Tax Liens 101: America’s Hidden Gem just waiting to be Exploited
What is meant by a hidden gem? If money is involved then how come it is not exploited like every other avenue of making money? Well to put it simply, not a lot of people know about this money making treasure. How does it work and how would you make money? Basically, a tax lien is an outstanding/overdue property tax owed by the property owner who neglects to pay it or cannot afford it. Therefore, the government tries to recover this money by selling tax lien certificates to investors. This certificate is secured by the real estate it is attached to. In essence, when one buys a tax lien, you are paying someone else’s property tax. The best part of this deal is that the government actually gives one the right to receive all the tax money back plus other fees that includes penalties and high interest. For example, in Fort Myers, Florida the interest penalty is 17%, where as in certain counties in Texas the interest penalty is a whopping 25%. Imagine investing in something and getting a GUARANTEED 25% return on your investment. The worst case scenario is that if the owners cannot pay the tax, you get the property that is free from mortgage and debts. Imagine investing $3,000, but due to the negligence of the owners can’t pay their taxes, therefore you get to keep a property that is usually worth 30-40x than your initial investment, if not more. More to come about tax liens in future articles. Stay Tuned!!
If your curious and interested in products that help those new to the Tax Lien world, here is a good product that I have suggested to many of my clients to get started by clicking here
