CalculateRealEstateROI

Strategy

Tax Lien Investing

Purchasing delinquent property tax liens at auction for interest yield or eventual deed acquisition.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Core concepts

Statutory interest

8–24% interest depending on state.

Deed pathway

Some liens redeemed; some convert to property ownership.

Examples

  • Florida lien auction: 5% interest min, 18% max, 2-year redemption.

Practical applications

  • Yield-focused investors.
  • Patient capital with research capacity.

Common mistakes

  • Buying liens without title research.
  • Confusing tax-deed vs tax-lien states.