While the background for tax deed investing and tax lien investing is very similar, there are some large differences that investors should be aware of.  In this post we will discuss some of those differences and what it means to new and experienced investors alike.  Here are some of those tax deed investing differences. Property Ownership Although many tax lien investors ultimately want to own properties, tax lien investing usually does not lead to property ownership.  When buying tax deed properties from the county, you are actually buying the property.  You take ownership of the property and are given the deed when the purchase is made.  This allows you to treat the property however you please.  Rent it, fix it, sell it, etc. Due Diligence More due diligence is required in tax deed investing than with tax lien properties.  When purchasing tax liens, an investor needs only evaluate the property superficially.  Meaning if the property is a single-family residential home, then chances are a tax lien investor needn't walk through the home.  When investing in tax deeds, more due diligence is necessary.  Since you will own the home, you need to evaluate the home like any other purchase keeping your exit strategy in mind. Process Usually within a year after taxes are delinquent, a tax lien is placed against the property.  States that issue tax liens will then issue tax lien certificates to investors.  States that sell tax deeds do not issue a tax lien certificate.  They wait it out.  After a determined time period where the property owner has not paid the taxes, the state will then start the foreclosure process and sell the tax deed to investors. No Risk Investor is the ultimate resource and tool for tax liens, deed, and real estate investors all over the world.  No Risk Investor takes incredible pride in its ability to help students take action, get into properties, and begin the journey to financial freedom.  No Risk Investor provides county lists, property lists, online auction lists, comprehensive training and education, an auction calendar, and online auction center, an investor community and much more for its members.