Tax Sale Investing in Coleman County, Texas

Tax lien and tax deed investing lets you buy property and make money. In Texas, they sell the property itself at public auctions, not liens. The previous owner has a short time to reclaim their property. During that time, the investor can earn a good penalty fee. If the owner doesn’t return, the investor gets full ownership. This article covers how Coleman County in Texas handles tax sales and why it’s a great spot for investors.

Brief overview of the county’s tax deed system

Texas is a redeemable tax deed state. When property taxes remain unpaid, the county seeks a court judgment and orders the property sold at a tax sale. The highest bidder receives a deed, but the deed is subject to a redemption period. Section 34.21 of the Texas Tax Code provides a two‑year redemption period for property used as a residence homestead or land designated for agricultural use, and a 180‑day redemption period for other property. To redeem the property the former owner must pay the amount bid at the sale plus a 25 % premium during the first year or 50 % during the second year; these statutory premiums represent the return to the investor if the property is redeemed.

Texas law also restricts who may purchase at a tax sale. Section 34.015 requires that the successful bidder show a written statement from the county tax assessor‑collector confirming that the bidder has no delinquent taxes. Prospective bidders should obtain this certificate before attending the sale.

Important details (summary table)

Item	Details and Sources
Tax sale type	Redeemable tax deeds; the winning bidder gets the deed, and the prior owner may redeem during the statutory period.
Typical sale date	First Tuesday of each month, 10 a.m.–4 p.m. (CT).
Redemption period	2 years for homestead/agriculture; 180 days for other property.
Return/premium	Bid plus 25% first year, 50% second year; capped at 25% for non-homestead.
Bidding procedure	Public oral auction; high bidder wins. Opening bid equals delinquent taxes, penalties, interest, and costs. Immediate payment required.
Registration and deposit	No formal pre-registration. Statement of no delinquent taxes required. Some counties may require cash deposit.
Auction location	Front steps, Coleman County Courthouse, 100 W Live Oak St., Coleman, TX 76834.
Time	10 a.m.–4 p.m. Central Time.
Contact for questions	Jamie Dodgen, Tax Assessor-Collector, 100 W Liveoak St., Suite 104. Phone: 325‑625‑2153, Email: cctaxac@web‑access.net
Where to find updates	Coleman CAD Tax Sales page, courthouse bulletin board, county clerk portal, CAD Latest News section.

Introducing Coleman County’s tax deed opportunities

Coleman County Overview  

Coleman County, located in West-Central Texas approximately 50 miles from Abilene, offers valuable tax deed opportunities and features a small population of around 7,882 residents. Known as the “Hunting Capital of Texas,” the area boasts six large lakes, including Lake Coleman and Ivie Reservoir, which are popular for fishing, boating, and camping. With abundant wildlife, open land, and affordable housing, Coleman serves local ranchers and hunters while supporting a tourism economy.

Investment Potential  

The county’s economy heavily relies on agriculture, with ranchers raising livestock and farmers cultivating crops. While manufacturing is limited, the low property prices attract investors seeking deals at tax sales. Texas law permits both local and international bidders, enhancing investment opportunities. The area’s historical context, which shifted from cotton production to livestock, alongside increasing wind farms, contributes to potential future growth in property values and offers landowners additional income sources.

What makes Coleman County tax deeds a smart investment?

High returns with lower risk

When property owners don’t pay their taxes, the county can take their property through a judicial foreclosure. This means the property is sold at a public auction on the first Tuesday of each month. The highest bidder pays the amount owed and gets a Sheriff’s deed. Unlike in some states, the investor owns the property right away but must wait for a redemption period: two years for homestead or agricultural land and 180 days for other property. If the original owner buys back the property, the investor gets a 25%–50% bonus on their bid. If the owner doesn’t redeem it, the investor keeps the property free of any claims, except for municipal or IRS liens. These investments can give better returns than bank CDs or bonds.

Auction process explained

1. Notice and publication – Properties scheduled for sale are listed in local newspapers and posted at the courthouse at least 21 days before the sale as required by Texas law. The Coleman County Appraisal District posts current notices in its Tax Sales section, and the county clerk maintains a bulletin board.
   
2. Eligibility and certificates – Bidders must obtain a no‑delinquent‑tax certificate from the tax assessor‑collector (fee up to $10) showing they owe no delinquent taxes in any taxing unit within the county. Without this statement, the auctioneer cannot issue a deed.
   
3. Registration – Coleman County does not operate an online platform; auctions are held in person. There is no formal pre‑registration, but bidders may be required to sign an affidavit certifying they are not acting for the defendant and are current on property taxes. Bring a photo ID and the no‑tax certificate.
   
4. Bidding – The auctioneer announces each property and the minimum bid (the judgment amount). Bidders call out bids; the highest bid wins. Payment is usually due immediately or by 4:00 p.m. the same day. Acceptable payment methods include cash, cashier’s checks or money orders. Buyers unable to pay promptly may forfeit their bid and deposit.
   
5. Post‑sale – The sheriff or constable issues a deed to the winning bidder. The deed is filed in county records and the redemption period begins. If the property is redeemed, the investor collects the statutory premium; if not, the investor becomes the unencumbered owner.
   

Maximum potential returns

Texas’s generous redemption premium means that investors can earn 25 % on their investment in just six months (non‑homestead property) or up to 50 % if the owner redeems in the second year on homestead property. Because the premium is a statutory penalty rather than an interest rate, the return is fixed and not dependent on an annualized calculation. Additionally, investors may recover reasonable costs for maintaining or insuring the property during the redemption period. If the owner fails to redeem, the investor obtains the property at what may be a fraction of market value, offering potential capital gains.

Open to all investors

Coleman County does not restrict bidders by residency. International investors and out‑of‑state participants are welcome as long as they comply with the no‑delinquent‑tax certificate requirement. However, investors should be aware of currency exchange, legal representation and travel logistics if attending in person.

Understanding the Coleman County tax sale process

Step‑by‑step auction

1. Review the list – At least three weeks before the sale, review the list of properties on the county’s website or at the courthouse bulletin board. Use online mapping tools to identify location, zoning and access. Check the appraisal district’s site for assessed value and tax amounts.
   
2. Perform due diligence – Visit properties when possible. Look for structural issues, environmental concerns or occupancy. Research title records for other liens (mortgages, IRS liens, HOA fees). While tax deeds generally wipe out junior liens, some liens (like municipal liens or IRS liens) may survive the sale.
   
3. Obtain your certificate – Request the statement of no delinquent taxes from the tax assessor‑collector. Texas law allows the office to charge up to $10 for each statement. Processing may take several days, so apply early.
   
4. Arrive early – Tax sales begin around 10 a.m. on the courthouse steps. Arrive early to sign in and ask last‑minute questions. Bring at least the amount you plan to bid in certified funds.
   
5. Bid strategically – Do not overpay. Many investors set a maximum bid based on the assessed value, repair estimates and desired return (taking into account the 25 % premium). Remember that if the owner fails to redeem you will own the property—so be prepared to manage or resell it.
   
6. Record your deed – After paying, file the deed with the county clerk. The redemption period begins when the deed is recorded.
   

Expected returns

Investors who buy non‑homestead property often see their money returned within 180 days plus a 25 % premium. For homestead or agricultural property the redemption can stretch to two years, and returns may reach 50 %. If the property is not redeemed, investors may profit from renting, selling or holding for appreciation. Because rural Texas property values have been rising due to urban spillover and wind‑energy development, there is potential for capital gains. However, there is always a chance that a property is worthless (for instance, landlocked or heavily encumbered). That is why due diligence is critical.

Foreign investor participation

The county allows foreign investors at the auction. They must attend in person (or appoint a representative) and obtain the no‑delinquent‑tax certificate. Some investors hire local attorneys or bid services to handle the purchase and post‑sale paperwork. International investors should also consider currency transfer, travel costs and U.S. tax implications.

Importance of due diligence in Coleman County investing

What due diligence entails

• Property inspection – Drive by the property to confirm it exists and is accessible. Many tax‑sale parcels are vacant lots or abandoned structures; some are underwater or landlocked. Photos from online listings or mapping tools can help evaluate terrain.
  
• Title research – Check for federal tax liens, municipal liens, HOA assessments and restrictive covenants. While tax deeds generally wipe out junior liens, IRS liens may have a 120‑day redemption window.
  
• Value assessment – Compare the tax appraisal to recent sales. Use county appraisal data, online real‑estate sites and local market knowledge. Estimate costs for repairs, clearing title, insurance and holding.
  
• Check zoning and use – Verify zoning with the county planning department. Some properties may be restricted for agricultural use, floodplain or conservation.
  

Risks of skipping due diligence

Failure to research can lead to buying landlocked parcels, hazardous waste sites or properties with unrecorded easements. Investors may also overpay for structures requiring demolition or repairs. Because taxes owed may represent only a small fraction of market value, some properties have little or no value. Always budget for title insurance, survey and legal fees.

Over‑the‑Counter (OTC) purchases

If a property receives no bid at the initial sale, the county may strike it off and hold it for resale. Investors can often buy these struck‑off properties directly from the county for the minimum judgment amount. These sales typically do not involve competitive bidding and may offer attractive opportunities for land at a low cost. Contact the Coleman County Appraisal District or the tax assessor’s office to see if any OTC or resale properties are available.

Pro tips

• Apply for your no‑delinquent‑tax statement early. It is valid for 90 days.
  
• Bring multiple cashier’s checks in various denominations so you can combine them to match your winning bid.
  
• Investigate the existence of homestead exemptions; homestead or agricultural property has a longer redemption period (two years), meaning your capital may be tied up longer.
  
• Remember that structures may not be occupied. You should not enter or claim possession until redemption expires; however, you may secure and insure the property to prevent damage.
  
• Keep detailed records of maintenance costs during the redemption period; these expenses may be reimbursable if the property is redeemed.

Conclusion

Coleman County is an interesting place for tax deed investors because it has a small population, lots of wildlife, and lakes. Auctions happen on the first Tuesday of each month, and bidding starts at the amount owed. Investors get a deed but there’s a two-year or 180-day redemption period. You can potentially buy properties for much less than their market value. There’s no complicated sign-up process, but you need to get a no-delinquent-tax statement and do some research on the properties. By staying informed and setting a budget, you can successfully navigate the tax sale process in Coleman County.

Frequently asked questions (FAQs)

When are Coleman County tax sales held? Tax sales occur on the first Tuesday of each month on the courthouse steps between 10 a.m. and 4 p.m. Central Time.

Do I need to register to bid? There is no formal registration. However, bidders must obtain a written statement from the Coleman County tax assessor‑collector confirming they owe no delinquent property taxes. Without this statement, the sheriff cannot issue a deed.

Where can I find a list of properties? The Coleman County Appraisal District posts sale notices on its Tax Sales page, and the county clerk lists foreclosure notices online. Notices are also posted on the courthouse bulletin board at least 21 days before the sale.

What is the redemption period and return? Homestead and agricultural property may be redeemed within two years, while other property has a 180‑day redemption period. The redeemer pays the bid amount plus a 25 % premium during the first year or 50 % during the second year.

Can I participate if I live outside Texas? Yes. The sale is open to all bidders, including foreign investors, as long as they obtain the no‑tax certificate and attend the auction or appoint a representative

Are there any over‑the‑counter sales? Properties that receive no bids are “struck off” to the county. Investors can contact the county to purchase these properties directly. Availability varies.

Useful Links

• Auction Calendar
• How to Profit from Texas’s Redeemable Deeds
• Let’s talk about redeemable tax deeds and how you can profit from them!
• Discover Tax Deeds and how you can find property for as little as $50! 
• Learn How to maximize profits at the Texas Tax Sales

Need a hand?

Coleman County has tax-sale opportunities waiting for you. Head to our Auction Calendar to see the listings. Use our free resources for valuable insights, and for a more detailed plan, book a callk a call with one of our experts

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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