One of the best kept high yield investment secrets is called
Tax Lien Certificates. You can earn 16%, 18%, as high as a 50% return on your investment opportunities and start with as little as $75.00 in some cases (read also about money investment).Local governments use property taxes
to pay for daily services such as police and fire departments, welfare and
teachers. You can imagine what will happen if the budget for these and many
other services ceased. Ambulances and county medical facilities would shut
down, public education grammar, junior high and high schools would close. You
get the picture. This is why local county governments are authorized to sell
tax lien certificate to investors like you and me. The tax lien is created when
the property tax on any piece of property is not paid. Every piece of property
is assessed a tax based on its value and when it is not paid the county attaches
a tax lien against the property. Each amount of the tax lien may vary, but the
county also attaches an interest rate to the lien. This interest rate has to be
high enough to attract investors, who purchase the lien at the assigned
interest rate and then own the lien against the property. The property owner
either pays the lien and the interest to the county or forfeits the property.
If he pays the lien the money is collected by the county and paid back to the
lien holder, you, investment plus interest. If the lien is not paid you may
initiate a foreclosure process through the county where the property is located
and gain ownership of the property for the price of the tax free and clear of
all other encumbrances. That includes all mortgages, mechanics liens and the
like. It might interest you to know that 97% of tax liens pay off within twenty
four months (additional information about investment opportunities).
There are over 3000 counties in the US and all of
them run a little differently, so you would have to get in touch with the
county government where the property is located to get the particulars. I would
suggest you start with the county you live in. Tax lien certificates will be
the safest easiest, most profitable high
yield investment you will ever buy. When ever I mention it most people
invariably ask me “why isn’t everybody doing it then?” Well, the honest answer
is “I don’t know”. My best guess is ignorance; most people just don’t know its
available. It is not well publicized; and banks and brokerage houses have no
incentive to tell you about it. My second guess is fear; many people wait for
the endorsement of the masses to feel safe to move forward with anything. My
best advice to you is CHECK IT OUT! All it will cost you is a phone call and a
little of your time (additional investment opportunity).
Here’s what’s next. Contact the Tax
Collector or Treasurer in your county (or the closest well populated county to
you) and find out the answers to the following questions:
- When will the county be conducting the next Tax Sale?
2. Where will the sale take place? (address
suite or room number, and time)
3. How can I get a list of Tax Lien Property
to be auctioned? (if auctions are their procedure)
4. How can I get the rules of the sale, terms
and conditions, pre-registration requirements and methods of payment?
5. If it’s a lien sale, what is the interest
rate, and how is it calculated?
6. Does the county have any unsold Tax Lien
Certificates or properties from the last sale?
The answers to questions 5 and 6 are
going to be yes. Most counties have millions of dollars of un-sold tax liens on
their books and will usually be able to supply you with pages of hundreds, even
thousands of unsold tax lien properties. So don’t be scurred—ok frightened for
you English majors; get out their and try. The wealth you seek is out side of
your comfort zone. If it weren’t you would have it already!
(Broad investment opportunity)
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