With a large numbers of Americans now looking for safer
investments for their long term wealth building programs. Most want higher
returns than they can get from putting their hard earned money into Bank CD's,
many are seeking information about Tax Liens and Tax Lien Investing. Investing in Tax Lien and Tax Deed
certificates will enable you to realize safe, annualized returns all guaranteed
by the United States Government.
The collection of Real Estate property taxes is a major
priority in every taxing district in the USA,
as all home owners know all to well. If a county were unable to collect those
taxes in a timely fashion, it would be unable to provide the public with
important services such as the police and fire departments and schools for our
children. To avoid this problem, all counties in 26 states across the US
will place a Tax Lien on any property with delinquent property taxes and then
sells the delinquent tax debt to investors. The county gets their money, the
tax delinquent taxpayer gets more time to pay their already past due property
taxes and the investor gets a Real Estate secured high yielding investment.
Tax Liens are often called the “Fort
Knox” of investments. Government
issued Tax Lien certificates are a safe investment for the following reasons.
The constant rise and fall of interest rates do not have any affect whatsoever
on Tax Lien Certificates because the interest rates of Tax Lien Certificates
are mandated by State law. Basically, you are investing in the Government. When
they have collected the past due taxes, you will send them the Tax Lien
certificate and in return they will send you a check covering the money you
paid for the certificate plus any outstanding interest.
The ups and downs of the stock markets will have no affect
whatsoever on the rate of return. Each State has a mandated length of time for
the delinquent taxes to be paid. If they are not made current during this time
period, the property is sold to pay the debt.
The following are examples from three states showing the
lucrative business of Tax Liens:
- 16% per year in all 15 counties in Arizona
- 18% per year in all 67 counties in Florida
- 50% per year in all 254 counties in Texas
Most properties will have an outstanding mortgage.
Generally, the lender will pay these delinquent taxes before it gets to the
foreclosure stage. The certificates can also be sold or transferred at a
discount before the due date allowing the investor to make a smaller profit on
the certificate should there be a need for cash for whatever reason.
The main advantage to the new or smaller investor is that
there are many thousands of Tax Liens/Deeds for sale at every budget level. In
the old days, you would have to travel thousands of miles across the country to
auctions if you wanted to buy Tax Liens/Deeds. Now you can do it from the
comfort of your own home using the internet.