In this episode of "Real Deal Investing", hosts Jerron Kelley, a seasoned real estate attorney, talk with Phil Kessler of the Property Onion Academy. Phil introduces tax lien and tax deed investing, focusing on Florida's tax-defaulted properties. 

Kessler explains the basics: tax liens are essentially loans to property owners who haven't paid their taxes, allowing investors to earn interest over a set period. For instance, if a homeowner in Florida fails to pay property taxes, investors can buy a lien, earning up to 18% interest. If unpaid after two years, investors can initiate a foreclosure through a tax deed sale, where the property may be auctioned to recoup the lien and interest.

Tax deeds, on the other hand, grant direct ownership of a property through foreclosure after unpaid taxes. During auctions, existing mortgages and certain liens are wiped clean, except government liens. Kessler emphasizes that tax liens offer a lower-risk entry into real estate investing because they generally represent a small percentage of the property’s value. This relatively safer, high-yield investment option, traditionally dominated by hedge funds, is now more accessible to individual investors.

Overall, Kessler stresses the importance of thorough research and strategic bidding. He stresses that tax lien and tax deed investments can offer potentially profitable returns but require careful management to mitigate risks.