Recently, I was approached by a friend of my wife's, and she said that she and her husband were making a lot of money bidding on properties that went up for sale in our area, at auctions like this one, and then reselling them (without flipping or otherwise improving them).
I believe this is a "Tax Deed Sale" but I don't know much about it.
My wife and I have some money we've earmarked for making investments, but this sounds like a lot of reward, and I don't understand the risks. In my experience, risk and reward are directly related, so if there's a lot of money to be made, there's a lot of inherent risk involved.
What kind of experience/knowledge should I have going into something like this? What are the risks involved in this type of sale, and how can I learn enough to know whether I'd be making a wise investment?