Tax Liens investing gives you 8% to 24% nearly guaranteed returns depending on the state. And sometimes, upwards of 1000% returns on your investment, literally.
First, what am I doing today? Today I am at one of my first Tax Lien Sales in TX
I will let you know how it goes in my next newsletter.
I have known about tax liens for a while, but have not done anything with them.
Well, I got exposed to them again within the last month.
And I am really excited about them again.
Summary of it all
Tax lien is when someone don’t pay their taxes on a property they own, they get a lien put on the property for the overdue taxes.
Then if they don’t pay after a while (different for each state)
The state goes to get their money.
And they do that through selling the amount past due to investors.
Some states cell a “certificate” some states sell the actual deed to the property.
And the states all say to the property owner. If you don’t pay the amount the investor paid, plus X% interest to the investor, they will get your property without owing you any more money.
And the amount of interest is different for every state. Anywhere from 8% to 24%.
Then, the state says the property owner must pay you all your principle plus the pre-set interest amount in that state.
And if they don’t, you now own the property.
And you get the property free and clear of all liens, mortgages, or anything on the property. You now own the property for about 5-10% of the value of the property.
This is what equates to the 1000% plus returns on your money.
Or in TX, if someone pays you in the first month after you buy the property, you still get the 18%, even though your money was only out for a month.
So that means 216% return on your money.
If they pay in one day or two – that means like 600% returns. Without even owning the property.
Long story Short
You get 8-25% interest if the tax lien is paid by the property owner
If they don’t pay you the interest and principle – you get the property for the amount you purchased the lien for.
Which usually means you bought the property free and clear of all other loans and liens for 5-10% of the value of the property.
If you are interested in investing in tax liens with me.
Send me an email. we can talk and I can give you more details.