If you are saving money for retirement and using investments like the process taught by Saen Higgins & Tony Martinez at Wealth Without Risk to build up your nest egg, these trying times may make you a little edgy. Being nervous about investments when the economy is bad is reasonable. Many forms of investment are without guarantee and have varying degrees of risk. Only one is virtually risk-free – tax lien certificates.
How a Property Lien Becomes a Potential Investment
A tax lien certificate is a lien on property for money due to the county. Every piece of property is evaluated by the county it is in, and charged a yearly tax, and it is the responsibility of the owner to pay this tax. Counties do not want liens, they want money. They are counting on the money from property taxes to help with their budget expenses.
Instead of holding on to the lien and waiting for the property owners to finally pay them off, they sell the lien to investors like you. At that point, the tax lien certificate becomes an investment for you, and money in the city’s pocket. In exchange for paying off the property’s tax debt, the city charges an interest rate. When the taxes are paid by the property owner, you get the principle back plus all of the assigned interest.
Interest varies from state to state, but can be 18% or more. This is a flat interest rate that accrues from month to month. Considering that most tax lien debts are settled within a few months, that’s a lot of money in a short period of time.
Saen Higgins of Wealth Without Risk can show you how to invest in tax lien certificates with no risk. Get more information from this website, or call 800-882-0467 and find out about how to set up your retirement investments using last lien certificates.