I think tax lien investing is one of the most interesting ways to get involved in the real estate market. The advantages are overwhelming compared to other real estate investments. It is a relatively risk free investment because you will either receive your investment plus interest or you will be able to get ownership of the property. The interest rates are higher than most certificates of deposit or other bank interest. The initial investment is lower than any other real estate venture. Another advantage it is fairly simple.

Tax lien investing can be simple, but you need to have a plan and there is some research involved. You need to create a strategy before you get started. In order to create that strategy, you will need to know the following:

1. Research how different states/counties conduct tax lien sales. 
2. Decide which states/counties you want to participate in tax sales. 
3. Determine the specific procedures for participating in auctions in the county you have selected. 
4. If you want to invest through an IRA, you will need to set up a “self-directed IRA”. 
5. Determine if you want to just invest for the interest or if you want to ultimately own the real estate. There are different approaches to selecting properties depending on your goal. 
6. Decide how much you are willing to invest. Although you will get a good return on your investment, you will have to be willing to wait. There is no way to know when the property owner will pay the taxes owed. Be patient.

Tax lien investing can be a profitable investment, but it is not free or fast. If you are willing to do your homework and put a little of your portfolio into tax liens, you can make a good return. You can have fun in the process as long as you have a strategy.