It is critical to distinguish between these two "tax" investments:
: Winning bidders must often pay the full amount in cash or cashier's check within 24 to 72 hours . 2. Tax Deeds vs. Tax Liens buying tax deeds
: Usually covers back taxes, interest, penalties, and administrative costs. It is critical to distinguish between these two
Because tax deeds are sold "as-is," you assume all risks associated with the property's physical and legal state. buying tax deeds
: You are buying a certificate of debt . You earn interest (often 8%–24%), and you only get the property if the owner fails to pay you back and you complete a separate foreclosure process. 3. Essential Due Diligence