificates, which are available in half of the states, including Arizona, Florida and Ohio.

There are over 3,000 counties, and the counties that don’t sell tax lien certificates, confiscate the defaulted property and then resell it at a public auction.

Tax lien states do things differently. The individual who purchases a tax lien will own a certificate, however, they will not have possession of the property.

Tax lien certificates are issued by the county treasurer who auctions the certificates to generate income for the county. The treasurer uses the income to pay for county expenses like school teachers, police officers, firefighters and county employees.

tax lien certificate counties

Property Tax Lien Investing

How do you invest in tax liens? First, the county will generate a list of tax liens available, which they will publish on their website and in the local newspaper. So, you can easily do a property tax lien search, and anyone can purchase from the list.

When you purchase a tax lien certificate, you are paying someone else’s property tax.

The local government guarantees you will be paid. If for some reason, you don’t get paid, the county will award you the property.

Tax lien certificates are sold to pay back taxes. Small certificates could be $50 and larger denomination certificates for a high-rise office building or even a shopping center may be $200,000. There is plenty for everyone in all denominations.

Tax Lien Auctions In Florida

Millions of tax lien certificates are available nationwide. For example, in Florida, the state will schedule tax lien auctions in the month of May and possibly June.

Florida will have huge opportunities for newcomers as well as seasoned investors.

If you took the time to add together all the tax lien certificates available in Florida’s 67 counties, the total would be very close to one million certificates.

How do you invest in tax liens and tax deeds? Let me show you. I have a free gift for you, a special Master Class that will teach you how to profit with tax lien certificates and reveal the secrets of tax deed investing. Get your FREE gift today.

How to Search for Tax Liens

How do you invest in tax liens successfully? Preparing for the auction is very important. Many auctions are online.

The cautious educated investor looks at the property they plan to bid on, whether it’s a tax lien or a tax deed. Why do they look? Because when you buy a tax lien certificate, if you don’t get paid, you’ll get the property.

You look because the property may be located next to a city dump or a chicken farm. Do you want to bid on that particular tax lien? The quality you purchase makes a big difference, so you will want to do your research.

tax lien certificate auction

Tax Lien Auction Rules

How do you invest in tax liens at auction? Anyone can attend the auction. They may ask for your drivers license and require you to register.

The county will provide you with an auction list, and often, counties will have auction brochures explaining what you should expect and what they expect of you.

The auction rules may be changed instantly by the treasurer. There is no rule to tell you this, so I will. The treasurer is the most powerful government employee and will be sitting in attendance at the auction.

The mortgage and other junior liens on the property will be wiped out by state law.

Where are the Best States to Buy Tax Liens?

A common question is what is the best state and county to make money. In my opinion, the answer is different for each person.

If you live in a tax lien state, then it may be to your advantage to purchase tax lien certificates in your local state. It’s close by and would give you peace of mind which is an important part of investing.

Arizona sells tax lien certificates. The certificates have an annualized rate of 16% that translates to 1 ¼% per month or 16% annualized per year.

Iowa pays 24% annually or 2% a month for each month a tax lien certificate is outstanding. This is an outrageous high interest rate.

How do you invest in tax liens if you want the highest returns? If income is your most important criteria, Iowa and Illinois, which pays 36%, probably moves these states to the top of your list.

You Can Buy Tax Liens Online

How do you invest in tax liens without having to travel to attend auctions? Technology changed the business. Online purchasing opens up the whole United States.

Just 10 years ago, all bids were live in the auction room or by mail. Today, auction buyers can bid online.

Obviously, this opens up a whole new world, and yes, we have classes so you can learn online.

How to buy property with delinquent taxes is an easy process, and it’s lucrative. Savvy investors learn the rules and check out the property.


We hope you enjoyed Ted’s lesson, “How Do You Invest in Tax Liens?”

Tax lien certificates are one of the few low risk investments that pay high yields. You can earn interest rates of 16%, 18%, 24% or even up to 36%, and your investment is secured by real estate.

If you don’t get paid the interest, then you get the property, and you get it mortgage-free.

If you’d like to know more about tax delinquent real estate investing, Ted Thomas provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops, web classes, and personal coaching with certified coaches.

How do you invest in tax liens by Ted ThomasYou can learn how to reap the huge rewards from tax lien and tax defaulted property investing! Get started today by taking advantage of Ted’s Free Master Class! Act now, it costs you nothing and will give you a big head start!

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Ted Thomas

Ted Thomas is America’s Leading Authority on Tax Lien Certificates and Tax Deed Auctions, as well as a publisher and author of more than 30 books. His guidebooks on Real Estate have sold in four corners of the world. He has been teaching people just like you for over 30 years how to buy houses in good neighborhoods for pennies on the dollar. He teaches how to create wealth with minimum risk and easy-to-learn methods.

The Ted Thomas Difference:

  • Ted is recognized as America’s Tax Lien Certificate & Tax Deed Authority and has been helping people with investing in tax defaulted properties for over 30 years.
  • Ted has built a team of certified coaches that have 70 combined years of auction experience and are available to his students by phone to guide and mentor you to avoid getting overwhelmed or worse, losing money
  • Ted has ironclad PROOF that what he is teaching you does work. With hundreds of successful students providing testimonials and a 4.9 Google rating which is unheard of in this industry.
  • Ted and his staff don’t hide behind a website; they can be reached during office hours at 321-449-9940.

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