Tax Deeds – or as they are sometimes called, Sheriff’s Deed Sales, are sales of property in which the county, city or other taxing district forecloses on a property for failure to pay taxes. This allows an investor to buy the property for as little as the taxes owed. In some cases, it is possible to buy property for 50, 75 or even 90 percent below market value. A few states even have a right-of-redemption period in which you can earn flat interest rates of 20 percent in Georgia and 25 percent in Texas, even if the properties are redeemed in less than one month.

Some states set minimum bid amounts for properties in addition to the taxes owed, so it is important to educate yourself on how to maximize your investing.

In Summary:

Tax deed foreclosure sales allow investors to purchase properties directly from the county or government agency for as little as the taxes owed. Some states set a minimum bid based upon the property’s value.