My First Redemption Came in 3 Months, Not 180 Days - Here is Why That's Good
About this article: “Marcus” is TaxLienSimple's educational narrator. First-person stories and dollar examples are illustrative scenarios written to explain real tax-sale concepts — they are not the personal trading history of a specific investor. Rate and legal information is sourced separately to official statutes and government records (see About and each guide's citations).
TL;DR
- →In Texas the redemption premium is flat, not prorated - a 3-month redemption pays the exact same 25% as a 179-day one.
- →Fast redemption just means your capital comes back sooner, annualizing to a much higher effective return.
- →You cannot control when an owner redeems. You can control how fast you redeploy the capital once they do.
Expected the Full Window, Got 3 Months
$2,000 purchase, 25% flat premium, redeemed in 3 months instead of using the full 180-day window: I still collected the full $500. It doesn't prorate down for redeeming early. Annualized, a $500 return on $2,000 in 3 months works out to roughly 100% on an annualized basis - dramatically better than if it had taken the full 6 months.
How Redemption Timing Actually Works Here
I now buy across multiple counties with a mix of homestead and non-homestead properties, knowing the premium is fixed regardless of timing - what varies is how fast I get my capital back to redeploy.
The Best Defense Against a Slow Redemption
Buy properties with a judgment amount that's a small fraction of the appraised value. Owners with real equity at stake redeem faster to protect it.
Marcus Field Notes
Keep a list of target counties ready so idle capital doesn't sit long between redemptions. TaxLienSimple sends email alerts for deadlines.
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