Tax certificates are a great way to realize great investment returns.
Here is why:
- They routinely provide an investment return to investors of 10 to 30 percent per year.
- In the second year, many states tack on a substantial penalty so the investment returns in the second year can exceed 24 percent.
- In some cases, tax lien investors can walk away with an entire property for only the taxes owed.
- Because state governments issue tax liens and monitor the sales, the investment risk is low. Also, the certificates are backed by the property they are issued against. If the defaulter does not pay the investor all money and interest due, they lose their entire property for only the taxes and penalties owed.
- They are an undiscovered investing method. This is because few people have even heard of tax lien certificates and very few books have been written on the subject of tax lien investing.