The Overlooked Goldmine of 2025
Tax Lien Investing is the Out-Performer That Nobody is Talking About in Financial Media
Sometimes, old ideas are the best new ideas. This weekend, I was noodling on that concept, which drove me into a frenzy. I took an old one (Tax Liens) and did some present-day research that inspired this post below!
While financial media remains fixated on stock market fluctuations, tariffs and trade wars, rising bond yields, and the latest cryptocurrency price action, one of the best-performing asset classes of 2025 continues to fly under everyone’s radar: tax lien investing.
With documented double-digit returns, asset-backed security, and increasing foreclosure trends fueling new investment opportunities, tax liens are my pick for one of the most underappreciated hard asset plays available today.
Yet, almost nobody is talking about it—but why?
In this deep dive, I’ll explore the best states for tax lien investing in 2025, why the rise in property values since 2020 has fueled new opportunities, and how investors can capitalize on this growing market. I’ll also provide a step-by-step action plan you can discuss with your financial advisor (or your spouse) to execute a tax lien investing strategy effectively with help or on your own.
Why Tax Liens Are a Powerful Investment Vehicle in 2025
Tax liens provide investors with high returns secured by real estate assets. When homeowners fail to pay property taxes, counties sell tax liens to investors, who then earn interest rates as high as 40% in some states. If the homeowner redeems the lien, the investor collects interest. If not, the investor may have the right to foreclose and take ownership of the property.
With rising property values and increased foreclosures in key states, the supply of available tax liens has grown significantly.
The four states that stand out as the best markets for tax lien investing in 2025 are:
Florida
Arizona
Georgia
New Jersey
Florida: A High-Growth Market with Expanding Tax Lien Opportunities
• Maximum Interest Rate: 18%
• Redemption Period: 2 years
Advantages:
• Florida ranks third nationally for foreclosure filings, increasing tax lien supply.
• The minimum guaranteed return is 5%, ensuring investors profit even on early redemptions.
• Online auctions make it accessible for out-of-state investors.
Why Florida’s Tax Lien Market is Expanding
• Foreclosures Are Rising: Florida has seen a significant increase in tax lien foreclosures, fueled by rising property taxes, insurance premiums, and mortgage rates.
• Property Taxes Are Rising: New homebuyers in Florida have faced sticker shock due to higher property tax assessments, which has led to more delinquencies.
Florida’s structured foreclosure process and rising tax lien supply make it one of the most attractive markets for investors in 2025.
Arizona: Low-Competition Opportunities and High Returns
• Maximum Interest Rate: 16%
• Redemption Period: 3 years
Advantages:
• Investors can purchase Over-the-Counter (OTC) liens, bypassing competitive auctions[2].
• Lower competition in rural areas offers strong returns.
• Streamlined online tax lien auctions make it easier to participate.
Why Arizona’s Tax Lien Market is Growing
• OTC liens allow investors to secure top interest rates (16%) without bidding wars.
• Population growth in Phoenix and surrounding areas has driven up property values, ensuring strong long-term security for tax lien investors.
Georgia: The Highest Returns in the Country
• Maximum Interest Rate: Up to 40% (depending on redemption timing)
• Redemption Period: 1 year
Advantages:
• Georgia’s redeemable deed system guarantees a 20% penalty return if redeemed within a year.
• If the property isn’t redeemed, the investor can foreclose and take ownership.
• Fast-growing real estate market supports demand for tax liens.
Why Georgia is a Tax Lien Goldmine
• Investors earn a flat 20% return, even if the lien is redeemed after one day.
• The short redemption period (1 year) means investors don’t have to wait long to secure their returns or take ownership.
Georgia’s system creates a win-win situation for investors—either they earn exceptionally high returns or they acquire valuable real estate for a fraction of its market value.
New Jersey: The High-Value Foreclosure Market
• Maximum Interest Rate: 18%
• Redemption Period: 2 years
Advantages:
• Investors can earn fixed 18% interest rates, regardless of bidding premiums.
• High property values ensure strong demand for tax liens.
• Foreclosure rates are rising, increasing lien availability[6].
Why New Jersey’s Tax Lien Market is Expanding
• New Jersey had one of the highest foreclosure rates in 2024, tying with Florida.
• High property values and tax burdens have pushed many homeowners into delinquency, creating a steady supply of tax liens for investors.
New Jersey’s dense population, structured tax lien laws, and high foreclosure rates make it a prime market for tax lien investing.
Rising Property Values Have Expanded Tax Lien Opportunities
Between 2020 and 2025, property values across the U.S. surged, leading to higher property tax assessments. Many homeowners have struggled to keep up, resulting in more tax liens and foreclosures.
Key Findings:
Florida’s tax lien supply has increased due to rising foreclosure filings, with one for every 3,086 housing units.
New Jersey’s foreclosure rate tied with Florida in 2024, making it a hot market for tax lien opportunities.
Higher property taxes nationwide have strained homeowners, leading to more delinquencies and a larger pool of tax liens for investors.
With increased tax lien availability, investors who understand these market shifts can capitalize on rising opportunities before institutional investors dominate the space.
Step-by-Step Guide: How to Invest in Tax Liens
If you’re considering adding tax liens to your portfolio, here’s an actionable strategy to discuss with your advisor:
Step 1: Identify the Best State for Your Strategy
• Florida & New Jersey: Best for high foreclosure rates and structured legal frameworks.
• Arizona: Best for buying Over-the-Counter (OTC) liens without competition.
• Georgia: Best for maximizing returns through high-interest redeemable deeds.
Step 2: Research State-Specific Laws
• Discuss redemption periods, interest rates, and foreclosure timelines with your advisor.
• Ensure you understand each state’s auction process and bidding rules.
Step 3: Set Your Investment Criteria
• Decide on a minimum interest rate you’re willing to accept.
• Consider the type of properties you want to target (urban vs. rural, residential vs. commercial).
Step 4: Participate in Tax Lien Auctions or Buy OTC
• Research upcoming county tax lien auctions.
• Look for OTC tax liens in Arizona and Florida to bypass competitive bidding.
Step 5: Perform Due Diligence
• Assess property values to ensure the tax lien isn’t worth more than the property itself.
• Check if there are any additional liens or legal complications on the property.
Step 6: Monitor Redemptions and Initiate Foreclosure if Needed
• If the lien is redeemed, collect your interest payout.
• If the lien isn’t redeemed, work with legal counsel to begin foreclosure proceedings.
How to Find Tax Lien Investment Opportunities Online
To access data feeds of tax liens for investment in Arizona, Georgia, New Jersey, and Florida, consider the following options:
1. Online Platforms
• Unique Exchange: This platform simplifies buying, selling, and managing tax liens across various states. It provides tools for auction listings, bidding, and portfolio management[9]. • County Websites: Many counties in these states provide online access to tax lien auctions and over-the-counter sales. For example, Gila County in Arizona lists tax liens on its website.
2. State-Specific Resources
• Arizona: Tax lien auctions are held annually in February. After the February auctions, over-the-counter liens are available. Check county treasurer websites for details.
• Georgia: Auctions are held monthly (first Tuesday). Contact county offices for redeemable deed opportunities.
• New Jersey: Offers competitive tax lien markets with strong safeguards. County websites or local government offices can provide auction schedules.
• Florida: Features online bidding systems for tax lien certificates. Visit county websites for auction details.
3. Specialized Services
• Platforms like Tax Sale Resources or Ted Thomas’ guides provide state-specific insights and resources for investors.
Final Thoughts: Why Tax Liens Deserve More Attention
Tax lien investing offers double-digit, asset-backed returns, yet it remains one of the most overlooked opportunities in the financial world.
The 3 Main Reasons the Media Ignores Discussing It:
1. It’s not sexy: It’s too predictable—tax lien investing doesn’t offer the hype and speculation that financial media thrives on.
2. It’s too rich to share: Institutional investors are quietly buying up tax liens, keeping the opportunity under wraps.
3. No Fees for Wall Street: It doesn’t fit Wall Street’s business model—financial advisors don’t earn commissions from it.
But for investors looking for high-yield, secured, recession-proof returns, tax lien investing should be on your radar in 2025.
Yours in wealth and health
~Chris J Snook
Sources & Further Reading
Best States for Tax Lien Investing in 2025 - Ted Thomas
Florida Foreclosures in 2025 - Homeinc
Florida’s Foreclosure Spike in 2025: What’s Driving the Increase? - Fast Title Search
Foreclosure Statistics: Will The Market Thrive? - DoorLoop
Property Taxes Expected to Spike for New Homeowners - ABC Action News
175+ Foreclosure Statistics: Market Reality Check (2025) - REsimpli
Weakening Local Governments by Eliminating Property Tax Revenue - Florida Policy Institute
Foreclosure Rates for All 50 States in March - SoFi
How Demand Planning Influences Supply Planning - Wolters Kluwer
Real Estate Deals 2025 Outlook - PwC
Tax Lien Investing Explained - Rocket Mortgage
Tax Liens for Individuals | Arizona Department of Revenue
Guide to Arizona Tax Lien Investing - Tax Sale Resources
Self-Directed Tax Lien and Tax Deed Investing | Accuplan