Tax Lien Investing

Tax lien investing involves purchasing the right to collect unpaid property taxes from a local government. If the property owner fails to pay the taxes plus interest within a specified redemption period, the investor may be able to foreclose on the property. It is a highly technical, legal-heavy strategy that varies significantly by state and county. While it can offer high yields, it requires a deep understanding of local laws and the ability to navigate complex administrative processes.

It is not for the faint of heart and requires significant due diligence on the underlying properties.