Understand Investments, Financial Products and Make Money!
Monday February 19th 2018

Retirees: Boost Your Income With Tax Lien Property Investments

Tax lien property investments are really not that new. Many would be investors still do not know how to use them to complement their other investments today. As the stock market is not the only means of appreciating an asset base – cash anymore. Some others feel that the roller coaster ride on Wall Street often leads to sleepless nights and upset stomachs. Not so when you invest in real tangible properties via this little known method.

If you do a little research on the subject, you would find a few books have made it into the mainstream financial press. But most consumers of investment products do not know the basics of how to invest in this government backed and federally funded process of collecting on delinquent taxes.

So lets begin there. When a home owner or entity fails to pay their assessed taxes for a given period of time the property taxes do not vanish or go away. The property taxes are accruing all along and incurring additional fees and assessments as time goes by.

Now depending on the state where the property is located the property is slipping into back tax hell. This is where the back taxes are literally multiplying. The county needs the revenue from the property taxes in order to run the municipality. This is where the county either issues a Tax Deed or a Tax Lien.

The lien is just another obligation that someone has to pay in order to clear the property of the back taxes. In other states the county may issue a tax deed for the property and this is where the opportunity to invest comes in. When a property owner has defaulted or failed to pay the back taxes they do not get away even though they by for a time. But the county or state will likely step in to collect the taxes and restore the property back to a productive revenue generating position. You and I are literally paying the taxes for others in return for either the property (for tax deed property) or for our principal plus nice interest increases for tax liens.

Investors can receive either the property (for tax deeds) or the amount of their investment plus interest (for tax liens). The real beauty of this is that the big money on Wall Street has often overlooked this opportunity to make more money in such a secure manner. More and more pension funds are investing in this manner because of the safety and the high rate of return. Who cares that I cannot go to a cocktail party and talk about stocks. At least my principal grows and grows every year.

The amount invested is secured against the property. The programs are fully mandated and backed by the government. This is really unprecedented in scope and measure. A quick game plan is listed below:

1. Determine if you live in a state that offers ” Tax Deeds Or Tax Liens”

You can do this easily. I went down to the county clerks office downtown. I asked them one simple question. Is Michigan a Tax Lien or a Tax Deed State? The clerk said let me get John he knows all about those. John came over and even gave me a pamphlet of how to invest in tax liens in Michigan. Seeing he was helpful I pressed him. How might I do a little research to find out what properties will be going up for the tax lien sale? He then told me the state law that required the announcement to be in a lowly circulated paper and a large circulated paper.

2. Strive to do research the internet for tax lien investing information. Most people don’t know about this so asking your friends and family may be uncomfortable. Besides, if you do a basic search at Amazon.com you’d be ahead of most of your peers. We have an excellent resource to help you gain further knowledge in the shortest possible time at our website free.

3. Know your long term goals before investing. This is not a get rich quick method of asset appreciation. Most liens will only come due once a year. So if you are looking for short term make money fast action this is probably not it. But to compensate for the time factor involved, you’ll be blessed to gain 16% and more on your investment capital.

I know that that another resource that helped me learn much faster was by Moskowitz, ” The 16% Solution” . It is a good primer and you could probably find it on Half.com or Amazon.com. Look in the used book section for smart money savings.

If you want to increase your retirement nest egg without being at the whim of Wall Street you should at least give tax lien property investing a fair examination. Do not expect your stock broker to be excited about your questions. If they cannot earn a commission on it would you expect them to talk with you about it? I thought not.The ideas presented here are mentioned to get you thinking of additional ways to improve your retirement nest eggs. I forget to mention this, but you can also invest liens within your IRA.
Retirees, click here for free access to conference videotrainings from some of the high priced internet marketing conferneces free. Get your free copy while supplies last as ‘thanks’ for your many years of contribution and making America the land of opportunity!.

Leave a Comment