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| 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):
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 |
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