Investing in Tax Liens 101

 
How to Buy a Property Tax Lien

One of the up and coming methods for investing in real estate is tax liens. Investing in tax lien certificates is gaining more exposure and becoming more popular due minimal risk and low amount of capital required to start investing and are even available to buy on the internet.

Many county tax lien sales used to take place in a local county certificate auction. Depending on the state and county requirements a government lien sale on property tax may take place at the local county court house, however nowadays with the ability to purchase a tax lien online many have switched to the internet to implement their purchasing system.

Some auctions, such as the Orange County Florida the tax lien auction requires bidding where the interest rate starts high (18 %) and bids down. Who ever is willing to bid the least amount of interest for the tax lien certificate wins the bid, however other tax lien sales in different states have different requirements and procedures. If you are interested in buying tax liens the best place to get started is your local official tax collector or county court house to find out more about how the procedure works in your area.

Investing Risks

Just as with any investment there are some risks associated with tax liens. Investing in certificates should be just the same as investing in any other type of investment. If you end up buying a certificate and the property is not sellable in some states you may still be required to take deed of the property and lose your investment. For example if you buy a tax lien certificate that's on toxic ground it may be deemed unsellable, and since you would be the new owner you could lose your investment due to having a worthless property. You should always research the property you are interested in purchasing a tax lien for to make sure that it is not hindered in a way that would deem it unsellable or make it an unprofitable investment. Although investing in tax liens involves risk, it is also considered one of the safest forms of real estate investing by many.

Purchasing Your First Tax Lien

When you purchase your first tax lien it would probably be a good Idea to start out with something local in your own county. It's best for beginners to start local because you are able to drive by the property and casually inspect the outside of it as well as it's immediate surroundings. Although you are not able to inspect the inside of the property you still have an advantage to properties that you can not see farther locations or other states that you are considering for tax lien investing.
The sky is the limit.If you are interested in learning more about Tax Deeds and Liens, you should click on the link below. It is a great place to get started if investing in real estate is what you are looking to do. Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ  

For more information about how to get started in tax liens go to the Recommended Reading section of http://taxlienblog.blogspot.com

Article Source: http://EzineArticles.com/?expert=Nindale_Fox

Article Source: http://EzineArticles.com/2005575