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Investing In Tax Lien Certificates

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Earn Up To 25% Interest Or More Investing In Tax Lien Certificates

When a property owner fails to pay their property taxes, the county will place a tax lien on that property. Investing in tax lien certificates is considered pretty safe because your returns are guaranteed by the government. The government is in constant need of funds to operate (as any tax payer knows) and rather than having to wait or chase down these property owners, they sell these tax liens to individual investors to keep the coffers full. Since this helps the local governments, they reward the investors well with double digit interest rates and after 1 year they can tack on penalties that may push your returns to over 25%!

Did you know?
You can buy tax liens through your self directed IRA and defer income taxes for many years!

Institutions like banks and insurance companies as well as wealthy individuals have been investing in tax lien certificates for years but they were relatively unknown to the general public for many years. I suspect a couple reasons for this are that the wealthy don't care to share their secrets and the government has never been very effective at promoting it's programs.The idea of investing in tax lien certificates has been popularized over the last several years by financial educators and authors. The 16% Solution: How to Get High Interest Rates in a Low-Interest World with Tax Lien Certificates, Revised Edition is a popular book and great read. If you know nothing about investing in tax lien certificates, I would highly recommend this book.

Getting Started Investing In Tax Lien Certificates

Investing in tax lien certificates takes some research and due diligence. Learning where and how to buy tax lien certificates is a mater of knowing who to contact and what questions to ask.

Some other FAQ's are: