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Every year the county sells the tax lien certificate of the property having unpaid property tax in an auction. The investor who wins in the auction will pay back the unpaid property tax and he will get a legal document called tax lien certificate. Tax lien certificate is the legal proof that the investor has purchased the lien of the property. Tax lien certificates are the best investment options because it is having less risk than stock market investment. For more information, visit https://sproutfund.co
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TAX LIEN INVESTMENT - ADVANTAGESOF BUYINGTAXLIEN CERTIFICATE
CONTENT Introduction Tax Lien Investment Tax LienCertificate Advantages of taxLien invetsment Conclusion
Introduction Based on the state you are living in, counties have their own way of collecting the unpaid real estate taxes of the homeowner. Mostly it involves putting lien on the property for which the tax is unpaid. This will give the county the rights to take actions to get the unpaid tax of theproperty.
Tax LienInvestment Every year the county sells the tax lien certificate of the property having unpaid property tax in an auction. The investor who wins in the auction will pay back the unpaid property tax and he will get a legal document called tax liencertificate.
Tax LienCertificate Tax lien certificate is the legal proof that the investor has purchased the lien of theproperty. The home owner should pay back the unpaid property tax with interest rate between of 16 % to 50%, which may vary according to the statelaw. Once the property owner paid all his unpaid tax with interest, the tax lien certificate should be given to the county and you can get your original investment from thecounty.
ADVANTAGESOF TAX LIEN INVETSMENT Tax lien certificates are valid up to three years so you will get better rate of return than other investment options. In some cases the tax lien holder will end up owning the house he invested in tax lien by the foreclosureprocedure.
CONCLUSION Make sure that you paid all thereal estate taxes of the property to get a good rate of return from your investment. Tax lien certificatesare the best investment options because it is having less risk than stock market investment.