3 Reasons to Use a Self-Directed IRA to Buy Tax Lien Properties

The IRS Code has allowed investors to form self-directed IRA's since the mid 1970's. With a self-directed IRA, you can direct investments into nontraditional items such as to buy tax lien certificates. Here are three reasons why you can benefit from using a self directed IRA to buy tax lien certificates.

1. Double Your Money Quickly. An IRA can be supercharged when you buy tax lien certificates. If bought in Arizona, a tax lien certificate can earn up to 16% annually in your self-directed IRA. When you buy tax lien investments you generally receive the amount invested plus interest within 12 months. If you continue to reinvest in tax liens year after year at 16%, you can double your money in about 4.4 years. Only a self-directed IRA can preserve this 16% return, as traditional IRA's do not generally invest in tax liens.

2. Your Money Grows Tax Free. By buying tax liens in a self-directed IRA, you can avoid all taxes until the money invested is withdrawn from the IRA, which is usually around age 59 1/2. The money can be invested once, twice or a thousand times and continue to grow tax free, so long as it is not removed from the self-directed IRA.

3. The Flexibility to Buy Time Sensitive Investments. Many self-directed IRA's allow you to carry a check book that is tied to the account. This gives the investor incredible freedom to buy a bargain property at a moments notice. In this arrangement, you can buy tax liens with the stroke of the pen, without a fund manager or other bureaucrat saying no or otherwise trying to slow down the process.

To maximize you returns, learn how to form a self-directed IRA. Make sure you have a check book tied to the IRA to allow you to invest in time sensitive investments such as tax foreclosure properties, or to buy tax lien certificates. By doing this, your investment grows tax free and will double every 4.4 years. You'll pay no commissions or transaction fees. This is the best way to keep your hard earned money and make it grow like wildfire.

Nationsbank and Wachovia have been buying these secret investments for years. These secret investment ideas are now being revealed to you,the little guy so you too can earn 16-50% on your money. With Wall Street and traditional real estate investments rapidly deteriorating, you need to look for a safe place for your hard earned dollar. Tax liens are backed and leveraged by real estate and guaranteed by the government. In most states, they are a first lien on real estate, and when foreclosed, they wipe out all junior liens, including mortgages. This allows you to potentially receive a valuable piece of real estate for pennies on the dollar.
 Yes, you can still make a fortune in Real Estate with this Ultimate Real Estate system. >>> http://bit.ly/1ukjzFZ
Discover more about how to buy tax lien property at my blog, http://www.buytaxlien.net

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

Article Source: http://EzineArticles.com/1452321