If you’re looking for a low-cost way to get into real estate investing without buying a property outright, tax lien investing might be your ticket in—and Sarasota is a great place to start. This investment strategy can earn you double-digit returns backed by Florida law, and if you play your cards right, you might even end up owning a property for pennies on the dollar.
Here’s everything you need to know to get started locally.
💡 What Is Tax Lien Investing?
When a property owner in Sarasota (or anywhere in Florida) doesn’t pay their property taxes, the county needs to recover that revenue—so they auction off a tax lien certificate to investors. This certificate is essentially a legal claim against the property for the amount of unpaid taxes plus interest, which you (the investor) can collect once the homeowner pays up.
Think of it like being the county’s lender. The homeowner pays you back instead of the government—with interest.
📍 How It Works in Sarasota & Manatee Counties
Each year, typically around late May or early June, Sarasota County holds an online tax certificate sale through LienHub.com. This is where investors bid on tax liens using a reverse auction format—the lowest interest rate bid wins (starting from 18% and going down).
You can participate from anywhere, but being local gives you an edge. You can drive by the properties, check out the neighborhoods, and evaluate real risks that out-of-state investors might miss.
🔍 Steps to Start Investing in Tax Liens in Sarasota
1. Create a LienHub Account
Go to lienhub.com and register as an investor for Sarasota County. Manatee County also uses this system.
2. Research the Properties
Before bidding, dig into:
-
Parcel location and condition (drive by if possible)
-
Property type (vacant land, home, commercial?)
-
Assessed value vs tax owed
-
Redemption risk (does it seem likely the owner will pay?)
-
Other liens or code violations
Use the Sarasota County Property Appraiser site and Clerk of Court to check deeper history.
3. Bid Strategically
You’ll bid the interest rate you’re willing to accept, and the lowest bidder wins. So if you bid 5% and win, that’s your return if the owner redeems the lien.
If they don’t redeem within two years, you may be eligible to foreclose and take ownership of the property.
4. Wait for Redemption or Move to Foreclosure
If the owner pays back taxes (which most do), you get your money back plus interest. If not, after two years you can apply for a tax deed, pay off any additional fees, and possibly get the property.
🛠️ Local Tips from the Ground
-
Vacant land and abandoned homes often come with higher risk but also higher potential for acquisition.
-
Avoid liens on properties with environmental issues or messy code violations.
-
Network with local investors and real estate professionals to share insight and avoid common traps.
-
Attend local property auctions and investor meetups—there’s plenty of opportunity here for collaboration.
⚠️ Risks to Watch Out For
-
You don’t get the property automatically—you just have a lien.
-
Some properties have mortgages or IRS liens that could complicate things.
-
If you don’t do your research, you could end up with worthless land (like swampland or an unbuildable lot).
-
Sarasota neighborhoods vary wildly in value and desirability—local knowledge is your biggest advantage.
Final Thoughts
Tax lien investing in Sarasota isn’t just for Wall Street sharks—it’s accessible, local, and can be highly profitable with a little education and due diligence. Whether you’re looking for passive income or hoping to snag a property for cheap, this is one of Florida’s most underrated investment strategies.
And if you're looking for help evaluating liens, property values, or putting together an investment strategy right here in Sarasota, I'm always happy to connect.
