How to Earn Better Than Market-Rate Returns with Tax Liens & Tax Deeds

Young man looking out a window with his briefcase and coffee waiting for the tax lien and tax deed auction to start.
How to Earn Better than Market Rate Returns with Tax Liens & Tax Deeds | Blog |

Are you interested in investing in real estate but you don’t have much cash?

There are plenty of ways you can invest in real estate if you don’t have a lot of money to spend.

If you don’t have any cash, or your cash is low, a few optional strategies could be the following:

  • Wholesaling
  • Bird Dogging
  • Sub-Leasing for Profit
  • Owner Financing Deals
  • Subject-To Deals
  • Tax Lien & Tax Deed Investing

In today’s article, we will focus on tax liens and tax deeds.

Did you know there are over 3,000 counties in the USA that all hold their own tax lien sales, tax deed sales or both?

Getting educated on how the tax lien and tax deed process works could be a viable investment strategy for you.

Many auctions for tax liens and tax deeds offer you eligible interest-income bearing investments for the cost of the minimum eligible bid at the auction.

  • This minimum bid could be only $250.

Gaining a winning a bid for a tax lien or tax deed could grant you future eligibility to earn interest-income or to own the property.

This is not a bad return on investment if proper due diligence is performed to mitigate risk.

The potential interest-income earned on tax liens and tax deeds are known to deliver much higher returns than stock market averages.

Understanding risks and making calculated decisions is definitely a part of this investment strategy.

See the list below of the top 10 states with the highest potential return on investment for both redeemable tax liens and tax deeds.

Top 10 States for Highest Potential ROI for Tax Liens & Tax Deeds

Red "Bid" button on a keyboard used to place your bid for the online tax lien and tax deed auction.
How to Earn Better than Market Rate Returns with Tax Liens & Tax Deeds | Blog |
  1. Iowa – Highest potential ROI – 72%
  2. Texas – Highest potential ROI – 50%
  3. Illinois – Highest potential ROI – 48%
  4. Georgia – Highest potential ROI – 30%
  5. New Jersey – Highest potential ROI – 24%
  6. Nevada – Highest potential ROI – 20%
  7. New York – Highest potential ROI – 20%
  8. Connecticut, DC, Florida, Mississippi, Ohio & Wyoming – Highest potential ROI – 18%
  9. Arizona, Massachusetts & Rhode Island – Highest potential ROI – 16%
  10. Indiana – Highest potential ROI – 15%

If you aren’t familiar with the rule of 72, it is a useful formula that is popularly used to estimate the number of years required to double the invested money at a given annual rate of return.

Getting familiar with how tax liens and tax deeds work, could be a lucrative investment strategy for you to learn.

Thanks for joining us today faithful readers – future leaders.

Love ya and keep striving for growth.

Please comment if this investments strategy interests you.