I have to admit I personally don't know a lot about Tax Liens but from everyone I speak with here it seems to be a great way to get involved in real estate investing. Many of our clients have requested that we offer a class on Tax Liens and today we launched a new program to deliver on this request. The Tax Lien program is going to be part of our Wealth Building Weekends live events.
To get a bit more info on the topic I asked our experts why investing in tax liens a good idea?
They answered with just a few of the benefits:
- The maximum rate of return on a tax lien can be much higher other investments (such as stocks). For example, the state of Florida offers a maximum rate of 18% (1.5% per month), while Arizona offers a maximum rate of 16%. In Iowa, a rate of 2% per month (or 24% annual return) is guaranteed.
- Because bidding is a usual practice in investing in tax liens, the states often provide incentives to promote bidding. For example, Florida law guarantees a 5% minimum return regardless of the rate bid (except if the bid is zero percent) or when the lien is redeemed.
- And if you’re worried about collecting on your tax lien investment - if you’re afraid of having to wait for the bank to foreclose on the property on which you hold a lien, the majority of tax liens are redeemed before the property is foreclosed.
So what are your thoughts on the world of tax lien investments?
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