Tax Lien Myths

It’s as easy as you see on TV.

The reality is that most people that invest in tax liens ever end up owning the property. Only a small percentage of tax lien sales will result in property ownership, however this is great for people who are only planning on investing in interest. Tax deed investing may be a better strategy ownership.

It’s not worth your time to tie up your money in an investment.

Tax lien redemption periods can vary from a few months to a few years. The truth is that many of the tax lien certificates are often redeemed early. In some states due to early redemptions you may be able to realize investment returns from 50% and up to 200% or more.


Tax Lien Investing is too risky.

Just like any investment you make there are always risks involved. If you don’t do your research an buy a property that is not sellable and do not sell the certificate then you can lose your investment. However the fact is that tax liens certificates are one of the safest vehicles for investing in real estate. The investments are backed by the government and in many cases there is guaranteed interest returns on your investment.