I Assumed Every State Worked Like Texas - Here is What It Cost Me
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
- →Texas's 25% flat premium is state law, uniform across every Texas county. I assumed every state worked the same way.
- →I bought a lien certificate in a different state expecting a flat premium and got a bid-down interest rate instead - closer to 11%, prorated.
- →Thirty minutes reading a state's actual statute before you bid beats assuming it works like the last state you invested in.
The Assumption That Cost Me
After two years buying Texas tax deeds, I got comfortable with one number: 25% flat, no matter when the owner redeemed. So when I bought my first certificate in a lien-certificate state, I assumed the same math applied. It doesn't. That state uses a bid-down auction - investors bid the interest rate down from a statutory ceiling, and mine landed at 11%, accruing daily, not a flat premium. The difference between what I expected and what I got was real money.
Redemption Periods Are Just as Varied
Texas gives 180 days for most property, 2 years for homestead. Other states run 1 to 3 years at a bid-down rate. None of these numbers transfer from state to state. Always check the specific statute before bidding, not your last state's playbook.
My Three-Step State Research Process
Before I buy anywhere new: confirm whether it's a lien, deed, or redeemable-deed state; check the actual rate structure (flat premium vs. bid-down interest); and check the redemption period. Use the State Comparator to see the differences side by side before you assume anything.
Marcus Field Notes
Call the county clerk before every new county, in every state. Ask about the bidding method, the rate structure, and the redemption process. Never assume this state works like the last one.
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