Tax Deed Sales vs. Tax Lien Certificates

When the government auction off the deed to the property for the assessed value of the property this is called Tax Deed Sales. Before bidding on any property, you as the investor must assess the property thoroughly. I would recommend that you drive by and view the condition of the property and do Title Searches. In rare cases, you might end up with the property. If the property needs a lot of work, you'll end up investing a lot of money to fix it up for sale. Although you have purchased a deed, you do not have interest in the property. That means you do not have any rights to the property. You can't kick the tenant out nor can you turn around and sell the property. You want to hear more bad news? As the investor, you may be responsible for additional costs such as judgements. And any outstanding liens will be attached to the property.Read more on Assessing Tax Deed Sales


With Tax Lien Certificates, you as the investor earn interest on the purchase. The investor will pay the amount of the past due taxes or the amount of the bid. In return, the property owner pays the investor any where from 6% to 24% (depends on the bid and state).