Why Tax Liens & Tax Deeds Are One Of The Most Secure Investment

In my experience of coaching and teaching thousands of people how to buy tax lien certificates and tax deeds, I've accumulated a lot of questions. Sometimes this topic can be a bit confusing, mainly because the whole process of tax lien certificates and tax deeds are run by the local state and county governments and each one has their own distinct rules and regulations.

Hence, I've decided to share with you the top 10 questions I've received in order to give you some insight into why buying tax lien and tax deeds is a predictable, certain and secure investment for you. The main reason is because the government issues these certificates by the hundreds of thousands on properties that have delinquent, unpaid property taxes. And when you raise your hand at the auction, buy that certificate, take it home or just put it in your safe deposit box. That certificate will earn high rates. After you invest in tax liens from the government, the government gives you the right to get all your money you invested back, plus the rate of return. So when you own a tax lien certificate, you have the absolute priority on that property. You either get paid, or you get the property. Here are your top ten questions answered:

1. Who can buy a tax lien? Anyone who has the cash to pay the auctioneer.

2. Will I be evicting someone from their house? No, the only thing you're paying is the property owner's delinquent taxes. You are not foreclosing on them.

3. Will I own the property at some future date? Possibly, although it's rare for a property owner to forfeit their real estate. In Arizona, for example, 99% of all property owners pay (redeem) the taxes due to the county, when the property owner pays the taxes. The county in turn pays you interest plus a high rate of return. Nationwide, 95% of all tax lien certificates sold are paid (redeemed) by the property owner.

4. Why don't people pay their taxes? - People die and no family member or heir pays the tax. - People run out of money — they become unemployed and have money problems. - Some people won't part with their money until the last minute. They are making more by investing elsewhere.

5. I thought the municipality or county was obliged or required to find the owner of the property? Yes, they send multiple notices via registered/certified mail, and put announcements in the newspapers.That's what the law requires.

6. What if the property owner dies? The county will forward tax notices to the last-known address. Then the in addition will promote the tax sale list. Often, heirs or family members step forward to pay the taxes.

7. How many tax lien certificates can I acquire? There's no restriction. You can bid and purchase as many as your finances will allow.

8. Whom do I pay? You will give your money to the local county government — there are no brokers or intermediaries to pay. 9. Who will pay me my return? The property owner pays the county their delinquent taxes. The municipality or the county government that collected from the delinquent property owner will get in touch with you to then return your tax lien certificate. Upon receipt they will send you a government check.

10.Will I have to contact the homeowners at any time? No! In almost all instances you only do business with the local county or municipality.