If you're having a look at a good opportunity from real estate to make money, tax lien certificates are actually the way to go forward. With government backed investments, your cash will be superbly safe when you invest it with the government. On the other hand, these certificates have higher IR than other investing opportunities. You'll be getting somewhere between 35-55% on selected tax lien sales. If you research a bit you may find tax lien certificates with interest rates on the higher side.
Although there are several blessings of investing in tax lien, raised rates alone can inspire any person with investment. You won't be receiving this sort of yield on any other investment. In some areas, the interest rates can go way beyond your expectations. carry on looking for tax lien properties from areas with higher commercial value. That's where you get the raised rates.
Another advantage of investing money in tax lien certificates is security. Barely any other investment sees this type of security. The govt will usually redeem the certificates even before the property is announced for foreclosure. This indicates that you'll get your money back with high yield in nearly every case.
When you invest in tax lien, you do not have to worry about the court actions from property owners. Unlike foreclosure investing, where legal actions are common, tax lien owner doesn't have any responsibility towards the owner of the property. This makes it one of the best investments at the current time with large number of lawsuits in real-estate.
Though tax lien certificates are the ideal investment, it has some of its downsides too. As an example, you will have to pay the cash at the time of the sale. This is mostly not good for speculators as they only get awfully brief time to clear their financial liabilities after the sale.
About the Author:
Greg Dickson is the chief of marketing for the Wealth Matters, one the leaders when it comes to taking advantage from tax lien certificate auctions. You will get the best information concerning how to invest in tax lien and handle foreclosure investing.
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