| Are you tired of cd rates in the toilet and stocks that | | | | So, now that you know the basics, you need to find |
| go all over the place?. Are you looking for a safe | | | | out how and where to get your hands on tax liens. |
| place to invest that is backed by the government, | | | | Tax liens are sold one of three ways: at live auction, |
| pays high returns and is secured by real estate? Then | | | | over the counter, or by internet auction. |
| listen up because tax lien investing could be right up | | | | Live auctions are generally held once a year in the |
| your alley! | | | | county courthouse. You get a bidder number and the |
| A tax lien is simply a lien that is placed on real estate | | | | actual bidding process varies by state and local laws. |
| for the non payment of real estate taxes. In many | | | | Sometimes you bid down the rate, other times you bid |
| states, the county government will sell the lien to the | | | | up the price. |
| general public in order to balance their budget. The | | | | Another way to buy tax liens is over the counter, |
| investor is issued a tax lien certificate that is backed | | | | which is just a fancy way of saying mail in bidding. To |
| by the property. The investor then collects any | | | | buy over the counter, you simply call the county and |
| penalties that are owed by the taxpayer when they | | | | get a list. Then just need to you pick out the property |
| redeem the lien. The penalties in most states for tax | | | | you want to bid on and send in a check. These are |
| certificates are high. | | | | almost always at the full interest rate of the lien. In |
| How high you ask? Is 24% a year high enough for | | | | most jurisdictions, over the counter (or OTC) liens are |
| you? Obviously, it varies by state, but that is the | | | | the ones that did not sell at the auction. However, in |
| statute in Iowa. But what about risk? With a tax lien | | | | some rural areas, counties have been known to sell |
| you either get a high rate of return on your investment | | | | tax liens exclusively over the counter. |
| or the property. That's a lot better than the bank cd's. | | | | The newest and most exciting trend in tax liens is |
| By the way, guess who is one of the nation's largest | | | | internet bidding. The county holds an auction on its |
| investors in tax liens? Banks! So, why not cut them out | | | | website (generally for about a week) or a third party |
| of the loop and go straight to the source. | | | | website like Bid4Assets and the investor simply places |
| The best part about tax liens is the price. Nearly all are | | | | a bid from the comfort of his home computer. How |
| under $5000, with most being in the $200 to $1000 | | | | easy is that! No traveling or hassles required. |
| range, which is easily within reach of the average | | | | Now that you know the basics, what are you waiting |
| investor. Unlike many speciality investments, there are | | | | for? Go learn your local regulations and buy some tax |
| no special requirements or licenses required to invest in | | | | liens today! |
| tax liens. | | | | |