How to Buy Tax Lien Certificates: Step-by-Step

Step 1: Finding the Auctions

Tax lien sales are administered at the local level, usually by the County Tax Collector or County Treasurer. Every county has its own auction schedule—some hold them annually in a specific month, while others hold them monthly.

Today, many counties utilize online auction portals (such as Grant Street Group, Realauction, or SRI). This allows investors to bid from anywhere in the world without attending a live courthouse auction.

Step 2: Securing the List

Approximately 3 to 4 weeks before the auction, the county publishes a list of all delinquent properties. This list includes parcel numbers, owner names, and the amount of taxes owed. This is your window to research the properties and filter out the duds.

Step 3: Registration and Deposits

To participate, you must register an account (often requiring your SSN or an EIN for your LLC). Most counties require an upfront cash deposit via ACH or wire transfer. Your maximum bidding power is usually a multiple of this deposit. For example, a 10% deposit requirement means depositing $1,000 allows you to win up to $10,000 in liens.

Step 4: Placing Your Bids

In a live or online auction, you will bid according to the state's specific rules (bidding down interest rates or bidding up a cash premium). It is highly recommended to run your maximum acceptable bid through our Bid Calculator before the auction begins. Stick strictly to your numbers; do not let auction fever push you into an unprofitable bid.

Step 5: Funding and Certificate Issuance

If you win, you usually have 24 to 48 hours to wire the remaining funds to the county. Once funded, the county issues a Tax Lien Certificate in your name, beginning your redemption wait period.