forestlimittvグループ

Public·414 members

May 13, 2023

How to Get High Interest Rates in a Low Interest World with Tax Lien Certificates

If you are looking for a way to invest your money and earn high returns with low risk, you might want to consider tax lien certificates. Tax lien certificates are legal documents that give you the right to collect unpaid property taxes from delinquent homeowners. If the homeowners do not pay their taxes within a certain period of time, you can foreclose on their property and sell it for a profit.

Tax lien certificates are issued by local governments when property owners fail to pay their taxes. The governments sell these certificates to investors at public auctions, usually for a fraction of the property's value. The investors then pay the taxes on behalf of the homeowners and charge them interest rates that can range from 8% to 36% per year, depending on the state. The interest rates are set by law and are guaranteed by the government.

The 16 Percent Solution By Joel Moskowitz Pdf40

Download: https://www.google.com/url?q=https%3A%2F%2Furlin.us%2F2tGOQh&sa=D&sntz=1&usg=AOvVaw3UJVmk5jtnngx3EEVjXVsC

The benefits of investing in tax lien certificates are:

You can get high interest rates that are fixed and secured by real estate.

You can acquire properties at deep discounts if the homeowners do not redeem their taxes.

You can diversify your portfolio and hedge against inflation and market fluctuations.

You can start with a small amount of money and scale up as you gain experience.

However, investing in tax lien certificates also involves some challenges and risks, such as:

You need to do your due diligence and research the properties, the laws, and the procedures before bidding.

You need to be aware of environmental problems, bankruptcy, scams, and worthless properties that can affect your investment.

You need to have patience and cash flow to wait for your returns, which can take months or years.

You need to be prepared to deal with managing and marketing foreclosed properties if you end up owning them.

If you want to learn more about how to get high interest rates in a low interest world with tax lien certificates, you can read the book "The 16% Solution: How to Get High Interest Rates in a Low Interest World with Tax Lien Certificates" by Joel S. Moskowitz[^1^]. This book provides a comprehensive guide on how to find, buy, and profit from tax lien certificates in different states. It also includes appendices with useful forms, contacts, and resources for further information.

References:

The 16% Solution: How to Get High Interest Rates in a Low Interest World with Tax Lien Certificates by Joel S. Moskowitz. Andrews McMeel Publishing, 1994[^1^]

Pros and Cons of Tax Lien Investing

Like any investment, tax lien investing has its advantages and disadvantages. Here are some of the pros and cons that you should consider before investing in tax lien certificates:

Pros

Investor in tax liens can usually see a higher rate of return than stocks at 10%-25% or more[^2^]. And you have more control over your investment with tax liens than other investments, such as: where to invest, size of the lien, property type, and interest rate[^3^].

Tax liens are first position ahead and have higher priority than a bankâs mortgage, making your investment secure[^2^]. Even if the property owner defaults on their mortgage, you still have the right to collect your money or foreclose on the property.

It isnât as expensive as other real estate investing strategies and there isnât as steep of a learning curve[^2^]. You donât need a lot of capital to start investing in tax lien certificates, as some can be purchased for a few hundred dollars. You also donât need to deal with tenants, repairs, or maintenance.

You can diversify your portfolio and hedge against inflation and market fluctuations[^2^]. Tax lien certificates are not correlated with the stock market or the economy, so they can provide a steady income stream regardless of external factors. They also adjust to inflation, as the interest rates are set by law and increase over time.

Cons

You need to do your due diligence and research the properties, the laws, and the procedures before bidding[^2^]. Different states and counties have different rules and regulations regarding tax lien sales, so you need to familiarize yourself with them before investing. You also need to inspect the properties and check their value, condition, title, and liens.

You need to be aware of environmental problems, bankruptcy, scams, and worthless properties that can affect your investment[^1^]. Some properties may have environmental hazards, such as asbestos or lead paint, that can reduce their value or require costly remediation. Some property owners may file for bankruptcy, which can delay or prevent your collection. Some sellers may try to scam you by selling fake or invalid certificates. Some properties may be worthless or unsellable due to their location, condition, or zoning.

You need to have patience and cash flow to wait for your returns, which can take months or years[^2^]. Most property owners redeem their taxes before you can foreclose on their property, so you may not get the opportunity to acquire the property at a bargain price. You also need to wait until the redemption period expires before you can collect your money or foreclose. This can take anywhere from six months to three years or more, depending on the state.

You need to be prepared to deal with managing and marketing foreclosed properties if you end up owning them[^2^]. If you do get to foreclose on a property, you will have to take care of any repairs, maintenance, taxes, insurance, and legal fees associated with it. You will also have to find a buyer or a renter for the property, which can take time and money.

References:

The 16% Solution: How to Get High Interest Rates in a Low Interest World with Tax Lien Certificates by Joel S. Moskowitz. Andrews McMeel Publishing, 1994[^1^]