Real estate in the same breath as tax lien certificates are not a big deal to most people, but to a savvy investor they can resemble $$.
Lets take that bad word named "tax" and turn it into lien certificate holder and the owner of this lien certificate will have a big smile on his face. He may not tell you why as not many investors share their guarded secret of investing.
Real Estate And Tax Lien Certificates is one of the safest types of investments you can make with generally a good above average of return. It is not hard to invest in certificates and if you are in the know how they are usually quite profitable; however investing blindly without sound solid advice can cost you money.
For example buy a tax certificate without research on commercial property for $500 and find out it is next to a pig farm your choices for that property use becomes severely limited and selling it might be a hard proposition.
So how do you know if investing in real estate and certificates is a wise decision?
A lien is levied against a property owner who has not paid his taxes on time by the government against the non-payer's property until he pays his bill.
This lien (if sales are allowed in that sate) should be make public and give the opportunity for investors to bid on tax certificates. When you bid and become owner of the certificate you have agreed to pay the taxes for the non-payer that did not pay them and in return you have won the right to collect the delinquent non-payers taxes that he owes plus a surcharge in the form of an inflated interest fee for the non-payer not paying his bill on time, mind you this does not give you rights to anyone's property. This fee is an interest rate which depending on the state could up to 18%, now that's a high interest rate any investor would love. The rate could be lower but it can also be even higher. This late penalty fee is an incentive to taxpayers to pay their taxes on time and the reason investors buy certificates.
Now the good part, nothing is guaranteed in life but buying lien certificates might be the closest thing that is and here's why. If the property owner after a certain length of time still has not paid his back taxes the government will auction off his property to get their money, what does this have to do with you the owner of tax lien certificate? No one wants to lose their property outright so 98% of the delinquent non-payers pay their late bill, so you not only get your investment back you get the interest penalty the delinquent non-payer paid to settle his debt.
I bet you are starting to see the incredible opportunity investing in real estate and tax lien investing has to offer.