Maximizing your interest through tax sales is a very easy market in today’s economy. The market is volatile with investing these days and you need to make sound judgments on where you want to put your money. Have you ever purchased a car or knew someone who did and it was a lemon? It didn’t feel very good knowing that money had just been thrown away and that it would cost even more to make the new ride a good one. Well today we are going to talk about maximizing your interest through tax sales. Tax sales are one of the least heard about yet best money earners there are in this big world of ours. It’s true that property taxes have been around as long as a piece of land has been purchased or owned. So why not make your investments sound, backed by the government and collateralized by a property. That almost sounds too good to be true, and I might think so myself if I didn’t know better. There is a way of maximizing your interest through tax sales.
Tax sales come in three different forms. Tax liens, tax deeds, and redeemable deeds. The first one is what we will focus on today, tax liens.
When a property owner does not pay their property taxes, you the investor are allowed to pay them for him. This is collateralized by the property itself. The owner will have a time frame called a redemption period to pay you back plus the percentage you are making or he will lose the property to you. The money goes to the county government so that they’re revenue can be allotted for. This way, you are maximizing your interest through tax sales. You can select a state that pays 24% per year like Iowa. That’s a pretty good rate of return and the redemption period is 1.75 years. The home owner gets to keep his home for another 1.75 years, you get to collect 24% annually plus your money back, the county get their revenue and it is a win win situation for all who are involved. Maximizing your interest through tax sales is a great way to gain money at a rate that you would never receive from a money market, CD’s, Stocks, or other types of investing that gain interest. The percentage rates are ones you get to choose depending on which state you work in and if you loose you get the property! Can you think of a better way to make money? Stay tuned for more exciting strategies to come! Thanks for reading!