State Tax Lien & Deed Sales List
Successful Tax Lien Certificate Investing
Written by: Thomas Needles
When winning with the highest bid at auction on a tax lien, you are granted with a tax lien certificate. This is your legal paperwork that grants you first position authority on the property before the bank. This entitles you to foreclosure rights in the event that the land owner fails to compensate the government accrued back taxes. When investing in tax lien certificate, you become a secured creditor for the property.
It is highly recommended that if you are planning to invest for monetary gain rather than to establish ownership of real estate, tax lien certificate investing is the optimal route. Tax liens have a very low percentage rate of property owners failing to pay taxes owed, usually 1 in 250. Therefore, this is the easier route to follow as a new investor who would like to avoid the responsibilities of foreclosure.
How Many Tax Lien Certificates Can I Invest In?
The number of tax lien certificates that you accumulate in your investment portfolio depends on your financial status. Many quality properties with tax liens are available, and they have high interest rates that bring in a hefty profit. Due to the variable redemptions periods between states and counties, multiple tax liens are highly encouraged. Waiting for a single tax lien as a new investor may be too much anticipation to handle. It is best to stay actively engaged in tax lien certificate investing to keep your skills sharp and your profits steady.
The Best Places to Invest and the Places to Avoid
Deciding to invest in tax lien certificates is the first step on your road to financial success. The next aspect of your journey is to determine the best locations to invest you money. Some states are excellent investment while others are better off left alone. States that have country minimum bids fall into this latter category. Bids begin in and around the 49%-50% mark of the value of the property. This is a hefty amount of money, especially for a beginning tax lien investor. The allure that tax liens represent by becoming a secured creditor for real estate for pennies on the dollar is shattered by an extremely large initial investment. These states are not worth the hassle or price and should be avoided.
Guaranteed Earnings
There are much better tax lien certificate investments available in other states. Many states begin with no bidding rate what so ever! Imagine the potential earning income of this type of property if you can achieve a low investment. Also, if the tax lien were to go into foreclosure, the potential profits are astronomical in comparison to you initial investment. Scenarios such as this are what successful tax lien investors hope for.
Tax lien certificate investing is a more powerful alternative to stocks, bonds, mutual funds and any other well-known investment. It is also extreme safe. Your investment is never in vain. The sooner you start bidding in tax lien auctions and purchasing tax lien certificates, the sooner you will begin earning a substantial income that is incomparable to any other investment!
