What is a tax lien certificate?
Apr 30, 2009 in
Questions And Answers
Can they make me money?
What is the least I can invest in one?
Are they risky?
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One comment
mdaleks on April 30, 2009 at 3:57 pm
Great questions.
I'm a real estate investor and I'd say tax lien certificates are the number 1 safest way to invest in real estate.
In simplest terms, it's a certificate that the government creates because the home owner of a property didn't pay his taxes. So you pay the taxes for them upfront, and get a good return over the next 1-2 years.
You can make anywhere from 12-21% on your money depending on the state you buy it in.
The least amount you invest can be as little as a couple hundred dollars.
They are not risky at all. In fact, if the person doens't pay you back your money plus interest, you end up owning the house! Not a bad deal. That doesn' t happen that often though.
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