How to Buy Tax Lien Certificates – Are Tax Lien Certificates a Good Investment?


Let me tell you How to Buy Tax Lien Certificates and why this is such a good investment. Where else can you find something this secure that pays rates as high as 36%?

And everybody wins! You, the property owner, and the county. It’s benevolent! So let me show you how to buy tax lien certificates to prosper while helping local communities.

Today let’s talk about how to buy tax lien certificates.

Since 1972, I’ve been involved in real estate, but today I’m going to specialize and tell you how to buy tax lien certificates.

About 30 years ago, I changed over and made that my business for the future, and I’m going to show you how to get rich doing it.

If you get involved in tax lien certificates, you’re going to start receiving profitable checks directly from the government. Think about that.

Just like those checks the government’s been sending out, you’re going to get some from local counties when you get involved with tax lien certificates.

You’re going to find out that your whole life is going to change when this happens because this is an investment that’s been around for 200 years.

Anybody can invest in tax lien certificates. You can start with $50, $500 or $500,000. There are going to be tax lien certificates for everyone, and I’m going to show you how you could be making 16%, 18%, 24% and 36% from this.

I’m also going to tell you two big mistakes that I want you to avoid that are always happening at tax defaulted property auctions.


Before we get into how to buy tax lien certificates, let’s talk about why they’re sold. Where does this all come from?

It began when the legislature and the local county got together and said, look, we’ve got a lot of people that aren’t paying their property tax.

Basically every property in America has a property tax. Now, this is not a big tax. It’s like 1%.

This system is easy. It was created when most people couldn’t read and write. So you’re going to find that this is going to be easy for you to do. Then once you understand it, you can make money for the rest of your life.

Yes, for the rest of your life.

Everything I’m going to tell you is 200 years old.

The government created a win-win situation. What does that mean? It means that government is going to be happy with it; you’re going to be happy with it, and all of your community is going to be happier.

Why? Because what happens when thousands of people across America don’t pay their property tax?

The local government has a real problem if people don’t pay because local government gets all their revenue from property tax.

Some investors are a little on the skeptical side about this. Why? Because the media doesn’t know anything about it. It’s been around for 200 years, but the media is always skeptical.

So this investment was created by the government, and it was created for everybody’s benefit, for the government’s benefit and for your benefit. I’ll demonstrate that to you in the next couple of minutes.

Let’s understand the foundational information first. Every property in the United States, except for schools and churches is taxable. It’s a very small tax, usually 1% , 2%. It’s very, very low.

You might be in a state like York or California that’s a little high, but most of the states’ tax is very low.

If this low tax doesn’t get paid, what is the county going to do? The county’s got a real problem on their hands.

What’s the problem? Well, if they don’t get revenue, who’s going to pay the police department? Who’s going to pay the fire department? Who’s going to pay the school teacher?

Who’s going to fix the roads? Who’s going to pay for the court system? The local government has a lot of bills to pay, and we’ll talk more about that as we go along.

The point is they have bills to pay, so they have to collect taxes. If people don’t pay, what are they going to do?

Well, the legislature tells the treasurer in that county:

  • Number one, levy a tax.
  • Number two, collect the tax.
  • Number three, if the people don’t pay the tax, either confiscate the property or issue a tax lien certificate.

Today we’re going to learn how to buy tax lien certificates. Those tax lien certificates are high reward for you and high reward for the county and will also help the people that are late with their taxes to save their asset.


So let’s learn about tax lien certificates and tax defaulted to buy tax lien certificates and what are they

We learned so far that the legislature and the local county got together to collect this money. We also learned that they have to have this money because that’s how they pay for all the government services.

If the treasurer doesn’t get paid, I can assure you, I’ve been watching this for my 25 years as an investor, the treasurer will confiscate the property. Now, what are they going to do with it?

The treasurer does not want the property. They do not want the property. What they want is revenue. They want revenue to run the government, revenue on the tax roll.

If no one’s paying, they’re not on the tax roll. The tax roll is the money that’s coming in. They want that coming in. It’s like coupons. They want the money coming all the time so that they can pay all of their bills.

So, let’s say your state issues a tax lien certificate. That means someone in that community did not pay the tax.

When they didn’t pay the tax, they were sent notice, after notice, after notice. If they still didn’t pay the tax, then the county issued a tax lien certificate.


Anybody can buy that certificate. How would you buy it?

You could find a list of them in the newspaper. You can find a list of them online. Anybody can bid and buy tax lien certificates. No big deal. Anybody can buy them.

You do not get possession of the property. You do not get possession. This is why the states that sell tax lien certificates are very benevolent. You buy a certificate, but they don’t kick the people out. They let them stay there.

They give them a year or even two years to recover and get their act together, either get a new job, get their car fixed, or fix the roof.

In other words, when they get finished with their problems, they’re going to have to pay the tax. Then when they come in to pay the tax, they’re going to have to pay a late fee.


In some States, the late fee could be 16%, other states 18%, other states 24%. Illinois is 36%. Every state can make their own rules, and every county can make their own rules.

The lowest I’ve ever seen is 12%, and that’s out on Long Island in Nassau and Suffolk counties. In other places, like Cook County in Illinois and DuPage County, which is Chicago, my goodness, 36%. So you get the idea.

Anybody can buy a tax lien certificate. Some of them are 50 bucks, some of the 500 bucks. Some of them are $50,000. There are all different sizes. All you have to do is get the list.

You can learn to get the list. If you want us to teach you how to do it, we’ll show you a step-by-step process on how to bid. Each state, as I said, makes their own rules.


This is a quality investment if you make it that way. How do you make this a quality investment?

First of all, don’t buy tax lien certificates if you don’t know what they are. Don’t go over and pick a note and say, there’s a number, and I’m going to guess.

Every property has a number. Check the property out online. Go there, and put your boots on the ground, and check it. You don’t want to buy what you haven’t seen.

However, a tax lien certificate can be a high quality investment. It could be a beautiful house in the country club. It could be a ranch or a farm. It could be a residential lot.

Don’t buy junk; only buy good stuff. Because when you buy a tax lien certificate, if you don’t get paid, you get the property.

Let me say that again. If you buy a tax lien certificate, and you don’t get paid, you are going to get the property.


This is a predictable, certain and secure investment. If you don’t know about it, it’s time you started investigating. Why? Because the opportunity is very level. It’s there all the time.

I’ve been doing it, in round numbers, 30 years. I’ve been in the real estate market for more than 50 years.

This is the safest investment in America today. Why? Because you’re going to invest with the government. You’re going to get a check back from the government, and you’re going to get it again and again and again.

Why? Every time you invest, you’re going to get a check back. The property will not be yours when you buy a tax lien certificate immediately. If they don’t pay, then you’ll get the property.

What happens when you buy a tax certificate? You get a piece of paper that allows you to make a return of 16%, 18%, 24%, up to 36%. If that doesn’t sound like a lot, compare it with a passbook savings at a local bank.

So the counties advertise. You can buy all the properties you want, all the tax lien certificates you want. I’ll teach you about buying tax defaulted properties in another article, but this one’s all about how to buy tax lien certificates.


I’m in Florida. I’m broadcasting from a little studio in the back of my office, and I can tell you there are 67 counties in the state.

All of the counties will have tax lien certificates to sell. When you combine all the county auctions together, there will be over 1 million certificates just in the state of Florida.

I haven’t even talked about Texas. Haven’t had time to get to California, Washington, Virginia, Massachusetts, New York –  I haven’t even got there.

Can I show that Florida has an abundance of tax liens?

On my desk here, I have a newspaper, the Tampa Bay Times.

If I open the newspaper up, there are going to be somewhere between 20,000 and 40,000 certificates every year. Now that’s just one county called Hillsborough County.

Let me pick out something people know because they know football, Jacksonville Jaguars.

Here’s Jacksonville. There are about 30,000 certificates in here. There are no pictures. All there is, is a list of it. So that’s the 30,000 available in Jacksonville.

I can keep going on and on. Here’s one we don’t want to miss. This is the Miami Times. This has got over 60,000 certificates available, and this is just in the state of Florida – there’s a whole United States that has tax lien certificates.

1 million just in the state of Florida. Think about that. This is a business of abundance. You’ve got to get involved and get this thing figured out.

If you’re searching for good investments, this is the perfect investment.

You can’t invest with me. There are no brokers involved. You’re going to invest your money directly with the county.


Everybody benefits. The first beneficiary is the property owner. How is a property owner a beneficiary? They don’t lose their property. You don’t get the property. You don’t get possession, but you own all the rights to that property.

They can’t sell it. They can’t do anything with it. So they’re the beneficiary because they don’t lose.

You’re a beneficiary because you’re going to get paid a giant rate of return, 16%, 18%, 24%…

The county is happy, because now they have money to run the government.

This is a perfect business for everybody, and you’re helping your own community.


So what are the rates in different States? I’m here in Florida. The certificate will pay all the way up to 18%. That’s the highest you could earn in Florida.

Let’s talk about Arizona, so we cover the West coast. In Arizona, the certificates pay up to 16%.

Now, redeemable deeds are very similar to tax liens. They sell redeemable deeds, which pay 25% in six months, down in Texas. So think about that.

Most rates are annualized rates. Some states will have penalty rates. There’s a lot to learn here, and you need to start investigating this.

You’re probably wondering, do tax lien certificates apply in your state? About half the states are tax lien certificate states.


Before I finish let’s talk about those two big mistakes. You don’t want to make these mistakes. So just listen to me really closely, and you won’t do it.

Here’s what happens at those auctions. It doesn’t matter whether you’re a newcomer or an experienced investor. They all make this mistake.

They go to the auction. They’re all excited. And what do they do? They start bidding, and they’re bidding on property that they’ve never seen.

Now. You would never marry the woman if you hadn’t seen her. So forget about that. You need to have seen the property.

That means boots on the ground, eyes on the property, or someone you know has looked at that property. You do not want to buy a property that you haven’t looked at.

Why? What if there was a hurricane, or if there was a fire? What if it was next to a chicken farm? There could be all kinds of problems. So that’s mistake number one.

Mistake number two is very similar. You don’t want to make this one either.

Don’t get there, get all excited, and still want to make a deal after someone else beats you and bids more.

You want to be successful. What do you do? You jump the gun and start bidding when you don’t have an exit strategy. You do not want to buy any property if you don’t have an exit strategy.

What does that mean? Exit strategy means, you know what you’re going to sell a property for. If you haven’t seen it, that’s a problem.

If you don’t have an exit strategy, how do you know what to bid? You might be right past your exit strategy.

So those are two big mistakes people make. I know you won’t now because you’re going to avoid those.


Once you know how to buy tax lien certificates, you’ve acquired a skill that can earn you high returns over and over again for life. Tax lien certificates pay 16%, 18%, 24%, even as high as 36% interest, and they’re secured by real estate.

They’re one of the safest investments out there, and they’re benevolent. It’s a win-win-win situation. Not only are you prospering, but you’re also helping distressed property owners and local communities.

How to buy tax lien certificates is a relatively simple process, but you need to know the rules and do your homework to avoid making costly mistakes. I can show you to buy tax lien certificates with safe haven

If you want to know more about how to buy tax lien certificates, I have a gift for you.

It’s called Safe Haven, a course on how to buy tax lien certificates and tax defaulted property that you can have for FREE. It’s valued at $197, but act today and you can get at no cost.

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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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