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Essentially, you're lending money to the property owner, and in return, you receive a certain interest rate. This interest rate is typically set by the state and can often be quite attractive, sometimes significantly higher than what you might get from traditional investments like savings accounts or bonds. If the property owner doesn't pay their taxes (and, by extension, the tax lien) within a specified redemption period (again, this varies by state), you, the investor, have the right to foreclose on the property. This means you could potentially end up owning the property, free and clear, after paying off the outstanding taxes and any associated fees. Pretty cool, right?
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