Make Up To 25% Return With Real EstateTax Lien Certificates

Are you tired of cd rates in the toilet and stocks that go all over the place?. Are you looking for a safe place to invest that is backed by the government, pays high returns and is secured by real estate? Then listen up because tax lien investing could be right up your alley!

A tax lien is simply a lien that is placed on real estate for the non payment of real estate taxes. In many states, the county government will sell the lien to the general public in order to balance their budget. The investor is issued a tax lien certificate that is backed by the property. The investor then collects any penalties that are owed by the taxpayer when they redeem the lien. The penalties in most states for tax certificates are high.

How high you ask? Is 24% a year high enough for you? Obviously, it varies by state, but that is the statute in Iowa. But what about risk? With a tax lien you either get a high rate of return on your investment or the property. That's a lot better than the bank cd's. By the way, guess who is one of the nation's largest investors in tax liens? Banks! So, why not cut them out of the loop and go straight to the source.

The best part about tax liens is the price. Nearly all are under $5000, with most being in the $200 to $1000 range, which is easily within reach of the average investor. Unlike many speciality investments, there are no special requirements or licenses required to invest in tax liens.

So, now that you know the basics, you need to find out how and where to get your hands on tax liens. Tax liens are sold one of three ways: at live auction, over the counter, or by internet auction.

Live auctions are generally held once a year in the county courthouse. You get a bidder number and the actual bidding process varies by state and local laws. Sometimes you bid down the rate, other times you bid up the price.

Another way to buy tax liens is over the counter, which is just a fancy way of saying mail in bidding. To buy over the counter, you simply call the county and get a list. Then just need to you pick out the property you want to bid on and send in a check. These are almost always at the full interest rate of the lien. In most jurisdictions, over the counter (or OTC) liens are the ones that did not sell at the auction. However, in some rural areas, counties have been known to sell tax liens exclusively over the counter.

The newest and most exciting trend in tax liens is internet bidding. The county holds an auction on its website (generally for about a week) or a third party website like Bid4Assets and the investor simply places a bid from the comfort of his home computer. How easy is that! No traveling or hassles required.

Now that you know the basics, what are you waiting for? Go learn your local regulations and buy some tax liens today!

If you want to invest in tax lien certificates, one of the first principles that you need to be aware of is redemption. A tax lien certificate is simply a lien that the county has sold to an investor for the delinquent taxes. The investor then waits for the property to "redeem," which simply means that the homeowner has paid off the tax lien with interest and penalties to the investor. If the homeowner does not pay off the tax lien within a specified period of time, called the "redemption period," then the investor has the right to foreclose on the property and potentially pick up a property at pennies on the dollar! So, from an investor's point of view, it's really win, win!

So, when could a redemption occur? It could occur the day after you buy the lien. It could occur weeks, months, or years later. It just depends on the situation.

Before you invest in tax lien certificates, you need to figure out the redemption period. This varies from state to state. Some states have very short redemption periods. Others have very long redemption periods. If you just want to get the very high interest rates (as much as 24%) that you can get from tax lien certificates, then visit states with long redemption periods. If you ultimately want to acquire dirt cheap property, then visit other states with shorter redemption periods.

Other states are more of a hybrid with regard to redemption periods. How can it be a hybrid? In Florida for example, you can foreclose on the property in as little as two years. However, you are not actually required to foreclose in Florida until the lien is seven years old. So, it really is the best of both worlds. If you want to keep letting the interest accrue, then you just let the lien sit. If you want to get the property, then you file a quick foreclosure after the two years.

During the redemption period, there may be pre foreclosure activities that you are required to do with your tax lien certificate. These could include giving the homeowner notice that you have the lien, filing court papers and giving notice in a newspaper and title searches. Don't worry too much about this stuff. It is usually handled by an attorney who will do these things on your behalf. In nearly all states, the attorney fees will be added to the total value of the lien and reimbursed with interest at redemption.

However, it's imperative that you understand your state and local laws extensively before you attempt to purchase tax lien certificates. In many areas, if you don't follow the pre foreclosure activities to the letter, then your lien may be declared invalid and you will lose your entire investment.

Like anything else in tax certificate investing, redemption is a concept that you will see over and over. With this short lesson, you learned what to do and what to look for regarding redemption. Now do your research and go take massive action!

Tax liens certificate investing can be extremely profitable and safe IF you know what you are doing. If you don't know what you are doing, you can lose your shirt. There are many books and courses on the market for tax lien certificates and I am proud to recommend Joanne Musa's Tax Lien Investing Secrets II.

Here are some of the things that your will be learning from this course.

• Where do to find out about tax sales


• How much will it cost


• How to get information on tax sale properties


• What to do once you buy a tax lien certificate or tax deed



• How to sure that you are not paying to much money for a tax lien certificate or tax deed



• How much money you can actually make at this



• How to register for the tax sale



• The exact forms you need and where to get them



• How to buy tax lien certificates or tax deeds online or through the mail



• How to profit from your tax lien



• How long it will take before you collect your profit



• How to clear the title to a property purchased from a tax sale



• Whether you need a lawyer, or if you can do everything yourself

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"I found the information that I was looking for"

I have been to many tax lien websites and paid hundreds of dollars trying to learn how to invest in tax liens without making costly mistakes, but I still didn't get the information I needed. Then I found taxlienlady.com and found the information that I was looking for. The Tax Lien Lady is very straightforward and doesn't give you the fluff about getting rich quick. I feel so blessed to have the information from The Tax Lien Lady to confidently invest in tax liens.

Anna Long-Middleton, New York

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