Tax lien investing offers one of this nation's safest most secure investments. According to books of law that statement is considered puffery. But let me explain why I make that statement to begin this post. I've invested in 401k accounts, the stock market, etc. and they all can be excellent investments. What I don't like about these strategies, though, is you never know what your return will be. My father-in-law has contributed to a few 401k accounts for over 25 years. He had a lot of money built up and his retirement looked near. He was able to control where his money was invested and averaged about 12% each year. Not bad. Until this year and he lost half of his total balance. That hurts badly.
When you begin tax lien investing, you know what your return will be on every investment because every investment's rate of return is state mandated. The only way the return changes is if you bid down the interest rate when buying at the auction. But you don't always have to buy at the auction, which secures the maximum rate.
So the way it works is you research a list and find tax lien properties that meet your criteria, contact the county, and buy the lien. You then wait for the property owner to pay the county back the taxes owed plus interest and penalties accrued to that point. Once that happens the county writes you a check for the amount you invested plus interest and penalties accrued to that point. Once you get your money back you turn it right back into another lien that way you continue to make money on your money.
It may seem pretty simple but it's kind of tricky when getting starting. Like anything new there are pitfalls and a learning curve. That's where we come in. We've fallen in those pits and we don't want you to have to do that, too.
No Risk Investor is the ultimate resource and tool for investing in tax liens, tax deeds, and real estate strategies for investors all over the world. No Risk Investor takes incredible pride in its ability to help students take action, get into properties, and begin the journey to financial freedom. No Risk Investor provides county lists, property lists, online auction lists, comprehensive training and education, an auction calendar, and online auction center, an investor community and much more for its members.
