Would you like to receive a 15% to 50% return on investment (ROI) guaranteed by the government? Tax Lien Certificates (TLC) offered in many US states and counties, the US Virgin Islands, and Puerto Rico offer such high returns. While most states offer less than 50%, your investment can be safe because it is secured by real estate. A TLC is a note issued by the county or municipality about properties that are delinquent with their property tax. Some states allow these notes to be superior to all other mortgages and bonds, including federal tax bonds. These promissory notes are sold at auction by the counties, municipalities and / or states that issue them. Investors receive a fixed amount of monthly interest written on the note for a specified period of time. This amount is a state mandate. If outstanding debt is paid before the end of the loan term, the government will send the investor a check for the initial investment and all outstanding interest owed. These note terms typically have a duration of one to three years. If the property owner does not pay, they may have foreclosure rights; the government can send you the title deed. This means that you can get a great return on investment.

There is some risk associated with buying TLC. Buying sales tax links from properties under the control of the Federal Deposit Insurance Corporation (FDIC) and those affected by the Drug Enforcement Administration (DEA), or if the owner files for bankruptcy, could possibly result at the loss of your investment. With due diligence, this risk can be reduced. Remember, not all FTAs ​​are the same, some are better than others. Sometimes you will have to fight in court with other lien holders if you reach the foreclosure stage. Proper title research must be done and bankruptcy or your tax lien may end up worthless. Inspect the property to make sure you are getting some value. I heard from a man in Texas who found the property the link was written on flooded twice a year. Your research saved your investment. Don’t trust the property description, see for yourself. FTAs can be lucrative, but they can take a long time to complete, and you are sometimes responsible for tax payments during foreclosure. Again, do your research on property, legality, and taxes.

Anyone who can legally own property in the US can purchase a tax bond. These sales are made in cash batches, either on the spot or within 48 hours. There may be a pre-registration requirement prior to sale. You also have to study the sales rules. Online sales are available. This is a time, labor and money intensive investment that is best done locally. Sales and auctions vary greatly from state to state. More information is available at county offices. A list of unsold TLCs may also be available in the county. The investigation of public records is expected to be due diligence.