Zero Risk Real Estate: Creating Wealth Through Tax Liens and Tax Deeds

Selecting Your Location

Now that you’ve decided whether to invest in tax liens or tax deeds (profit vs. property), you’re ready to focus on location, location, location! If you ask any real estate agent around, they will tell you this is a key element in successful real estate investing. Location is so very important because it will affect the property’s appreciation and desirability as well as how easy or how difficult it will be to sell the property if and when you’re ready to do so. This philosophy is true in tax lien investing as well.

Selecting exactly where to invest is really a personal decision, so you should think about whether you want to purchase your tax lien or tax deed in an area close to where you live or go out of state. Whatever you do, don’t just jump at the highest interest rate. It’s tempting, but there are many other factors to consider.

Don’t just look for property in the state with the highest interest rate—there are many other factors to consider!

If your purpose is to own property and purchase tax deeds, then you might want to start close to home so that it will be easier to manage the properties. Most states don’t have any residency restrictions, so you can generally pick and choose where you want to invest based on criteria such as interest rates, redemption periods involved, the state’s economy (those with the most foreclosures and job losses), ...