Looking for a low risk - low effort, high yielding investment? Shazam! Property tax liens are for you.
The cost of local government depends on money collected from home owners through property taxes. But what if a property owner fails to pay the taxes they owe?
In that case the county government places a tax lien on the property. That means title to that property cannot be transferred until the property tax, plus interest, is paid.
But wait! It could be years before that property is sold. The county can't wait that long. They have bills to pay and they need the money... so they sell those tax liens at auction to the highest bidder. For the county that means they get their money now. For the winning bidders it means a fat and secure investment.
How profitable are property tax liens?
All 15 counties in Arizona pay 16% yearly. All 67 counties in Florida pay 18% yearly. All 254 counties in Texas pay 50% yearly.
It doesn't happen often, but if the property owner does not redeem the tax lien you hold you can foreclose and own the property. Your investment could be as little one hundreds dollars!
If all that isn't good enough... you can now bid on tax liens through the internet. Take a look at realauctions.com
Like any investment you must not rush into buying property tax liens before you do some learning. Different states have different rules and procedures. You must know the rules to play the game.
To learn more visit
http://digbig.com/4eqbf
About the author: Mark Walters is an investor-entrepreneur helping other investors from his Web pages at http://www.Lease-Option-Sub2.com where you can learn what's working now.