How to win an auction


Tax Lien Investing - Secrets of the Wealthy

Most people have not heard of tax lienyou won't have to wait a whole year to earn
investing. Yet there are millions of peopleyour 15% interest. If the property owner pays
across the country earning safe, secure, andoff their taxes in one month, you'll still
most importantly, high percentage interestearn that same 15% interest, but you'll get
returns by investing in tax lienit one months time. Freeing up your money to
certificates. To put it simply, investing ininvest again. Lets say you take that money,
tax liens is an easy, high profit way toand each month invest in a tax lien
invest in real estate, without needing largecertificate and get paid off right away.
sums of money to do it.So what are tax lienThat's 15% interest, 12 times, giving you a
certificates?Each year property taxes are duefinal return of 180% over the period of the
on all properties. The local government useswhole year. Because interest rates are always
the money from property taxes to pay forcalculated over the period of one year, this
various things in the community. If an owneris what's called your effective return on
doesn't pay their property taxes, theinvestment. This is why investors love tax
government still needs that money to be ablelien investing. In a state like Texas your
to run their county effectively! So what's aeffective return on investment can be up to
government to do? They levy a tax lien300%!Examining the alternativesHere are some
against that property and auction it off at aalternative investing options that the
tax lien sale. An investor, YOU, willmajority of americans invest in. Included
purchase that tax lien with the understandingwith them is an average interest rate and the
that you will earn a certain percentagedegree of safety of the investment.Savings
interest rate. When the owner of the propertyaccount  -  1%  -  safe
finally pays off their taxes(plus penalty
fees), the county then cuts a check to theMoney  market  -  1-2%  -  safe
investor for the principle amount invested,
plus any interest or penalty fees accrued.CDs - 1-4% - safe(interest rate depends on
The county makes out because they get thelength  of  CD
money they need to run things, the home owner
or business makes out because they are givenStock market - average growth 11% - unsafe,
more time to pay off their taxes, and thepercentages  vary  wildly  from  year to year
investor makes out because they just earned a
lot of money without really doing much atTax lien certificates - 5%-300% - Safe.
all!Why should I invest in tax lienGovernment run. Enforced by state law. Fixed
certificates?SafetyTax liens are sanctionedinterest rates.The ultimate win/win
and run by the government. Your investment issituationSo what happens if the owner doesn't
protected by state law and secured by actualpay off their taxes? Well in many states you
real estate! What other kind of investmentwould initiate a foreclosure on the property.
option provides that kind of backing? Take aThe property gets auctioned off at a tax deed
look at it from the other end. People do NOTsale, and as the tax lien certificate holder,
want to lose their homes. So odds are they'llyou get paid off first. But in other states
pay off their taxes, thus paying you off. Andthe property is signed over to you free and
if they don't...you just may end up with aclear! That's right, your small investment
free property.Minimal CompetitionThe greatgeared to earn 15% just earned you a free
thing about tax lien investing is that, forhouse with which you can do as you please.
the most part, it's a completly unknownLive in it, rent it out, sell it, whatever
investing option. Most people think thatyou want.ConclusionSo why should you invest
stocks, bonds, mutual funds, CDs, moneyin tax lien certificates? Because it simply
markets, and traditional real estatedoesn't make sense not to. If you'd like to
investing are the only ways to invest theirlearn more about the ins and outs of tax lien
money. So what you have is a very smallcertificates or specifically about tax lien
number of people "in the know" making tons ofauctions, more detailed information is
money in an extremely low risk form ofavailable.Gregory Nirshberg owns and operates
investing.High Return on InvestmentYourTax Lien Investing Resource. A website
return on investment will vary largelydedicated to providing free quality
depending on what state and county you areinformation about tax lien certificates and
in. But to give you a rough idea, interestthe tax lien investing process.With analysis
rates will vary from about 5% to 25%. Now,of tax lien auctions, tax deed sales, and
given how safe and easy this is, these kindeven tax lien investing tips for the
of interest rates alone would be worth thenewcomer.
investment. But there's more. In most cases



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