There are some salesmen out there that can make new students believe that tax liens and tax deeds are the golden investment and that it's impossible to make a bad investment.  Well, you can make bad tax lien investments and you can lose money if you don't know what you're doing.  I've seen students pull profits from bad deals but that's the exception, not the rule. The safest way to invest in tax liens is to buy tax liens on single-family residential homes.  Almost every time the property owner will find a way to redeem to keep the home.  Or, if there is a mortgage, the bank will redeem in behalf of the property owner.  The bank generally won't lose their interest in the property over small tax lien certificates.  The general rule that we follow is if there is a home on the property chances are the tax lien won't go to foreclosure.  If it does, then you should be in good shape as the new owner of a single family residential home who got the home through a tax lien for pennies on the dollar.  If it doesn't, then you get your money back plus interest. Here are some things to avoid when researching potential tax liens and tax deeds: The property owner is unknown The property is in the middle of nowhere with no access The property cannot be built on due to property shape or zoning There are very low annual taxes on the property The property value is low or comparable to the tax lien value The property cannot be found on the tax map IRS liens exist on the property While considering these points to avoid some may be overlooked depending on your specific strategy or experience.  Without the proper help most students should avoid all of the above points and stick to single family residential homes. Don't let this blog post scare you.  My intention is only to make you aware of some potential pitfalls.  Tax lien investing is an incredible way to make money.  It's safe, secure and easy once you get going and get your feet wet with a couple properties. No Risk Investor is the ultimate resource and tool for tax lien, 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.