Last Updated on September 1, 2025
Table of contents
Step Off the Fence: Begin Your Tax Lien/Deed Journey
Do you want to invest in real estate but feel unsure about where to start? This video walks through a real house that needs repairs and explains how tax lien and tax deed investing can help you own property without spending a lot of money.
Why Tax Lien/Deed Investing Works
Tax lien and tax deed investing let you get property or earn high interest from unpaid taxes. When someone does not pay their property taxes, the county sells liens or deeds to get the money back. Investors can bid on either the right to collect the unpaid taxes or the deed itself. You can make good money, and you do not need a lot of money to start. Many lien certificates pay between 2 % and 36 % interest. Tax deeds let you buy property for less than its normal price, but you have to check the property’s condition first.
Benefits for Beginners in Tax Lien/Deed
- Low starting cost – You can buy lien certificates for just a few hundred dollars.
- High interest – Interest on liens is higher than what you get at most banks.
- Cheap property – Tax deeds let you own property for much less than usual.
Inside the Rehab Project
If you begin in a house bought at an auction, you see cracks in the walls, an old furnace and peeling paint. The video above shows how to add up repair costs, fix important problems first and make a budget.
The lesson is clear: a run‑down house can make money if you plan well. Fix big problems first, save extra money for surprises and hire good workers.
Liens vs. Deeds: Core Differences
| Feature | Tax Lien Certificate | Tax Deed | Notes |
|---|---|---|---|
| What you buy | The right to collect unpaid taxes with interest | The ownership of the property | A lien is sold before a deed sale |
| How you get money | Interest and fees | Profit from owning and selling the house | Deeds need more work |
| How much work | Mostly passive; you wait for the owner to pay | Active; you must check, fix and manage | Both need research |
| How you bid | You bid down the interest you will accept | You bid up from a starting amount | Rules change by county |
| If the owner pays | You get back your money plus interest | Not needed | Taxes are no longer owed |
| If the owner doesn’t pay | The property goes to a deed sale | You become the owner | Other debts may still exist |
Your Tax Lien/Deed Journey in Six Steps
- Learn the basics
Watch helpful videos and read guides to learn the rules and process.
- Know your state’s rules
Some states sell liens, some sell deeds, and some use a redemption system.
- Find and register for auctions
Counties announce live and online auctions. Sign up early.
- Check each property
Look up the location, value and any other liens. Do not trust photos alone; they may be old.
- Set a budget and bid smart
Decide how much you can spend. For liens, pick an interest rate that still makes money. For deeds, do not overpay and save for repairs.
- Plan what you will do next
Decide if you will wait for the owner to pay, foreclose on the property, fix and sell, or rent it. Each choice takes a different time and money.
Lessons from Experience
Dustin Hahn has over 22 years of experience and hundreds of deals in tax lien/deed investing. His key points are:
- Education matters. Learn from trusted sources; Dustin’s channel has thousands of videos.
- Take action. The best time to start was years ago; the second-best time is now
- Use free tools. Many counties offer auction calendars and mini courses.
Frequently Asked Questions
It is a claim sold by a local government that lets you collect unpaid property taxes plus interest.
A tax deed gives you the property when the owner does not pay taxes.
Some states sell liens, others sell deeds and a few offer redemption deeds.
They are backed by property, but hidden debts or bankruptcy can reduce your profit
Yes. Many counties run online auctions as well as live events.
No. Tax liens can cost as little as a few hundred dollars, but tax deeds usually need more money.
Final Thoughts
Tax lien and tax deed investing can be an easy way to get into real estate. By knowing the differences, doing good research and learning from experienced investors, you can move off the fence and start building your portfolio.
If you haven’t explored Tax Lien and Deed investing yet, don’t wait any longer. This video walks you through the basics, offers actionable tips, and shows how a calculated approach can lead to amazing results.
Click on the video above and learn how you can succeed in Tax Lien and Deed investing today.
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