State Tax Lien & Deed Sales List
Prosperous Investments and Wise Investments: The Safety of Tax Lien Investing
Written by: Thomas Needles
While it is not uncommon to hear the word guarantee when making a purchase, there always seems to be some red tape or fine print that comes along with it. How long ago the purchase was made, the ability to provide proof of purchase, and the condition of the item purchased are all nonsensical ways to deflate and inactivate all promises made by a guarantee. In most cases, a guarantee does not equate the safety of your investment. Your money can still be lost. This, however, is not the theme of investing in a tax lien. Tax lien safety is of the utmost importance to the government because you are loaning them money that someone else failed to pay. You are filling a financial gap in the government, and they want you to continue doing so; therefore, a governmental guarantee stands on a solid, legal base. When investing in a tax lien, you will receive either compensation or property that is yours to own, rent, sell, demolish, or whatever you please.
This is not just the word "guarantee" stamped on the tax lien. This is a guarantee that is regulated by the law. The IRS has two distinct sections, 6321 and 6322, describing this guarantee to the fullest extent of the law. Yes, the IRS actually can make people happy, too. When the law is on your side as an investor, tax lien safety increases astronomically. You simply cannot lose when investing in tax liens. The government will not allow it.
Too Good to be True - Or is it?
The only gamble when it comes to tax lien investing is the amount of time it will take for the owner of the property to either pay the taxes or relinquish the property. Redemption periods vary from state to state and can last any where for 6 months to 3 years. It is usually at the end of the redemption period that the owner reimburses all back taxes, but there is a percentage that do not. This is when your tan lien investment makes you a property owner. This percentage right now is around 2% that the owner will lose the property, but that number is likely to change with increasing economic and employment downfall.
There really is no risk when it comes to investing in tan liens, and the safety of tax liens is incomparable to any other investment. Businesses can close, the stock market can plunge, but with tax liens, it is a win-win situation. You invest and are reimbursed as well as given additional interest and penalties accrued. Alternately, you invest and get property that you can turn around and make a bundle on . Just think about it: the average rent for a home can vary from $850- $2,000. This is income that just comes to you from your tax lien investment that is government guaranteed safe. A few months of rent in your pocket from a property, and you might be able to bid for another property that can make money for you. Imagine the potential income if you had to or three properties that you either sold or rented. You would never have to make another nine to five commute again. Once you learn to shop wisely, you can bid for properties that need minimal or no repairs. Many of these properties are quality, if not luxurious, pieces of real estate, and this investment is a great one - safe, secure, and with no loss. It really does not get any safer than this.
