Safe Investments: Tax Lien Certificates

In most states, if a tax lien on personal property is not paid within a specified time (and after several notices are generally given), the property may be seized. Seized property may be sold at foreclosure sale. On real property, one of two methods may be used: either the property may be seized and sold (a tax deed sale), or in some states the tax lien may be offered to investors (in the form of a tax lien certificate) with an accompanying right for the investor, after a specified period of time, to institute foreclosure proceedings (a tax lien sale).


What does this mean for the investor?

1. Tax Lien Certificates provide a state guaranteed interest rate ranging from 12% to 50% per year. This is, arguably, the safest, highest return investment opportunity available.

2. Generally the investment is backed by real property, which the investor can seize in the event of non-payment.

3. Because of the number of states offering tax lien certificates, and the wide variety of laws, the wise tax lien investor will educate himself (or herself, as the case may be) on the ways the various states administer and enforce their tax lien laws.

4. Tax Lien certificate investment is not for people who are afraid to manage their own money. The tax lien investor must be diligent to watch and learn (among other things):


A. Changes in state laws where they may invest.
B. The safety of their investment in each state, as defined in that state's laws.
C. The availability of specific real estate for the safe tax lien investment.
D. The actual payment of the certificate by the property owner.
E. The time in which the investor can foreclose on the property.
F. The legal rights you have and do not have to take action to collect on the money you are owed.

To learn more about how to use tax lien certificates as a safe investment, I recommend the following educational and property location resource:

"Tax Liens Made Easy": http://wwww.moredetails.info/safeinvestments1

They've really streamlined the property location and education process.

By David E. Brumbaugh

Home | Articles

 !    Recommendation

To learn more about how to use tax lien certificates as a safe investment, I recommend the following educational and property location resource:

"Tax Liens Made Easy"

 !    The Contrarian View

In finance, a contrarian is one who attempts to profit by investing in a manner that differs from "conventional wisdom". A contrarian considers consensus opinion to be wrong. While FOREX investment is considered risky, there is a level of safety in that you are always liquid and investing in "cash".

Here's a free report (PDF) that explains the Top 10 mistakes FOREX Traders Make.