Tax lien certificates: an investment opportunity

If you’ve been looking for a way to earn extra income through smart investing, you may be appalled by the state of the American economy. Everywhere you look people jump out of the stock market and shove money there somewhere safer like gold or the mattress. It’s a frustrating time for anyone looking to earn money beyond their job income and really get ahead in life. Fortunately, there are still a few ways to do just that, and it just so happens that now is a good time to do it. Tax lien certificates give people like you a way to get involved with reasonable investments and earn money that might not have been possible (or at least not as profitable) just a few years ago.

Across the country, people find themselves unable to pay their property taxes on a daily basis. When this happens, the IRS will place a lien on the property, making it impossible for the owner to sell it until it is removed. If the owner is still unable to pay their taxes, the lien is applied and the government has the right to move on. This could mean selling the tax lien certificate to a third party. This third party could be you, and the chance of winning money is doubled. You can make money by having the property owner pay back taxes directly to you at a generous interest rate, or you could be rewarded with the deed to the property if the owner doesn’t pay. Either way, it’s an investment that could end up paying dividends.

Although getting into buying tax lien certificates can be a good way to accumulate wealth or at least earn additional income, it should be noted that it is not without its risks. If you don’t do some basic research before making a purchase, you could end up with a nearly worthless piece of paper. If the original owner of the property decided to file bankruptcy, for example, the IRS may take precedence over their properties. It’s also not a good idea to buy a property or a tax lien certificate without seeing what you’re getting yourself into. Just having a description is not enough to base your decision on.

If you are looking to get involved in these investments, you will need to have some money up front. One of the reasons these sales are going down is because they are looking for investors who have the immediate cash to pay off and take responsibility for the loan. You may have up to 48 hours after the sale to get the money, but even that may be pressing in many cases.