Dallas County, Iowa Tax Lien Certificate And Tax Deed Investing Guide

Introduction to Dallas County, Iowa tax sales

Dallas County sits just west of Des Moines and is one of the fastest growing counties in Iowa. Growth brings more housing, more new owners, and sometimes more unpaid taxes. This guide explains how the Dallas County, Iowa tax lien auction works, what to expect on sale day, and how investors can move from tax lien certificate to tax deed in a safe and smart way.

What is Dallas County tax lien and tax deed investing

Dallas County holds an annual tax sale to collect unpaid property taxes, as required by Iowa law. At the sale, you pay the delinquent taxes on a parcel and receive a tax sale certificate. The owner keeps the property but must repay you with interest. If the owner does not redeem within the legal time, you can start the process to get a tax deed and gain title.

Important Details

Item	Details
Tax sale type	Annual tax lien certificates that can lead to a tax deed.
Typical sale date	Third Monday in June each year, plus later adjourned sales.
Redemption period	About two years plus a ninety day notice period.
Interest rate	Two percent interest per month on tax sale amount and later taxes.
Bid procedure	Bid down ownership interest from one hundred to one percent.
Deposit and payment	Full payment by ACH from your bank account after the sale.

What are some fun facts about Dallas County

• Dallas County was named for George M Dallas, a United States vice president.
  
• It has grown from about sixty six thousand people in 2010 to well over one hundred thousand residents.
  
• The county is part of the Des Moines metro area and includes fast growing suburbs like Waukee and West Des Moines.
  
• Reports show strong household incomes and high education levels, which support property values and tax collections.
  

What attractions and economic features support the tax base

• Attractions
  
  • Raccoon River Valley Trail offers almost ninety miles of paved trail for walkers and cyclists.
    
  • Small towns like Adel and Dallas Center offer classic Iowa charm with local shops and events.
    
• Transportation
  
  • Interstate 80 and U S Highway 6 connect Dallas County to Des Moines and the rest of Iowa.
    
• Economy and community
  
  • Major industries include finance, insurance, health care, and education, with steady job growth and strong wages.
    

Why is Dallas County ideal for tax lien and tax deed investors

• Growing population and strong incomes support steady demand for housing and rentals.
  
• Median home prices are higher than many Iowa counties, so small tax sale investments can control high value property.
  
• Tax lien certificates earn high returns through two percent monthly interest, a low risk investment backed by real estate.
  
• State tax lien opportunities here combine strong growth with a clear path from certificate to deed.
  

How does the Dallas County tax lien and tax deed auction process work

Dallas County holds its annual tax lien auction in June at the Dallas County Administration Building in Adel. The sale usually starts at nine in the morning Central Time with check in around eight thirty.

Adjourned sales for unsold parcels may occur on later third Mondays except July at the Treasurer office.

How the auction works on sale day

• Parcels with delinquent taxes appear in a legal notice in local newspapers and on the county website.
  
• Each parcel has a sequence number. The Treasurer offers parcels in order starting at one hundred percent ownership.
  
• Bidders do not raise the dollar amount. Instead they bid down the share of ownership from ninety nine percent toward one percent.
  
• The bidder who accepts the smallest ownership share wins the certificate and still earns two percent monthly interest.
  
• If two or more bidders choose the same lowest share, a random selection program picks the winner.
  
• You must pre register, submit bidder forms, and pay a ten dollar fee before the deadline in early June.
  
• After the sale, payment is taken by ACH and you receive an electronic tax sale certificate.
  

What are the maximum and expected returns on Dallas County tax lien certificates

Iowa offers a strong interest rate. Redeeming owners pay two percent interest per month on the amount you paid at the sale, including the certificate fee and later taxes you pay.

A certificate redeemed after one year earns about twenty four percent interest. A two year redemption can reach almost fifty percent before research and mailing costs. Returns depend on how long the owner takes to redeem, how many later tax years you pay, and your own expenses.

Is the Dallas County tax sale open to all investors, including foreign buyers

Dallas County allows both local and out of state investors. Bidders must be at least eighteen and must provide a taxpayer identification number and completed W nine form so interest can be reported to the IRS.

International investors often obtain a United States tax number and register the same as domestic bidders. Entities need a registered agent for service in Iowa. This makes Dallas County accessible for global investors seeking strong real estate backed returns.

Why is due diligence so important in Dallas County tax lien investing

Dallas County follows the buyer beware rule. The Treasurer sells the lien only and does not guarantee clear title, safe structures, or usable land.

What due diligence should investors perform

• Use county real estate inquiry tools to review each parcel.
  
• Check aerial maps and street views for structures and access.
  
• Look for any city code violations or demolition orders.
  
• Review court records for mortgages, judgments, or federal liens that may survive a tax deed.
  
• Estimate repair costs and resale value before bidding.
  

What are the risks of skipping due diligence

• You may buy narrow or landlocked parcels.
  
• A house may be condemned or have major damage.
  
• Federal liens or city assessments may remain even after a deed.
  
• Rural parcels may have limited resale demand.
  

Can you buy over the counter tax liens and deeds in Dallas County

Yes. Parcels that do not sell at the June auction may be offered at adjourned sales or held as county owned certificates. Investors can buy these by assignment.

How to purchase over the counter liens or deeds

Request the list of county held certificates. Choose parcels you want and pay the outstanding tax sale amount, the certificate fee, and the assignment fee. The assigned certificate gives you the same rights as a regular sale buyer.

What are the benefits of over the counter purchases

• No bidding pressure and more time to study each parcel.
  
• Many parcels serve as side yards or small lots that nearby owners value.
  
• You still earn the same two percent monthly interest.
  

Why is Dallas County a top choice for tax lien and tax deed investors

Economic and tax advantages

• Fast population growth and strong incomes support property values and tax collection.
  
• Close access to the Des Moines job market helps maintain steady demand.
  
• Large sectors in finance, insurance, education, and health care create a stable economy.
  

Real estate market overview

• Median home prices in the mid three hundreds reflect strong property values.
  
• Homes tend to sell within one to two months, helpful for investors who gain a deed.
  
• New construction continues, showing long term housing demand.
  

Conclusion

Dallas County offers a clear and steady tax lien system. The two percent monthly interest rate gives strong returns and the path to a tax deed provides a real chance at property ownership. Growth, strong wages, and steady housing demand make the investment potential here attractive.

Every investor should perform strong due diligence. Each parcel is different. Research the title, condition, and local market before bidding. Smart planning leads to safer and stronger results in Dallas County tax lien and tax deed investing.

Pro tips for Dallas County tax sale investors

• Target parcels near trails or major highways for better long term value.
  
• Use county mapping tools to check lot shape and access before bidding.
  
• Track redemption rates on the county website to understand typical outcomes.
  
• Use a simple worksheet to track taxes, repairs, and resale value.
  
• Start with a small list of parcels before expanding your bidding strategy.
  

FAQs about Dallas County tax lien and tax deed investing

Useful links

• Iowa Tax Liens: Investing for Steady Returns
• Tax Lien Certificates Explained: A Comprehensive Overview
• Step-by-Step Guide to Beginner Tax Lien Investing

Need a hand

If you want help building your Dallas County, Iowa tax lien plan, you are not alone. Our team can walk you through your first auction, review parcels, and guide you with free resources. Visit our Auction Calendar and book a call so we can help you plan your next steps.

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About Dustin Hahn

Dustin Hahn is a Tax Lien & Deed investor with over 22 years of experience and hundreds of deals under his belt. He created Tax Lien School.com to help you buy Tax Deeds up to 90% off mortgage free and earn up to 36% ROI with Tax Liens. This site was voted the “Most Useful Resource” for new investors. Dustin’s YouTube Channel is the #1 Channel on Tax Liens & Deeds with over 98,000 Subscribers and 3600 videos to help you start. “The Best Time To Start Real Estate Investing Was 20 Years Ago, The Second Best Time Is TODAY!”

20+yrs

5–10deals/mo

2009TLS founded