Invest in Tax Liens & Tax Deeds in San Diego Using Your Self-Directed IRA

Tax lien and tax deed investing is a powerful alternative investment strategy that allows investors to acquire real estate-secured debt or property rights at a fraction of retail value. Many investors in San Diego are now using Self-Directed IRAs to invest in tax liens and tax deeds for tax-advantaged growth and long-term wealth creation.

At Independent IRA, we help you use your retirement funds to invest in tax liens and tax deeds legally, safely, and efficiently, while ensuring full IRS compliance.

What Are Tax Liens? (San Diego / California)

A tax lien is a claim placed by the county when property owners fail to pay their property taxes. Investors can purchase tax lien certificates, earning high interest rates until the debt is repaid.

✔ Tax Lien Investment Benefits:

• High potential interest returns
• Secured by real estate
• Shorter-term investment timeline
• Predictable county-structured rules
• Fully allowed inside a Self-Directed IRA

Although California does not issue tax lien certificates like some other states, San Diego investors often purchase out-of-state tax lien certificates using their IRA. Independent IRA supports all U.S. lien jurisdictions.

What Are Tax Deeds? (California-Based Investing)

California—including San Diego County—is a tax deed state, meaning that when property taxes remain unpaid, the county may auction the property itself, not just the lien.

✔ Tax Deed Investors Can:

• Acquire real estate at below-market pricing
• Use IRA funds to bid at county auctions
• Buy property outright for investment or resale
• Generate rental income inside their IRA

With the right approach, San Diego tax deed sales can provide significant opportunities for long-term wealth building.

Using Your Self-Directed IRA for Tax Liens & Tax Deeds

A Self-Directed IRA allows you to use retirement funds to purchase tax liens or tax deeds—while keeping all profits tax-deferred (Traditional IRA) or tax-free (Roth IRA).

✔ IRS Allows Tax Lien & Tax Deed Investing

Your IRA can legally invest in:

• Tax lien certificates
• Tax deed auctions
• Redemption rights
• Tax foreclosure properties
• Over-the-counter liens
• Tax sale assignments

Independent IRA handles all custodial requirements and ensures your transaction structure remains compliant.

Benefits of Investing in Tax Liens & Tax Deeds in San Diego

✔ High Return Potential

Tax liens often offer interest rates from 5%–18% or more, depending on the state.

✔ Real Estate–Secured Asset Class

Your investment is backed by the underlying property.

✔ Low Entry Cost

Tax lien certificates often start as low as a few hundred dollars.

✔ Real Estate Acquisition Opportunities

If a lien is not redeemed, investors may have the chance to acquire the property through foreclosure.

✔ Tax-Advantaged IRA Growth

All profits, interest, and proceeds stay inside the IRA tax-advantaged.

✔ Diversification Beyond Traditional Investments

Tax liens and deeds offer low correlation to stock market volatility.

San Diego Tax Deed Sales: What You Need to Know

Because California is a tax deed state, San Diego County auctions off properties with delinquent taxes.

Common types of San Diego tax deed opportunities:

• Single-family homes
• Multi-family buildings
• Vacant residential land
• Commercial properties
• Industrial lots
• Raw land parcels

These properties are sold through public auction, and your IRA can participate by following proper purchasing procedures.

How Tax Lien & Tax Deed IRA Investing Works

1. Open a Self-Directed IRA with Independent IRA

• Choose Traditional, Roth, SEP, or SIMPLE.

2. Fund Your Account

• Rollover from 401(k)
• Transfer from existing IRA
• New contributions

3. Identify Tax Lien or Tax Deed Investments

• San Diego County & other U.S. auction lists are publicly available.

4. IRA Purchases the Lien or Deed

Title must follow IRS rules:

Independent IRA FBO [Your Name] IRA

5. Manage the Investment

• Interest payments return to the IRA
• All expenses must be paid by the IRA
• If property is acquired, it becomes an IRA-owned asset

Independent IRA assists with documents, processing, and compliance.

IRS Rules for Tax Lien & Tax Deed IRA Investing

• Prohibited Actions

To avoid IRS penalties, you CANNOT:

• Purchase liens or deeds on property you or family own
• Personally work on a property acquired through a deed
• Use or live in any IRA-owned property

Pay expenses personally (must be paid from the IRA)

Allowed Actions

• Partnering your IRA with others
• Bidding at auctions through your IRA
• Selling liens or properties for profit
• Earning tax-advantaged interest

We ensure your investment meets all IRS guidelines.

 Types of Tax Lien & Tax Deed Strategies for IRA Investors

✔ Short-Term Lien Interest Income

Earn high rates when owners redeem their liens.

✔ Tax Deed Foreclosure Acquisitions

Acquire real estate well below market pricing.

✔ Rental Income from Deed-Acquired Properties

Collect rent tax-advantaged inside the IRA.

✔ Out-of-State Tax Lien Diversification

Explore top-performing lien states like:

1. Florida
2. Arizona
3. Texas (hybrid)
4. Illinois
5. Indiana
6. Colorado

✔ Over-the-Counter Liens

Purchase unbid liens for higher ROI potential.

Why San Diego Investors Choose Independent IRA

• Decades of Self-Directed IRA experience
• Fast processing and trusted custodial oversight
• Full compliance guidance for tax lien and deed investing
• Transparent pricing
• Support from purchase to redemption or sale
• Expertise in alternative assets and real estate-based IRA investments
• Independent IRA makes Tax Liens & Tax Deeds investing simple, safe, and fully compliant.