What is a Tax Lien?

The simple answer to what tax liens are is:  it’s an obligation a delinquent tax payer has to the local government (typically a county or other local municipality) to pay past due taxes on property.  These tax liens are offered for sale to investors, typically at a government tax lien certificate auction, by law the local government must collect the money needed to provide local government services from each property owner.  For the investor this system provides a safe, secure and predictable investment in government issued tax lien certificates with maximum annual interest rates, set by the state government, which can be 18% or more annually.
In this video Ted helps answer the question: “What is a tax lien?”

When investing in tax lien certificates you are making an investment secured by the real estate on which the taxes are due.  If the delinquent taxes are not paid you can get possession of the property for only the past due taxes and fees… basically for pennies on the dollar!  That means that if you bought a tax lien certificate and the property taxes are not paid, you could end up owning the property for just the back taxes and fees owed the local government.

So, what is a tax lien?  It is considered by many as the safest investment you can make.  Here are some unique features about tax lien investing that benefit the investor in tax lien certificates:

1. Tax liens are sold in about half of all the states in the USA; the other half sell tax deeds.

2. The laws and regulations regarding the sale of tax lien certificates are defined by state law and the sales process is administered by local government.

3. State laws set the maximum interest rate a tax lien certificate may pay, which can be 18% annually or more, depending upon the state law.

4. There are no commissions payable to brokers when buying tax lien certificates or when they are paid off (redeemed) by the delinquent tax payer… no extra fees paid to a middleman, the investor gets back all the investment and all the interest.

5. About 95% of all tax lien certificates are paid off within three years of being issued.

6. Tax lien certificates are secured by real estate.  That means if that tax lien certificate is not paid off you can own the property for only the cost of the unpaid property taxes and fees after a foreclosure process.

When thinking about the question: “What is a tax lien?” investors in tax lien certificates take two approaches:

1. Obtain a high interest rate passive investment, where the tax lien investor gets all the original investment returned plus a high rate of interest when the tax lien is paid off, or

2. A strategy of investing in tax liens with a likelihood of not being paid off, resulting in the tax lien certificate buyer owning the property for pennies on the dollar value of the property.

Traditionally most tax lien certificates and tax deeds sales were held at a public auction.  Today many of these government auctions of tax lien certificates and tax deeds are done on-line.  Investors can buy tax lien certificates from almost anywhere in the world using the internet.

After over 20 years of instructing others on the secrets to successfully  investing in government auctioned tax lien certificates and tax deeds, Ted Thomas has presented at hundreds of wealth building seminars, held over a hundred workshops and amassed thousands of hours of recorded material that he has edited into a comprehensive learning system.  This system includes presentations from Ted Thomas and many other experts with first-hand personal experience investing in tax liens and tax deeds. 


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Dan Nicholson
Dan Nicholson
06:29 14 Jun 17
Ted Thomas' tax sale training is among the best real estate courses I have experienced. It is very thorough, and teaches everything a newbie needs to know to get started quickly and to make money very safely with high yielding tax-foreclosed properties. There are approximately 3,000 tax foreclosure liens and deeds sold daily throughout the USA, so the opportunity is virtually unlimited. Ted's website delivers a ton of great information - tax sale calendars, video and text instruction, and instructive online instruction plus a Q&A session five days each week. A three-day intensive workshop with Ted and his experienced coaches presenting top notch instruction really clarifies any questions and concerns about Tax Foreclosures investing. Students can re-attend this boot camp each time it is offered at no additional charge. Ted definitely delivers much more than any other real estate Guru I know of. I strongly recommend his course. There is definitely a lot of money to be made with tax liens and tax deeds.
Verena Brand
Verena Brand
22:34 11 Jul 17
Ted Thomas, his office, and his coaches are giving a lot of value. The training online and his 3-day auction preparation workshops are complementing each other and worthwhile if you want to learn what you need to know to invest in Tax Lien Certificates and Tax Deeds successfully. His coaches are all actively investing and give you insiders' tips for Tax Sales. During the 3-day live event, I learned important things such as: How to increase your credit. How to protect your wealth. How to prepare yourself for a live and online auction. What land contracts are and how to use them. How CEO space can help you with your business. 13 different ways of selling a tax deed. In conclusion, I highly recommend Ted Thomas and his team if you plan to invest in Tax Deeds and Tax Liens.
Louie Pinto
Louie Pinto
13:32 08 May 17
I met Ted Thomas many years ago at an event. My wife and I were blown away with his knowledge and professionalism. He showed us a way that we could easily invest in safe and secure tax liens and deeds, and make some consistent returns. Well 3 years later, This journey has been amazing. Not only has my wife and I made money with Ted, His customer service team has been extraordinary. They make time to answer questions and I feel they really want you to succeed. His live events are priceless, since he brings in coaches and other successful students to share their expertise.Thanks again Ted, Kim, Bill W, Bill B, Ashley, Lance, Crystal and the rest of the team, that are helping my wife and I achieve financial freedom.
Marco Simon
Marco Simon
14:31 06 Jun 17
When I started this program, I have to admit, I was skeptical and quite frankly a little worried about being able to do this while still working full-time. I am so glad that I took the leap, I just went down to Florida a few weeks ago to the 3 day training and I feel confident that not only can I do this, I can succeed and possibly retire much earlier than anticipated. I am planning to attend my first auction in just a few weeks and I can't wait to put all my new skills to use and start making money! Thanks Ted and I really appreciate all the extra effort you and your team put into teaching me how to do this!
Bill Roth
Bill Roth
04:07 03 Jun 17
Ted Thomas"s program teaches you everything you wanted to know about purchasing Tax Deeds and Tax Liens for pennies on the dollar. I have been with Ted's program for a long time and always learn something new every time I attend one of his workshops. I have purchased multiple tax liens in Florida all at 18% and several properties in Michigan at tax deed auctions. I live in New Mexico where all liens and mortgages stay with the property, so every time I travel I am looking to using my training from Ted to purchase more liens and deeds. Anytime I need assistance I can call Ted's office and talk to his wonderful staff where I receive help anytime I need it. This is a proven program where you can make money from home spending as much time as you want. Bill Roth, Albq. N.M.
Douglas Adsit
Douglas Adsit
23:59 24 May 17
Having been an entrepreneur for over 30 years, the most important thing to me is working with systems that are proven but that allow for business creativity, so that you do not get stale or robotic. Ted's systems are strong and there is plenty of room for innovative results and exit strategies. The presenters were down to earth, smart and genuinely shared their successes. The potential to succeed is very high.
John Mills
John Mills
15:14 12 Jun 17
Ted Thomas provides real world training for those who want to increase their safe money rate of return through owning tax certificates or by buying the actual properties through tax deeds. I don't think anyone has more experience or teaches the material better than he does.My associate and I attended one of his 3 day events in Florida in Feb 2017 and got a great deal out of it.
Fred Wiedemeyer
Fred Wiedemeyer
14:03 12 Oct 17
Highly informative and straightforward workshop on tax deeds and liens by Ted. His admin staff - namely Ashley and Kim - are absolutely awesome!
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