Tax lien certificates (TLC) profit exactly how?
Aug 27, 2009 in
Questions And Answers
Well, Real Estate is not exactly my area of expertise, and I’ve known about TLC’s for a while but never exactly understood how it all works. Is there a high risk to this? Can you lose money? I heard you still make money somehow, right?
Heres a scenerio:
There is a tax lien on a nice property, the face value for Tax Certificate is .99 and the Delinquent Taxes due for 2008 is 97.94. The company has a 5 processing fee. What should I expect to spend on this? How do I figure out what interest I earn if the owner of the property pays the taxes owed? Anything about this business would help greatly. Thank you for taking the time to read my question!!
- Logan
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One comment
JP on August 27, 2009 at 9:01 pm
You can lose money and if you don’t have a reference to go with, you got a few traps like bankruptcies and such. I read my first book on it and recommend that you at least read a few.
First i’m not sure what company is processing it in your example since local government agencies usually do not charge processing fees. If you are in Arizona, you would get 16% return per annum on the $56.99 if it is paid off by the tax payer.
Hope that helps. Please see the reference below.
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