Last Updated on September 8, 2025
Table of contents
- Kevin’s Gas‑Station Miracle: A Tax Deed Deal You Can Learn From
- What Are Tax Deed Auctions?
- Kevin’s Life‑Changing Tax Deed Deal
- How to Find Your Own Tax Deed Deals
- Tax Deeds vs. Tax Liens
- Risks and Considerations in Tax Deed Deals
- Frequently Asked Questions (FAQ)
- Want to Learn How to Do This Yourself? Let’s Talk.
You’ve got to hear this story about a tax deed DREAM deal. Kevin is going to share all about it right here:
What if I told you that a single tax deed auction could change your life? That’s exactly what happened to Kevin. He walked into an auction expecting the usual competition, but instead, he found himself staring at a deal of a lifetime.
Kevin’s Gas‑Station Miracle: A Tax Deed Deal You Can Learn From
Many people dream of finding a once-in-a-lifetime real estate deal. Kevin, a tax deed investor, actually did. He went to a county tax sale expecting lots of competition. Instead, very few people showed up. A property worth about $850,000 came up for sale, and Kevin won it with the lowest bid. The property wasn’t just a house; it was a gas station and car wash. Kevin’s story shows that knowing how tax deed auctions work can open the door to big opportunities.
What Are Tax Deed Auctions?
When property owners don’t pay their taxes, the local government steps in to collect the money. In a tax deed state, the county takes control of the property through a legal document called a tax deed. This gives the county the right to sell the property to cover the unpaid taxes.
The sale happens at a public auction. The minimum bid is usually the amount of back taxes, interest, and fees. The highest bidder wins the property and must often pay in full within 48 to 72 hours. Unlike a tax lien, which is only a claim against the property, a tax deed gives the buyer full ownership.
Kevin’s Life‑Changing Tax Deed Deal
Kevin went to a tax deed sale, thinking he would face strong competition from experienced investors. To his surprise, very few people were there. When a gas station and car wash worth about $850,000 came up, Kevin placed the lowest bid, and nobody else raised it. The low turnout might have been from poor advertising, long travel, or investors not seeing the chance. Because Kevin understood the process and acted fast, he grabbed the property for far less than its value.
Kevin’s story shows that tax deed deals like this don’t happen every day, but they can happen. Success in tax deed investing isn’t luck; it’s about strategy, showing up often, and knowing what to look for. If you keep attending sales and learning the system, you’ll be ready when the next great tax deed deal appears.
How to Find Your Own Tax Deed Deals
1. Show up to the right auctions
Many investors focus only on popular counties or big cities, assuming all auctions are alike. Yet smaller counties often have less competition. Research local government websites for auction calendars and pay attention to counties that other investors might overlook. When you discover a sale, read the official list of properties, note the minimum bids and verify whether it’s a standard or redeemable sale.
2. Know the process inside and out
Each jurisdiction has its own rules for bidding, payment deadlines and title transfer. You need to understand bidding strategies, redemption periods and how to clear titles. In many auctions, the high bidder must pay the total amount within a set period. Failing to do so cancels the sale. Also, learn whether a former owner can redeem the property (only possible in redeemable tax deed states).
3. Do thorough due diligence
Never bid on a property without investigating it. Tax deed investing requires meticulous due diligence, including checking the property’s market value, zoning and any existing liens or mortgages. Visit the property if possible, verify its condition and research comparable sales. Look up any outstanding code violations or environmental issues that could be costly to fix.
4. Be ready to act
Opportunities at tax deed auctions appear quickly and vanish just as fast. Have your finances in order before the sale; some counties require cashier’s checks, while others accept electronic payments. Decide your maximum bid based on your research and stick to it. Be prepared to bid confidently and follow through.
Tax Deeds vs. Tax Liens
Beginners often confuse tax deeds with tax liens, but they are different. In a tax lien sale, the government sells a lien against the property instead of the property itself. The investor earns interest while the owner has time to repay; if the owner fails to redeem, the lien holder can eventually foreclose. Liens can cost a few hundred to a few thousand dollars and pay simple interest. By contrast, a tax deed auction transfers ownership of the property to the highest bidder, often with no redemption period. The table below summarises the key differences:
| Aspect | Tax Deed | Tax Lien |
|---|---|---|
| What is sold? | The deed (ownership) of the property. | A lien securing unpaid taxes. |
| Investor’s goal | Acquire property at a discount and either keep or resell it. | Earn interest and fees while waiting for the owner to pay back taxesinvestopedia.com. |
| Owner’s redemption | Often, none; in redeemable tax deed states, owners have a short period to buy back the property. | Typically has a longer redemption period; if the owner redeems, the investor receives principal plus interest. |
| Risk level | Higher; investors may inherit other liens or property issuesblog.gondolapartners.com. | Lower; the property serves as collateral for the lien, and investors earn fixed returns. |
Risks and Considerations in Tax Deed Deals
Tax deed investing can be profitable, but it comes with risks. Due diligence is crucial because you may inherit liabilities such as environmental problems or structural issues that are not obvious from the auction list. There’s also the possibility that the former owner challenges the sale, especially in redeemable tax deed states. Additionally, you’ll be responsible for all future property taxes and maintenance.
The process itself can be competitive; while Kevin encountered little competition, many auctions attract experienced investors who bid close to market value. Deals like Kevin’s happen, but they are not guaranteed. Approach each auction with realistic expectations and a clear understanding of your financial limits.
Frequently Asked Questions (FAQ)
A tax deed is a legal document that allows a county or municipal government to sell a property when the owner fails to pay property taxes. The deed transfers full ownership to the highest bidder at a tax deed auction.
In a tax deed sale, bidders compete to own the property. In a tax lien sale, the government sells a lien against the property, and the investor earns interest until the owner pays the taxes. Tax liens may eventually lead to ownership through foreclosure, but the initial goal is to earn a return on the lien
The original blog suggests that some counties get little attention, perhaps due to location, timing or investors’ assumptions. Kevin’s willingness to attend a less‑popular sale created an opportunity to bid without rivals.
No. Such opportunities don’t happen at every auction, but they do occur for investors who are consistent, knowledgeable and patient. Most tax deed sales have more competition and smaller spreads.
Yes. Counties typically require payment soon after the auction, often within 48–72 hours. Plan your finances in advance and verify acceptable payment methods.
Purchasing a tax deed may not automatically clear other liens or mortgages. You should research existing encumbrances and budget for clearing title issues. In some states, you may need a quiet title action or title insurance to ensure clear ownership.
Final Thoughts
Kevin’s gas‑station win shows the extraordinary potential of tax deed investing. He used knowledge, preparation and timing to acquire a high‑value property with a small bid. While few auctions offer such dramatic results, any investor can improve their chances by understanding the tax deed process, performing thorough due diligence and staying persistent.
Tax deed investing isn’t a get‑rich‑quick scheme; it’s a strategy that rewards careful research and consistent effort. If you’re curious about exploring this niche, start by attending local auctions, learning the rules and practising discipline. Kevin’s story proves that with the right mindset, you just might find your own unexpected treasure. the purchase.
Want to Learn How to Do This Yourself? Let’s Talk.
Kevin’s story is proof that tax deed investing can be life-changing. If you want to learn how to find deals like this, book a free call with my team and me. We’ll walk you through the steps and show you how to get started.
Don’t wait—opportunities like this are out there, but only for those who take action.
See you on the call!
— Dustin
