| Would you like to receive 15% to 50% return on | | | | bankruptcy could possibly result in the loss of your |
| investment (ROI) guaranteed by the government? Tax | | | | investment. With due diligence, this risk can be reduced. |
| lien certificates (TLC) offered in many states and | | | | Remember, not all TLC's are equal, some are better |
| counties in the U.S., U.S Virgin Islands and Puerto Rico | | | | than others. Sometimes you will have to fight it out in |
| offer returns that high. While most states offer less | | | | court with other lien holders if it gets to the foreclosure |
| than 50% your investment may be safe because it is | | | | stage. Proper title and bankruptcy research should be |
| secured with real property. A TLC is a note issued by | | | | done or your tax lien may end up worthless. Inspect |
| the county or municipality on properties that are in | | | | the property to insure you are getting some value. I |
| arrears with their property tax. Some states allow | | | | heard of a man in Texas who found the property the |
| these notes to be senior to all other mortgages and | | | | lien was written on flooded twice a year. His research |
| liens, including federal tax liens. These notes are sold at | | | | saved his investment. Don't trust the description of the |
| auction by the individual counties, municipalities and/or | | | | property, have a look for yourself. TLC's can be |
| states that issue them. Investors receive a fixed | | | | lucrative, but it may take quite some time to realize |
| amount of interest monthly written on the note for a | | | | and you are sometimes responsible for the tax |
| specific time period. This amount is state mandated. If | | | | payments during the foreclosure. Again, do your |
| the outstanding debt is paid before the term of the | | | | research on the property, legalities and taxes. |
| loan ends, the government will send the investor a | | | | Anyone who can legally own property in the U.S. may |
| check for the initial investment and all outstanding | | | | purchase a tax lien. These sales are conducted by lot |
| interest due. These note terms typically run for one to | | | | for cash, either on the spot or within a time frame of |
| three years. If the property owner does not pay, you | | | | within 48 hours. There may be a pre-registration |
| may have foreclosure rights; the government may | | | | requirement before the sale. There are also rules of |
| send you the deed to the property. This means you | | | | sale to be studied. Online sales are available. This is a |
| may realize a huge ROI. | | | | time, labor and money intensive investment that is best |
| There is some risk involved with the purchase of | | | | done locally. The sales and auctions vary widely state |
| TLC's. The purchase of tax sale liens of properties | | | | to state. More information is available from the county |
| under the control of Federal Deposit Insurance | | | | offices. A list of unsold TLC's may be available from |
| Corporation (FDIC) and those affected by the Drug | | | | the county as well. Research of public records is to be |
| Enforcement Administration (DEA), or if the owner files | | | | expected for due diligence. |