Why Are Tax Lien Certificates and Tax Deeds Profitable?

If you do not know it yet, in the United States, there's a large supply of tax lien certificates just waiting for the right investors to come in and get them. This is the reason why there is a significant increase of property investors each year for this type of investment. It is a lucrative business that attracts many people across the United States.

Tax lien certificate investing is extremely becoming popular, and a very competitive business because of its secured nature. There is also a guaranteed success because of the involvement of the government to the whole transaction. It is also widely believed by some experts that investing in lien certificates is a tool to increase your income substantially. Plus, it is a worthwhile venture for those seeking out for an alternative way of making money after retirement.

You may now wonder why tax lien certificate have these many wonderful benefits. Here are some points why these things happen:

a. The law helps you increase your property investment whenever you invest in tax lien certificates. The whole process begins when the county or local government allows interested investors, to purchase tax lien certificates in the amount of the property's delinquent taxes. The government does this in order to have the money to do public functions such as schools, hospitals, police, fire departments, road works, and many more.

The property owner is provided a redemption period though to pay his back taxes along with the penalties and fees. If he redeems in time, the government gives you the return of investment as the certificate owner, plus the interests.

b. A homeowner who does not pay his back taxes is going to lose his property to a tax deed. Afterwards, the government would hold a public sale of the property in which an investor is going to buy it. The deed to the property is then awarded to the investor, which gives him the right to foreclose and keep it.

However, it is quite a rare situation for a property owner not to redeem his property. Still, according to county treasurers, there are properties that end up foreclosed. So, if you are the lucky buyer of a tax lien certificate of a property that was bought for just a small amount, you can then decide to keep or sell it for a higher value. You would definitely get a good return of investment more than the initial amount you've invested, guaranteed.
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About the Author

Dustin Hahn is the top tax liens and deed consultant today that conducts trainings and mentoring to investors who want to learn the secrets behind real estate tax sales investments. He is the owner of Tax Sales Secrets, the best tax liens and deed investment company. He is the author of Real Estates Best Kept Secret, an e-book which is available at http://www.taxsalessecrets.com