| Most people have not heard of tax lien
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| | rates alone would be worth the
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| investing. Yet there are millions of
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| | investment. But there's more. In most
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| people across the country earning safe,
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| | cases you won't have to wait a whole year
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| secure, and most importantly, high
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| | to earn your 15% interest. If the
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| percentage interest returns by investing
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| | property owner pays off their taxes in
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| in tax lien certificates. To put it
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| | one month, you'll still earn that same
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| simply, investing in tax liens is an
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| | 15% interest, but you'll get it one
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| easy, high profit way to invest in real
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| | months time. Freeing up your money to
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| estate, without needing large sums of
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| | invest again. Lets say you take that
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| money to do it.So what are tax lien
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| | money, and each month invest in a tax
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| certificates?Each year property taxes are
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| | lien certificate and get paid off right
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| due on all properties. The local
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| | away. That's 15% interest, 12 times,
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| government uses the money from property
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| | giving you a final return of 180% over
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| taxes to pay for various things in the
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| | the period of the whole year. Because
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| community. If an owner doesn't pay their
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| | interest rates are always calculated over
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| property taxes, the government still
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| | the period of one year, this is what's
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| needs that money to be able to run their
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| | called your effective return on
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| county effectively! So what's a
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| | investment. This is why investors love
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| government to do? They levy a tax lien
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| | tax lien investing. In a state like Texas
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| against that property and auction it off
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| | your effective return on investment can
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| at a tax lien sale. An investor, YOU,
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| | be up to 300%!Examining the
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| will purchase that tax lien with the
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| | alternativesHere are some alternative
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| understanding that you will earn a
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| | investing options that the majority of
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| certain percentage interest rate. When
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| | americans invest in. Included with them
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| the owner of the property finally pays
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| | is an average interest rate and the
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| off their taxes(plus penalty fees), the
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| | degree of safety of the
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| county then cuts a check to the investor
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| | investment.Savings account - 1% - safe
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| for the principle amount invested, plus
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| | Money market - 1-2% - safe
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| any interest or penalty fees accrued. The
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| | CDs - 1-4% - safe(interest rate depends
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| county makes out because they get the
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| | on length of CD
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| money they need to run things, the home
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| | Stock market - average growth 11% -
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| owner or business makes out because they
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| | unsafe, percentages vary wildly from year
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| are given more time to pay off their
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| | to year
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| taxes, and the investor makes out because
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| | Tax lien certificates - 5%-300% - Safe.
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| they just earned a lot of money without
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| | Government run. Enforced by state law.
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| really doing much at all!Why should I
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| | Fixed interest rates.The ultimate win/win
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| invest in tax lien certificates?SafetyTax
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| | situationSo what happens if the owner
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| liens are sanctioned and run by the
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| | doesn't pay off their taxes? Well in many
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| government. Your investment is protected
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| | states you would initiate a foreclosure
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| by state law and secured by actual real
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| | on the property. The property gets
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| estate! What other kind of investment
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| | auctioned off at a tax deed sale, and as
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| option provides that kind of backing?
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| | the tax lien certificate holder, you get
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| Take a look at it from the other end.
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| | paid off first. But in other states the
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| People do NOT want to lose their homes.
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| | property is signed over to you free and
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| So odds are they'll pay off their taxes,
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| | clear! That's right, your small
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| thus paying you off. And if they
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| | investment geared to earn 15% just earned
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| don't...you just may end up with a free
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| | you a free house with which you can do as
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| property.Minimal CompetitionThe great
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| | you please. Live in it, rent it out, sell
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| thing about tax lien investing is that,
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| | it, whatever you want.ConclusionSo why
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| for the most part, it's a completly
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| | should you invest in tax lien
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| unknown investing option. Most people
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| | certificates? Because it simply doesn't
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| think that stocks, bonds, mutual funds,
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| | make sense not to. If you'd like to learn
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| CDs, money markets, and traditional real
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| | more about the ins and outs of tax lien
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| estate investing are the only ways to
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| | certificates or specifically about tax
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| invest their money. So what you have is a
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| | lien auctions, more detailed information
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| very small number of people "in the know"
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| | is available.Gregory Nirshberg owns and
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| making tons of money in an extremely low
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| | operates Tax Lien Investing Resource. A
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| risk form of investing.High Return on
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| | website dedicated to providing free
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| InvestmentYour return on investment will
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| | quality information about tax lien
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| vary largely depending on what state and
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| | certificates and the tax lien investing
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| county you are in. But to give you a
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| | process.With analysis of tax lien
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| rough idea, interest rates will vary from
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| | auctions, tax deed sales, and even tax
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| about 5% to 25%. Now, given how safe and
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| | lien investing tips for the newcomer.
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| easy this is, these kind of interest
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