Tax Liens

Earn 14-18%
In several states when the property owners do not pay their property taxes on time, the county will impose a perpetual lien on the property with interest of up to 50% per year and then sell off these liens to private investors.

So why doesn't a county keep that high-interest income?
For two reasons:

1. They need the cash to operate.
2. They are not in the business of owning and managing real estate.

What is a tax lien certificate?
When property owners do not pay their property taxes, the county will impose a perpetual lien and issue a certificate, which is evidence of the lien. Some counties charge up to 50% interest and then they sell the right to investors. This high yield investment is very secure because a tax lien is superior to all other liens, including first mortgages and mechanic liens.

If the lien is redeemed, you receive a very high yield. If not, which does not happen often, you will be able to foreclose on the property and receive title at 10-15% of its appraised value. However, each of the 31 states that issue tax lien certificates has its own laws, and so does each county. Also, all properties are not created equal. You need to do your homework and seek the advice of an expert in the field, like Dynamics Capital Group.

Why settle for a low interest income when you can have a high-yield, secure income from tax lien certificates or buy property at 10-15% of its appraised value?