Tax Lien Properties
Hello Everyone!
My fiance and I are running into "not enough capital" bridge to expand our real estate portfolio. We recently started looking into tax-lien properties to help with our situation. I wanted to come on here and ask if anyone has any pointers, share their experience with these auctions, and anything to look out for.
Thank you all for your insight!
Most Popular Reply
Joshua — great question. Tax lien investing can definitely be a way to get into properties at a steep discount, but there are a few things to watch out for:
1. Due Diligence is Everything
Not every lien leads to a property you want. Sometimes you’re just buying the right to collect interest/penalties, other times you can end up with a property that has environmental or title issues. Always check the property condition and other liens before bidding.
2. Redemption Periods
In many states, owners have a redemption window (6–24 months) to pay off the lien + interest. That means you may not take ownership quickly, but you do earn a return if they redeem.
3. Competition
Auctions are competitive — institutional buyers often dominate, so margins can be thinner than they look on paper.
4. Alternative Angle
If your bigger challenge is “not enough capital” for traditional flips or rentals, you might also look at private lending/bridge options. For example, we fund investors up to 90% of purchase and 100% of rehab on flips (capped at 75% ARV). That way you don’t have to tie up as much of your own cash, and you can scale beyond what savings alone would allow.
Curious — are you and your fiancé looking at tax liens primarily for the interest yield, or with the hope of eventually taking title to the properties?
- Jackie Carmichael
