Tax Lien Certificates and Tax Deeds – High Return Investments

Published: 15th February 2010
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When it comes to investment, you want your money to be safe, to have high return; you want to have a better control of it so you can make sure that every penny is working very hard for you. Investing in Tax Lien Certificates and Tax Deeds is a very conservative yet profitable way to create wealth and is a high-yield, property-secured, state-mandated investment. It matches your investment goal perfectly. You can even invest tax-free through a self-directed IRA.
Anyone can purchase tax liens or tax deeds. You don't need to have good credit and you don't need to know a lot about real estate. Tax sales are usually published on the local news paper. You can also find out the list of delinquent tax properties, the place, the date and the time where the tax auction will be held at.
Some states are Tax Lien states whereas some states only offer Tax Deeds. You need to decide which path to take. If you have more capital to start with, you may want to start with Tax Deeds for a quick wealth accumulation. But you can also start with a small amount of capital. The Tax Lien Certificate price range varies from as low as $10 for a piece of vacant land or can be as high as hundreds or thousands of dollars for a commercial property like a high raise office building in downtown.

When buying Tax Lien Certificates, the average return is from 8% to 50%. The redemption period varies from 1 year to 5 years depends on the state that you pick to invest in.
Since property is a tangible asset, and one that is not as slippery as other investment opportunities, it provides the cornerstone for wealth accumulation for most successful investors today. Investing in real estate and Tax Lien Certificates has starring power in the market. Cycles of real estate growth are predictable. Even a poor real estate investment climate can be profitable for investors in Tax Lien Certificates because of the inherent value of property. With today's high foreclosure rate, high unemployment rate, stock market turning south, 401k becomes 201k, we really need to take actions to educate ourselves and plan for our own retirements instead of waiting to see our life time hard earned money disappearing in the stock market. Now is the time to start the Tax Lien Certificate investment.
You may have been aware of Tax Liens and Tax Deeds, but not taken the time to learn the mechanics of these liens. If you know anything about real estate, you know that they are more attractive than most people realize.

Tax Lien Certificates are fully collateralized by the property. While most investments that have a predictable risk and return ratio - "the higher the risk, the greater the return." But this is not the case with tax lien certificates. While the risk of purchasing them is minimal (because the certificates, themselves, are fully collateralized by the property to which they are attached), the profits are great. So they run contrary to the underlying philosophy of most investments. The return is great even without risk!
The niche of tax liens is a very conservative yet profitable way to create wealth.

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