Tax Lien Investing: What You Need to Know

Tax lien certificates are an example of processes that need to be understood. A Tax lien certificate is a certificate of claim against a property owner for unpaid taxes. The certificate is issued by the local government and allows the investor to collect the unpaid taxes plus interest. Tax lien investing allows you to purchase a Tax lien certificate issued by the local government when a property owner has unpaid property taxes. This investment can reap a good return if the property owner pays the taxes and if the certificate is not redeemed by the property owner. The said County Treasurer issued Tax lien certificates to Edward Madson dba JEM Land investment, LLC. On November 2, 2022, Edward Madson dba JEM Land investment, LLC was issued a Tax lien certificate for unpaid taxes in the amount of $76,000.

At the same time, private investor, who purchase Tax liens, took in about $250 million more than what they were owed on about 2,600 homes. This demonstrates that Tax lien investing can be very profitable. While it's been around for a while, investing in property Tax liens is an option you may want to pursue. However, before jumping in and investing in a Tax lien certificate, it is important to understand the process and the risks involved.

Since then, The Examiner has found multiple lien filings for ... “Bad Actors claim that SK investment Properties, LLC owes back taxes in the amount of $2,000 and has filed a Tax lien against the property.” This is a prime example of how the Tax lien process works. When a property owner fails to pay their property taxes, the local government will file a lien against the property. Any amounts so remitted by the holder of the trust certificates ... of 669 first lien seasoned and non-seasoned performing prime quality mortgages were allocated to the Trust by the Master Servicer on March 28, 2020.

In Indiana, Maryland, and South Carolina, investor collect interest not only on the owed taxes and fees, but also on whatever premium they paid for the lien. For example, in Indiana the rate of interest is 12%, Maryland 18%, and South Carolina 16%. This means that the investor can expect to make a significant return on their investment. Advocates for investor say buying Tax liens can be a good way to diversify a portfolio and earn a good return on investment. An attorney for the Massachusetts Tax lien investment firm Tallage, LLC, encourages investor to view Tax liens as an opportunity to invest in real estate without having to deal with the complexities of ownership.

investing in Tax liens can be a lucrative venture, but it is important to understand the process and the risks involved. It is important to research the local laws and regulations in order to ensure that the investment is legal and that the investor is properly protected. Additionally, it is important to understand how the lien redemption process works and how the investor will be compensated for their investment. Finally, it is important to know the risks involved in Tax lien investing and to be sure that the investor is comfortable with the potential returns.