How Do You Make Money With Tax Liens?
Investors often look to tax liens as a way to make high interest on a relatively safe investment. Local governments need property tax revenues to pay expenses, and if property owners fail to pay their property tax, they still need income to pay the bills. One way to do this is to sell property tax liens to investors. The investors pay the property tax and earn a high interest, sometimes more than 20%, depending on the state. If the investor is not repaid they can (after a specific time frame, depending on the state) foreclose on the property to gain ownership. Step 1 Identify lien states before seeking tax lien help. Some states are deed states, and handle unpaid property taxes differently. Lien states include Alabama, Arizona, Colorado, Connecticut, Florida, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New York, North Carolina North Dakota, Oklahoma, Rhode Island, South Carolina, South Dakot
