While most Tax Lien Investors emphasize the really high interest rates that can be obtained from Tax Lien Certificates, it should also be remembered that it is possible to become the owner of a property at pennies on the dollar. Does this really happen? Of course it does. Does it happen every day? No, but it does happen and when it does, it's an unexpected joy that will give you bragging rights for years.

Earn Super High Interest Rates

With Tax Lien Certificates paying 10% to 24% depending on the State you invest in, can there really be a better home for your hard earned money? To give you an idea of just how much the banks and fund managers are making on your money, let's use "Rule72" - this is a very simple way of working out how long it would take you to double your money. You take 72 and divide it by the rate of interest rate offered by the banks, funds or bonds (that's Rule 72). The answer tells you how many years it would take your original investment to double.

Let's be generous and say you are receiving 5% interest on your money at your local bank, (72 divided by 5 = 14.40), that's a little less than fourteen and a half years to double your money. Now lets compare that to a 24% return on a Tax Lien Certificate from IOWA (72 divided by 24 = 3 years)! That's right THREE YEARS! What happens if we use a Tax Lien Certificate from Florida at an 18% rate of return, (72 divided by 18 = 4 years). What a big difference this makes to your money.

Now let's look at the huge difference in the returns from an investment of $2000 over 40 years. If we say the average Fund Manager made 8% per year for each of the 40 years, this would get you something like $43,000. Now let's invest that same $2000 over 40 years in a Tax Lien Certificate from Florida at 18%. Are you ready for this? Your return would be around $1,500,000! That's right $1.5 million dollars! Which one would you go for?

Security And Safety

All Tax Lien Certificates are secured against the Real Estate property. The property would have been appraised by a government agency at somewhere between 10 and 100 times the amount owed on the Tax Lien.

Tax Lien Certificates take priority over all other forms of liens on the property including any mortgages that may be outstanding on the property. Lenders become your "New Best Friend" if they choose to foreclose on the property. They MUST pay off the Tax Lien first. The lender in most cases will pay off the Tax Lien before the redemption date. After all, they are not going to lose a valuable asset over a few thousand dollars.

Should the property owner not pay off the Tax Lien Certificate before the redemption date, you receive the right to foreclose on the property. The rules vary from State to State and are outlined in our "Tax Lien States" guide. One of two things will now happen: (1) the lender will pay you off or (2) you could get a nice piece of Real Estate property for pennies on the dollar. This is a win win situation for the owner of the Tax Lien Certificate.

Liquidity

Liquidity is a very important part of any investment. Your ability to be able to sell your investment, should the need arise, often makes the difference between a great investment and a good or average investment.

Before the introduction of the Lien Exchange Platinum Lounge, many knowledgeable investors steered away from investing in Tax Lien Certificates. For most, the unpredictability of when the Tax Lien Certificates would be redeemed outweighed the huge returns. There was at that time no market place in which to buy or sell their Tax Lien Certificates should they require the return of their investment unexpectedly.

The LienExchange.com Market Place changed all of this and brought the last essential ingredient (liquidity) to what is an outstanding investment opportunity for investors of all sizes. The Lien Exchange Platinum Lounge brings together buyers and sellers in a simple easy and very cost effective manner.

Membership enables you, from the comfort of your own home or office, to locate Tax Lien Certificates from all over the country and at all budget levels. The Lien Exchange Platinum Lounge alleviates the need for expensive and time-consuming travel. It allows you to direct all of your available funds into the purchase of the Tax Lien Certificates, lowering the purchase cost and increasing the profit.

Risk Against Reward

In today's uncertain economy, Tax Lien Certificates surely represents one of the most profitable investments. It is not unusual for investors to double, triple or even quadruple their initial investment in less than 5 years.

As outlined in the Security and Safety Section 2 above, Tax Lien Certificates are 100% secured against Real Estate property. This minimizes the risk to almost zero against the huge rewards that can be obtained from the mandated interest rates imposed by the States. To bring it to its most simplistic level, you are investing in the United States Government.

You Really Can Start Small

We've all heard those sayings "the rich get richer" and "it takes money to make money" and they may well be true in most cases.

Investing in Tax Lien Certificates allows you to receive the same high interest rates regardless of your investment. You can start for as little as $200. There will be opportunities for any budget regardless of size.

Many people redirect their IRA or 401K to get started in Tax Lien Certificate investing. The opportunity to double, triple or even quadruple your money in 3, 4 or 5 years depending on which States you invest in, makes this a win win situation for the Tax Lien Certificate investor.

Wealth Generating Books

From Credit Despair to
Credit Millionaire
Don't let credit hold you back any longer. Take what you need to get what you want. A book on how to build real wealth.
Carl Hampton, Nationally Syndicated Financial Columnist

The 16% Solution
How to Get High interest Rates in a Low Interest World with Tax Lien Certificates.
Joel S. Moskowitz, J.D.

Make Money in Real Estate
Tax Liens
How to Guarantee Your Returns
Up to 50%
Chantal Howell Carey & Bill Carey

Rich Dad Poor Dad
What the Rich Teach Their kids about Money - That the Poor and Middle Class Do Not
Robert T. Kiyosaki, with Sharon L. Lechter, CPA

Exchanging Up
How to Build a Real Estate Empire Without Paying Taxes… Using 1031 Exchanges
Gary Gorman, Exchange Expert