| For those of you who are just getting into the real | | | | The tax lien gives the investor the right to collect the |
| estate business, you will find that there are a lot of | | | | back taxes owed on the property. But, here is where |
| things that you may not understand. In fact, there are | | | | most of the 'gurus' leave out the hard part. The owner |
| probably a few subjects that you have been | | | | of the property is given a specific period to pay you |
| inaccurately informed about. One of those subjects is | | | | those back taxes plus interest that may be up to 25%. |
| most likely tax lien sales. There are a lot of real estate | | | | Depending on what state you are in, that period may |
| 'gurus' promising that you can make millions by | | | | be from one to three years. So, how do you make |
| investing in tax liens. But, I'd like to help you see through | | | | money? Well, after that period is over, if you have not |
| the smoke and mirrors and get down to the truth. | | | | been paid the money owed on the tax lien, you have |
| First of all, the truth is that you can make a killing with | | | | the right to foreclose on the property. |
| this method. But it is not nearly as simple as you may | | | | All you need to do is go to the local courthouse and |
| think. Here is the basic process. When a home owner | | | | file the correct papers, and if the property owners are |
| becomes delinquent in payment of their property | | | | not able to foot the bill owed, the property becomes |
| taxes, the city is charged with collecting those back | | | | legally yours. You can live in it yourself or do whatever |
| taxes. But often times, they sell their responsibility to | | | | you would like with it. People really make a lot of |
| collect taxes to private citizens like you and me. The | | | | money with tax lien sales, but you need to make sure |
| city government will sell this through what are called | | | | that you understand that it can take a while before |
| tax lien sales. | | | | you see a profit. |