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The Exciting Opportunities In Tax Lien Investing Today
Investing in tax liens began in the United States soon after the country was established. A tax lien is simply an obligation that the local government (county, city or other local taxing authority) places on real estate if the local property taxes are not paid. A tax lien investor buys a tax line certificate from that local government for the amount of the delinquent taxes, giving the investor a return of all of the original investment plus interest when the delinquent taxes and interest are ultimately paid on the property. If those delinquent taxes are not paid the tax lien investor has a lien on the property that allows that investor, after a legal process regulated by State law is executed, to gain ownership of that property.
The end result is that when investing in tax liens you either get all your original investment returned plus interest or you get the property at a cost of the unpaid taxes and fees. In summary, every property is taxable, this property tax is due at a minimum of annually. If the property owner fails to pay the tax, the county sells a tax lien certificate to any investor who will pay the taxes.
Tax lien investing is one of the safest, most secure and predictable investments available in the USA today and can yield an interest rate of up to 36% depending upon the state where you invest. Investing in tax lien certificates is even available to foreign investors, from Canada, Europe, almost anywhere in the world. The secrets to success investing in tax liens is to only buy tax lien certificates on properties where the property that backs the tax liens are of significantly higher value than the tax lien certificate. The result is that if your goal is a high yield passive income there is a 95% or better chance that the property owner will pay the taxes and not lose the property to you for just the unpaid taxes; you get all your investment back plus interest.
The whole process is administered by the local government, with little or no additional effort on your part. If your strategy is to get a property, for pennies on the dollar it's possible to get a property worth many times your investment, giving you a large profit when you sell the property. Successful tax lien investors usually pick one strategy and stick with it, different strategies require a working knowledge of how the process works.
About 95% of all tax liens investments result in the investor in tax lien certificates getting all the original investment back plus interest, there is always a possibility that the delinquent taxes remain unpaid and the tax lien investor will get possession of the property. Possession may be more work and require more knowledge to deal with selling a property compared to simply getting a high return on a tax lien certificate investment. The question is; are you willing to put in more work to sell a $70,000 property in which you only invested $5,000 and make a substantial profit?
Ted Thomas began showing others the secrets of success investing in tax liens over 25 years ago. Over that time Ted Thomas has become known as America’s Tax Lien Certificate and Tax Deed Authority, he has shown thousands of people how to profit in the lucrative business of investing in tax liens certificates and tax deeds. In the video linked below Ted introduces an investor to the process, with the goal of a passive high yield secure investment: