Investment Strategy #13: Earn government-guaranteed interest from tax lien certificates

Many cities and local governments have auctions or sales that permit you to purchase property tax liens. A property tax lien results when a real estate owner – usually a homeowner – doesn’t pay property tax.

– If you purchase the lien, you pay the delinquent taxes
For this, you receive a certificate entitling you to your money back, plus interest, from a delinquent property owner. If the owner doesn’t pay you within a certain time periods, usually two or three years, you take over the property.

– Be prepared to keep paying property taxes
Tax-lien investors need to keep paying the taxes until the certificates are redeemed
– Tax lien investments are not liquid
During the holding period, while you’re paying the tax until the certificates can be redeemed, there may be difficulty finding a buyer if you want to cash out.

– Other expenses may be involved
You may need to pay legal fees related to foreclosures and title searches. Perhaps most serious, you may pay the taxes for two or three years and wind up owning questionable property. So check on the property as thoroughly as possible before buying a tax lien.

– Experienced tax-lien investors earn returns or more than 20% per year

Connect with us today to see how you can earn government-guaranteed interest from tax lien certificates!

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