Real estate investing doesn’t always require deep pockets or big risks. In fact, one of the most overlooked ways to find opportunities is through land with unpaid property taxes, also known as back tax land.
These properties often fly under the radar, but for the right investor, they can be a smart, affordable entry point into the market. The key is knowing how the process works, what to watch out for, and how to make decisions that set you up for long-term success.
What Is Back Tax Land?
Back tax land refers to properties with unpaid property taxes. When those taxes go unpaid for long enough, local governments can put a lien on the property. Eventually, that lien could lead to a public auction where the property is sold to recover the taxes owed.
That’s where investors come in. Buying tax delinquent land at these auctions can offer real value if you do your homework.
Want to learn more about investing in land? Check out the video below of land investor Clayton Hepler on the DealMachine Podcast.
Two Main Types of Tax Sales
There are two common types of tax sales you’ll come across:
- Tax lien sales: Here, you’re buying the lien itself. You don’t own the property yet, but you’re entitled to collect the back taxes plus interest. If the owner doesn’t pay, you may be able to foreclose and take ownership.
- Tax deed sales: This gives you direct ownership of the property. You win the bid, you get the deed, but there may be legal steps to take before you can do anything with it.
Each state has its own rules, so make sure you understand the local process before jumping in.
Where to Find Back Tax Land for Sale
The best place to start is often the county website. Most counties post tax sale details online, including lists of available properties, auction dates, and requirements to participate.
You can also check out government auction sites that specialize in tax sales or real estate data software to access information and pull together lists of properties. As you research, pay attention to:
- Registration deadlines
- Payment terms
- Property conditions
- Local zoning rules
A good property might be hiding in plain sight, but you’ll need to dig into the details to know if it’s worth your time.
How to Evaluate a Property
Once you’ve found a property that looks promising, take a closer look. Check things like:
- The physical condition of the land or structure
- Nearby developments or zoning restrictions
- Any additional liens or unpaid bills attached to the property
You can use local GIS (Geographic Information Systems) or property assessor sites to get a clearer picture. When possible, drive by the property yourself or connect with someone local to get eyes on it.
Know the Legal and Financial Basics
Rules around tax delinquent land vary by location. Some areas require a waiting period before you can take full ownership. Others might need legal action to clear the title. Talk to a real estate attorney if you’re unsure about the local laws.
Also, plan for more than just the purchase price. Legal fees, cleanup, repairs, and holding costs can add up. Building a solid budget up front will keep you from overcommitting or being surprised later.
Preparing to Bid at Auction
Before you bid, make sure you’re fully registered and understand how the auction works. Each county has different rules on how bids are placed and how payments are handled.
Set your maximum bid ahead of time based on your research and stick to it. Don’t let emotion drive your decisions in the moment. The best investors know when to walk away just as much as when to say yes.
After the Auction: What Comes Next
Winning a bid isn’t the end; it’s the start of the next phase. You’ll need to complete the paperwork, confirm you have a clear title (or take steps to get one), and decide what you want to do with the property.
Some investors flip the land for a quick return. Others hold it and wait for values to rise. Some turn it into income-producing rentals. Your strategy should match your long-term goals and your capacity to manage the property.
Final Thoughts
Buying back tax land for sale isn’t a shortcut to overnight success, but it can be a powerful way to build wealth over time. When you approach it with patience, solid research, and a long-game mindset, it’s a strategy that fits well into many real estate portfolios.
The key is to stay grounded, stay informed, and move forward step by step. That’s how lasting results are built.
