Want To Pay For My Taxes ? Tax Lien and Tax Deed Investing

There are many ways to make money and create wealth from Real Estate. Buying and holding for appreciation, renting for income, and fixing and flipping are some of the common known strategies. 

A little known real estate investing strategy is Tax Lien or Tax Deed Investing. 

 State, county and local governments raise money to provide benefits and services via taxation. One type of taxation, is a tax on "real property." Pursuant to statute, the owner of a parcel of real property is assessed a dollar amount to pay based on the value of that real property. 

This tax, in virtually all cases, is collected by the county where the property is located. If the owner of the property fails to pay the tax, the amount of the tax becomes a lien against the property. A lien against the property, however, does not help the county and local governments pay for the services and benefits they have promised to provide for their citizens. 

The county needs the money now, not some time in the future. It needs that money in order to fulfill its budgetary obligations. By state statute, each county is authorized to collect the taxes due that remain unpaid by selling at public auction, either a Tax Lien Certificate or a Tax Deed. 

Learning how to buy these Tax Lien Certificates and Tax Deeds is a very real way to achieve financial independence. 

If you ask most people, you will find that very few of them even know that this form of investment exists. It is not well publicized; banks and brokerage houses have no incentive to tell you about it; and people who are doing it consider you competition.

So how do I get started?

How do you acquire the information and skills you need to make money? While the process is not difficult, it does take a consistent and focused effort. You are the only one who can create your success, and you can do it. Start by learning everything you can about investing in either Tax Lien Certificates or Tax Deeds. Don't try to learn everything all at once. Many resources are available on the internet. 

There are over 3,000 counties in the United States, and each one of them has something a little different about the way they do things. There are some good books on the subject (recommended on the bottom of our site ) and many of the counties have a wealth of information you can obtain for free. A good place to access the various counties across the US is www.naco.org

Some key benefits of this business:

• Liens can be bought for small dollar amounts. Many are under $1,000
• High double digit interest rates are common. Rates are set by state
• Your investment is secured by real property
• It is a local investment, so you may go see the properties you have an interest in
• Many investors can actually take over the property in foreclosure if payor defaults. 

I actually have heard many good things about this business/investment opportunity and would like to further my knowledge on the subject. I will post more on this topic over the coming weeks and months. 

In the meantime, you have your homework assignment children. :)