One of the more low-risk investments in the real estate
market is to buy tax liens (formally tax lien certificates). The reason for
their low-risk is due to the fact that, when an individual is faced with the
possibility of losing their property, they are quick to pay their debts. Not
all delinquent taxes come from a lack of funds. Sometimes it’s just that the
timing of the due taxes doesn’t quite match with the income of some households.
When you buy tax lien certificates, you not only give a property owner an
additional 12 months in which to pay that year’s taxes, but Buchanan County,
Iowa, you can make a 24% rate of return on your investment!
Depending on the state, auction processes will vary.
Sometimes the people at the auction will “bid down” on the acceptable interest
rate, with the lowest bidder winning the auction. This is not the case in Iowa,
and no matter what, you will receive your 24% rate of interest if you win the
auction. Sounds pretty good, doesn’t it?
The way you buy a tax lien (tax lien certificate) in
Buchanan County is that individuals at the auction will bid on percentages of
the property they are willing to accept, should they end up foreclosing (after
the redemption period ends). The person willing to accept the smallest
percentage of the property will win the auction. The down-side to that is, if
the property does go into foreclosure, as the winner of the auction you may end
up with a very small piece of the property in the end.
However, tax certificate sales (tax lien certificate
auctions) are one of the safest, lowest-risk forms of investment available. If
you know which properties to buy (and why), then you have very little to fear.
The real work is in doing your due diligence when researching the properties
and avoiding those that raise red flags.
Even with all the
proof of how tax lien certificate investing is safe and lucrative, many people
don’t know how to begin to invest. Some are unaware that you can begin with
less money than you’d think. Would you like to know the truth about this 100
year old process? Go to: http://www.tedthomas.com/truth-about-tax-lien-certificates/
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