Tax lien investing has become a hot topic. If you stay up past 10pm, you will surely come across an infomercial talking about it. Let me answer a few basic questions about tax lien investing. The following post is not sales fluff, just the information you want.
WHAT IS TAX LIEN INVESTING?
Every property owner across the United States is required to pay property taxes. The county uses these taxes to fulfill its obligations including building roads, sustaining fire and police departments, maintaining and building schools, etc. When property owners fail to pay property taxes the county is not able to fulfill its obligations. In order to stay afloat, the county places a lien on the property and offers a tax lien certificate to investors. The county places a state-mandated interest rate on the certificate that the investor receives, and the certificate is insured by the real estate for which the lien was placed. The investor gets his/her money back plus interest, or he/she has access to the property.
HOW ARE TAX LIEN CERTIFICATES SOLD?
Tax lien investing is offered in essentially two ways. The first takes place at a live auction. The county is required to make public notice of all tax lien certificates to be auctioned. The county is also required to auction all lien certificates at a public auction. This can take place at the county building, a law firm, or online. Many counties are moving to an online auction. The second way to invest in tax lien certificates is to buy after the auction. Depending on the county, there may be tens of thousands of liens auctioned off and MANY are left over. The investor can avoid the competition and invest through the county after the auction. We actually provide these lists.
DO ALL STATES SELL TAX LIEN CERTIFICATES?
About 50 percent of the United States sell tax lien certificates. The other half skip the selling of the tax lien, wait, foreclose on the property, then sell the property to investors.
Tax lien investing is a fantastic strategy offering safe, large returns. It is simple to do and is made much easier once educated.
No Risk Investor is the ultimate resource and tool for tax lien, deed, and real estate 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.
