by
Carl Hampton
08/04/2006
With large numbers of Americans now looking
for safer investments for their long term
wealth building programs. Most want higher
returns than they can get from putting their
hard earned money into Bank CD's, many are
seeking information about Tax Liens.
Investing in Tax Lien/Deed certificates can
and will enable you to realize safe,
annualized returns that are guaranteed by
the United States Government.
As all home owners are well aware,
collecting Real Estate property taxes is now
a priority for almost all the counties in
the U.S. Without these taxes the counties
would be unable provide us with the very
important services under their control,
police, fire and of course schools for our
children. At present some 26 states across
the U.S. use a Tax Lien system on any
property owner with delinquent taxes. They
then sell the delinquent tax debt to
investors at auctions or over the counter.
This ensures the county gets the funds
required to run the county, the tax
delinquent taxpayer will of course get more
time to pay off their already past due
property taxes and the Tax Lien investor
gets a high yielding Real Estate secured
investment.
Tax Liens are often called the “Fort
Knox” of investments. Government issued
Tax Lien certificates are a safer than
normal investment for the following reasons.
The constant rise and fall of interest rates
will have no affect whatsoever on Tax Lien
Certificates this is because the interest
rates of Tax Lien Certificates have been
mandated by State law.
In simple terms your investing in the
Government. They will at some time collect
the past due taxes, you then send the county
the Tax Lien certificate and they will send
you a check. The following are examples from
three states showing what a lucrative
business Tax Liens can be for the wise and
careful investor: 16% per year in all 15
counties in Arizona, 18% per year in all 67
counties in Florida, 50% per year in all 254
counties in Texas.
Most Real Estate properties will have an
outstanding mortgage or home loan. For the
most part the lender will normally pay any
delinquent taxes long before it gets to the
foreclosure stage. The certificates can also
be sold or transferred at a discount before
the due date allowing the investor to make a
smaller profit on the certificate should
there be a need for cash for whatever
reason.
The main advantage to the new or smaller
investor is that there are many thousands of
Tax Liens/Deeds for sale at every budget
level. In the old days, you would have to
travel thousands of miles across the country
to auctions if you wanted to buy Tax
Liens/Deeds. Now you can do it from the
comfort of your own home using the internet.
Have an opinion or a question you would like
me to answer, then write me!
http://www.CarlHampton.com
