Why purchase a tax lien on a property?
Sep 29, 2009 in
Questions And Answers
I was bored and looked at the real estate section on ebay earlier. There were all these auctions that seemed to be for the tax lien on a property but not the actual property itself.
What is the point of buying that? What do you do once you own a tax lien- do people buy it hoping to get the owner to pay on the lien and make a profit, or is it that once you own the lien you can take the property from them if they don’t pay up?
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One comment
Landlord on September 29, 2009 at 3:41 pm
The odds of taking the property are close to zero.
This is actually a pretty profitable investment, you buy the lien for pennies on the dollar, but not only get to charge the entire lien amount but 10% interest too.
No other investment pays that high these days.
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