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