| During these times of global financial uncertainty, some | | | | underlying value and is in good condition then it will be |
| investment strategies that had been out of favor | | | | worthwhile investing in it. |
| during the boom years are now making a | | | | You have to be confident that this tax foreclosure |
| re-appearance. One investment opportunity that has | | | | property is currently in a excellent state of repair to |
| been around for years, but are now becoming highly | | | | retain it's value. It's a positive outcome and a simple |
| profitable investments are government tax liens. | | | | investment if the property owner pays his outstanding |
| Simply, a tax lien is a claim against a house for unpaid | | | | taxes to you as the owner of the lien. If the property |
| local property taxes. The governing authority that is | | | | owner cannot pay his outstanding taxes to you and |
| seeking payment of outstanding taxes places a lien on | | | | you find that the property requires significant repairs, |
| the property. This lien remains until the owner of the | | | | you could lose money. To avoid this outcome, you |
| property pays their tax obligation. The lien ensures that | | | | must see the property and be confident that it is a |
| the property cannot be transferred to anyone else | | | | good investment before purchasing a lien certificate. |
| unless the outstanding taxes are paid. | | | | Tax foreclosure sales are cash only transactions at |
| Tax Lien Certificates are sold by the governing | | | | tax property auctions, so if you want to be successful |
| authority at tax property auctions. This is where you, | | | | and fast moving, you'll need to have liquid cash funds |
| the investor, can make a great return. If you purchase | | | | available to you. If you have other ways of producing |
| one of these Liens the property owner must pay you | | | | the cash, you only have 1 - 3 days to settle the deal. |
| the tax debt. They cannot sell the property and are in | | | | Be aware of the risk that the property owner may file |
| debt to you. If after a certain period of time (depending | | | | for Bankruptcy. If your end game was to secure the |
| on the municipality of the property) the property owner | | | | title of the house then this may be jeopardized as the |
| has not paid you back, then the property passes to | | | | judge may only compensate you with the value of the |
| you. | | | | government tax lien certificate only. |
| Investing in a property that is under government lien | | | | The upside of county tax lien investments [ is the |
| tax foreclosure is profitable, because you can get it | | | | significant return that can be made. Tax liens are |
| cheap and sell it later at a good price and make a | | | | reasonably scarce so if you pick up a good one it can |
| good profit from it. This kind of investment is often | | | | be considered a very valuable investment. You need |
| seen as safe as the homeowner may pay up the | | | | to be able to demonstrate a good profit in the first |
| value of the tax lien or lose the title to the property to | | | | place before taking the plunge into properties that are |
| the investor holding the lien papers. The downside is | | | | under tax foreclosure. |
| that it is possible that other creditors are owed money | | | | Make sure that you have all of the information you |
| by the property owner, and if they declare bankruptcy, | | | | require and a carefully considered investment blueprint |
| these creditors may have a prior claim to yours. | | | | that will allow you to succeed in a government lien tax |
| If you would like to invest in a government tax lien | | | | business. Remember that with any investment comes |
| certificate, it is important that you have the correct | | | | risk, and the larger the potential profits, the larger the |
| information to understand what your investment is. | | | | potential losses if the strategy has not been |
| With a bit of focused work on your part, you could | | | | considered fully. |
| make excellent returns on your investment. If the | | | | Good luck with your future investing. |
| property associated with the lien certificate has good | | | | |