: You are buying a certificate of debt . You earn interest (often 8%–24%), and you only get the property if the owner fails to pay you back and you complete a separate foreclosure process. 3. Essential Due Diligence
Buying a tax deed is a high-stakes real estate strategy where you purchase the actual property—not just a debt claim—after the owner has defaulted on property taxes for an extended period. While this can lead to acquiring assets at , it requires significant cash liquidity and rigorous legal follow-up. 1. How Tax Deed Sales Work buying tax deeds
Buying Tax Deeds: A Guide to Acquiring Real Estate at Auction (2026 Edition) : You are buying a certificate of debt
When property taxes remain unpaid for a "redemption period" (typically 1–3 years), the local government forecloses and auctions the property to recoup the debt. Essential Due Diligence Buying a tax deed is
: You are buying the property . You become the owner immediately, though some states have post-sale redemption periods.
: Conducted at the county courthouse or via online platforms like RealAuction or Grant Street Group.
: Usually covers back taxes, interest, penalties, and administrative costs.
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