0 false 18 pt 18 pt 0 0 false false false Determining how to proceed in tax lien and tax deed investing can be a tricky matter. Most new students don’t quite understand the difference between the two strategies so it makes the task especially daunting. Investing in both tax lien certificates and tax deed properties offer incredible opportunities, but they offer different opportunities. Tax lien certificates offer a safe, long-term investment while tax deed properties require more aggression and offer potentially greater returns. TAX LIEN INVESTING When the property owner fails to pay their property taxes the county immediately places a tax lien on the property. The county then issues a tax lien certificate and offers it for sale to investors. The investor purchases the tax lien certificate with the promise to receive their money back plus a state-mandated interest rate. If the investment fails – meaning the property owner doesn’t pay the delinquent tax amount to the county – then the tax lien is backed by the real estate for which the certificate was placed. The investor can foreclose to get the money back. TAX DEED INVESTING When the property owner fails to pay their property taxes the county usually places a tax lien on the property but will not issue a tax lien certificate for sale. The county sits on the lien for a while and waits through the redemption period. If the property owner does not pay the delinquent taxes after a certain period of time then the county will begin the foreclosure process. Once completed to the extent that the county has determined, the county offers the tax deed property for sale to investors. The two main questions investors should consider are these: How much money do I want to invest? How much time to I want to spend? Little money and more time = tax lien investing. More money and less time = tax deed investing. Of course, as an investor does more deals the time spent is decreased dramatically. Both will require a fair amount of time in the beginning, though. There is more to consider than just this, but this will help you get started. 0 false 18 pt 18 pt 0 0 false false false No Risk Investor is the ultimate resource and tool for tax liens, tax deeds, 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.