Anyone can purchase tax liens or tax deeds. You do not need to have good credit and you do not need to know a lot about real estate. Tax sales are usually published on the local news paper. You can also find out the list of delinquent tax properties, the place, the date and the time where the tax auction will be held at.
Some states are Tax Lien states whereas some states only offer Tax Deeds. You need to decide which path to take. If you have more capital to start with, you may want to start with Tax Deeds for a quick wealth accumulation. But you can also start with a small amount of capital. The Tax Lien Certificate price range varies from as low as $10 for a piece of vacant land or can be as high as hundreds or thousands of dollars for a commercial property like a high raise office building in downtown.
When buying Tax Lien Certificates, the average return is from 8% to 50%. The redemption period varies from 1 year to 5 years depends on which state you pick to invest in.
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