How to Earn Up to 16% Returns in Maricopa County Tax Deed Investing?

Investing in tax lien certificates in Maricopa County can yield returns of up to 16%. This guide will explain how to take advantage of this opportunity and maximize your investment.

Key Steps to Invest in Maricopa County Tax Liens

1. Understanding Tax Lien Certificates

When property owners fail to pay their taxes, Maricopa County issues tax lien certificates to recover lost revenue. By purchasing these certificates, you pay the owed taxes and earn interest when the property owner redeems the lien.

2. Why Invest in Maricopa County?

• Guaranteed Returns: Once the property owner pays the overdue taxes, you receive your investment back with interest.

• Property Acquisition: If the owner does not pay within the redemption period, you could acquire the property by paying just the back taxes, often at a fraction of its market value.

3. Bidding Process

Maricopa County uses a bid-down interest system:

• Starting Rate: 16%

• Bid Down: Bidders compete by lowering the interest rate they are willing to accept.

• Winning Bid: The lowest bidder gets the certificate at the specified interest rate.

4. Essential Details

• Annual Sale: The tax lien sale occurs in early February.

• Online Auction: Conducted by Real Auction.

• Registration: Must register with the county and submit a 10% deposit of your anticipated investment, with a minimum of $500.

• Due Diligence: Always inspect the property before bidding to ensure it meets your investment criteria.

Getting Started

Visit Official Websites:

• Maricopa County Treasurer’s Office

• Maricopa County Property Assessor

• Auction Site

Research:

• Use the “Liens and Research” section on the Treasurer’s website to find detailed information about the tax lien sale process.

Prepare for the Auction:

• Review Property List: Obtain the list of properties available for the upcoming sale.

• Inspect Properties: Use tools like Zillow and Redfin to check property details. Conduct a physical inspection if possible.

• Set Investment Goals: Decide whether you aim for maximum interest return or potential property acquisition.

FAQs

Q1: What happens if the property owner doesn’t redeem the tax lien? A1: If the owner fails to pay within the redemption period, you can initiate foreclosure proceedings to acquire the property.

Q2: Can I participate in the auction if I’m not a resident of Arizona? A2: Yes, the auction is open to investors nationwide.

Q3: Is it possible to buy tax lien certificates after the auction? A3: Yes, unsold certificates are available over the counter on a first-come, first-served basis.

Investing in tax lien certificates in Maricopa County can be a profitable venture if approached with careful planning and thorough research. By understanding the process and doing your due diligence, you can achieve impressive returns and potentially acquire valuable properties.

Need a Hand?

If you need some guidance with this process, you can book a call with us here. We’re here to help you navigate the process, avoid common pitfalls, and potentially save you three to five years of trial and error.

Sign up or log in to view the full content.

Free help available

Get a Tax Deed in the next 30 days

Need a hand on your first deal at up to 90% off? Book a free call and we’ll guide you step by step.

Auction
Calendar Book a free
call Free
resources

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