Opportunities
When buying tax liens there is either the opportunity to make a small relatively safe return if the lien redeems. But if the lien does not redeem a much greater profit can be made from selling the property on the open market.
In General there are three possible outcomes when purchasing a Tax lien on a property:
-The lien is redeemed and the investor makes a small profit in the form of the state mandated 10% interest.
-The lien doesn't redeem and the investor is issued a Tax deed for the property, which is converted to a warranty deed and sold for great profit.
-The lien does not redeem but the property is worth less than the price of the lien.
The research and time it takes to find good liens and the potential pit falls has lead to many a individual investor to loose their entire invesment. We recommend that if you have not purchased tax liens before that you look at our managed investments.
