Tax Lien Investing Information

Tax lien sales are fast becoming one of the most popular means of investing. Tax lien investing is enjoyable and straightforward and poses a great opportunity to turn a sizable profit with very little risked upfront. So if you're not familiar with this type of investing - read on!

What is a Tax Lien Sale?

When a property owner becomes delinquent on the taxes for a piece of real estate, the government holds a lien on the property. In order to receive the back taxes owed, the government then holds an auction. The winning bidder takes responsibility for paying the back taxes and any associated fees. This means that for the cost of the taxes owed-as low as a few hundred to a few thousand dollars-you could end up owning the property. First, though, a few other things have to take place.

Getting the Property

After you pay the back taxes, the property owner has a set amount of time to repay them. The length of this period varies from state to state and can last from one to four years, although in most states it's about two years. If the owner fails to pay in the allotted time, you take ownership of the property and all its contents. What happens next is completely up to you-you can improve upon and "flip" the house, sell it immediately, or even keep it and move in you want.

What if the Owner Pays Back Taxes?

Should the current owner succeed in paying off the taxes, you will no longer hold the lien. You still stand to make a profit, however. You will receive a check covering your initial bid, plus you will earn accrued interest.

If you're interested in pursuing this opportunity further, check online at your county treasurer's website to find out when and where local auctions are held. Even if you don't have a ton of start-up money, you can turn tax lien investing into a lucrative and exciting personal venture.

Investing in Tax Liens
Site dedicated to investigating the opportunities available investing in tax liens.