Tax Liens Earning 16% WOW!

I have been interested in tax liens for years now and have been on and off learning about them as well. The real estate gurus claim that there are so many liens that go unbidden for and can be picked up easily and earning are so much higher than any bank is playing and much safer because they have real estate backing them up. That is not entirely true in my opinion.

I am an occassional dabbler in tax liens and last year I attended “virtually” a tax lien auction held by Maricopa AZ county. I was able to purchase a couple tax liens and locked in earnings from 12% up to 16%. I was hoping for property but over 90% of all liens in Maricopa as most other counties pay off the liens for property especially since the value of the liens is typically a very low percentage of the value of the property. Even in these times of real estate as the lowest values in years! At the tax sale most of the liens went for 0% which is something I would understand if the purchaser is thinking they have a higher chance of getting the property. Otherwise, why would anyone want to tie up their money for 0%??

Well it’s been a year and all the liens have paid off. So for a year my money earned from 12 to 16 percent interest. Pretty good I think. I also am planning on continue to dabble in the tax lien process and think this will be a nice way for us to spend some time during our retirement. Picture this – us in our diesel RV traveling around the US visiting friends and family and beautiful sights. Everyonce in a while we hit a county near it’s auction time and do a bit of online research and filtering then visit some important properties and bid at the auction. Then we can keep rolling a portion of our invested money into higher interest bearing investment devices. Plus we will be visiting a place with a purpose and the trip will then be tax deductable! Whippee!!

I have a great guide on “Tax Lien Reality Not Fluff” that is available to you. Please contact us on the Contact page and we’ll get you the info.

How many people do you know that have actually purchased a tax lien? Do you see it as a good investment vehicle?

Comments are closed.