Buying a tax sale property is a "high-risk, high-reward" investment where a government body auctions off real estate because the owner has failed to pay property taxes. 1. Know the Two Main Types
The rules vary by county, but the standard flow usually looks like this: how to buy tax sale properties
Even after you "win," the original owner often has a legal right of redemption . This is a window (months to years) where they can pay back the taxes plus interest to get their house back. If they pay, you get your money back plus interest. Buying a tax sale property is a "high-risk,
If you win, you must usually pay the full balance very quickly—often within 48 to 72 hours. 3. The "Redemption Period" Catch This is a window (months to years) where
You buy a "tax lien certificate." You don't own the house yet; you own the debt. You earn interest on that debt, and if the owner never pays you back, you can eventually foreclose to take the property. 2. The Step-by-Step Process