Tax Lien Investing (James L. Paris)

What investment will pay you 18 percent or more per year on your money? It is called a tax lien (or tax deed), and it is growing in popularity as more traditional investments have fallen flat in recent years. The concept is actually not that complicated. If you own real estate , you realize that each year the value of your property is assessed and then you are sent a property tax bill. The process varies widely, but most states provide a window of time during which you can pay your taxes. In Florida, if we pay real estate taxes in November we receive a small discount, and the discount reduces to zero by the following April (which is the final point in time that the taxes can be paid without being officially late). If the taxes are not paid within a short grace period after that, a lien is filed against the property. The county has a secured interest in your real property but still does not have its money. The solution; allow an investor to step in a pay the taxes and earn a substantial interest rate on their money. There was a time when writing an article on tax lien investing, that I would have felt the need to include a list of which states. Now, virtually every state in the country solicits investors to front the money to cover unpaid real estate taxes. They are even selling tax liens in Canada!

James L. Paris

Related Videos