How To Buy Tax Lien Certificates -

Most auctions are held annually by the county treasurer or tax collector.

What Is Tax Lien Investing and Is It Worth the Risk? - Freedom Mortgage

States set maximum interest rates, often ranging from 8% to 36% . For example, Iowa offers 2% per month (24% annually), while Alabama is fixed at 12%. 2. Find and Register for Auctions how to buy tax lien certificates

Buying a tax lien certificate is a way to invest in real estate debt by paying off someone else's delinquent property taxes in exchange for the right to collect that debt plus interest. If the owner fails to repay, you may eventually have the right to foreclose and take ownership of the property. 1. Research Your Target State and County

Not every state sells tax lien certificates; some sell "tax deeds" instead, where you buy the property itself immediately. Most auctions are held annually by the county

Many counties now use third-party sites like GovEase , Bid4Assets , or RealAuction .

You must usually register in advance and may need to provide a deposit or proof of funds. For example, Iowa offers 2% per month (24%

These include Alabama, Arizona, Colorado, Florida, Illinois, Indiana, Iowa, Kentucky, Maryland, Mississippi, Missouri, Montana, Nebraska, New Jersey, and others.