Tax Deed Investing

Tax deed investing involves purchasing properties whose owners have failed to pay property taxes. When taxes go unpaid, the local government may sell a tax deed at auction to recover the owed amount. Buyers pay the tax debt, and in return, they acquire the property, often at a fraction of its market value. If the original owner doesn’t redeem the property by paying back taxes, the investor gains full ownership. This strategy can yield significant profits, but it also carries risks, including potential liens or other ownership disputes, so thorough research is essential before investing.