Investing in Tax Liens

Authored by Robert A. Trezza in Investments, Taxes
Published on 04-01-2009

We are all well aware that we are in rough economic waters currently, but there are investments out there right now which are ripe for the taking. One lucrative investment to look further into is Tax Liens Certificates. These are certificates that become available when a property owner is unable to pay the taxes on the property. A tax lien is placed on the property and the county is then able to sell the Tax Lien Certificate in order to make the money they would have lost otherwise. If you are wondering how you can go about acquiring a Tax Lien Certificate there are a few methods you should follow to aid you in making money. When first looking to purchase a Tax Lien Certificate you will need to do some research as to if and when the county of choice is selling the certificates. Once you know when the sale will be taking place you will next need to know where to go. The address and time is important to have.

If you check with your county or the county in which you seek the Tax Lien Certificate you should be able to acquire a list of liens that are being auctioned. If you don’t have luck here you should next try your local newspaper. When there is a lien sale you will want to know what the interest rate will be before you decide to purchase. Also you may want to look into previous months sales that were not sold at that time. For these certificates you must check with the county. With a little work and research most of these questions should be able to be answered. There are usually plenty of unsold Tax Lien Certificates out there to be purchased, but they wont come to you it may take a little bit of elbow grease, but it will be well worth it when found.

It is important not to just stick to one county and to keep checking back, persistency will definitely pay off in the end. It is a rough economy, but there are many ways to make money, as long as you are willing to work at it. There are a few reasons why persistency may pay off. If somebody had initially sought to buy the lien last month, but could not come up with the capital to do so, it may become available to you or a property owner may fault on their payment at the end of the month, where you sought it out earlier in the month.

It is now time for you to check with the local counties and use your morning newspaper for more than just reading the funnies. If you are reading this article then you already have one good advantage over others, as Tax Lien Certificates are not too often discussed and a lot of people are not too familiar with them, so get the ball rolling, you wont be sorry you did.


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