How To Buy Tax Lien Properties (480p)
: You buy a Tax Lien Certificate . You are not buying the property yet; you are buying the right to collect the tax debt plus interest (e.g., up to 18% in Florida or 16% in Arizona).
Tax laws vary significantly by location. You must first decide which of the three primary systems you want to navigate:
Buying tax lien properties is a multi-step process where you pay off someone's delinquent property taxes in exchange for the right to collect that debt back with high interest—or, in some cases, eventually take ownership of the home. 1. Choose Your State and Strategy
: Some states use both systems or "Redemption Deeds," which grant ownership that can still be "redeemed" (bought back) by the original owner for a limited time. 2. Locate and Research Auctions Tax Lien Certificates vs. Tax Deeds: What's the Difference?
: You bid on the actual property at a Tax Deed Sale . If you win, you own the home outright, though it often comes "as-is" and may require significant repairs.
