Thursday, January 10, 2008

Why do I Invest in Tax Lien Certificates?

Sometimes I’m asked the question, “Joanne, why do you invest in tax lien certificates?" I have a one word answer to this question.


There is no other investment I know of, that gives me such a high rate of return with the degree of security that I have with tax liens. Tax Lien Investing offers other advantages that I like as well.
  1. Consistent Return. Regardless of what of what the stock market does or what the housing market does, you get the same high return on your investment. Your interest rate does not go up and down with the market.
  2. Low Initial Investment. Unlike other real estate investments, you don’t need tens of thousands of dollars to get started. You can purchase your first tax lien for under $1000.
  3. No Liability. Unlike other types of real estate investing, there is no liability with a tax lien. When you purchase a tax lien, you are not purchasing the property and you don’t have any liability for it. You don’t need property insurance.
  4. No Brokerage Fees. Unlike investing in the stock market or other types of securities, you don’t need a broker to purchase a tax lien. There are other costs, like recording the lien with the county clerk, but this paid back to you when the lien redeems.
  5. Higher Interest Rates. Rates on tax lien certificates are higher than you can get with other safe investments, like a money market account at a bank or a CD.
  6. Tax Free Investing. You can legally avoid paying taxes if you invest through a self-directed IRA. If you use a self-directed Roth IRA, your profits can be totally tax free.
  7. First Position. In most states a tax lien takes first position over other liens. That means that if the lien doesn’t get redeemed and it goes to foreclosure (which doesn’t happen
    very often), you are first to get paid.

Think about it, we all a better place to put our hard earned money, to make it work harder for us. The stock market does not have a very good track record. And right now the real estate market in a lot of states is taking a licking. But if you have a tax lien on a property, it doesn’t matter if the value of the property goes down, the tax lien still makes the same interest rate that you got at the tax sale.

As long as I buy tax liens on good properties, in good areas, and get great interest rates, the return on my investment will help me live a very comfortable life and meet my financial

Why not start building your own profitable tax lien portfolio today, one tax lien at a time, and start saving for your future. Click here to find out how you can get started:

Happy and Prosperous Investing,


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