Thursday, July 1, 2010

Double Digit Return

In any real estate market imagine earning 10% to 18% and often much more on your investment. Most investments will fluctuate in value, have a low rate of return or are affected by market trends. But there are investments that do keep their value and generate a high interest rate of return for the investors. These investments are known as Tax Lien Certificates and until recently were dominated by institutional investors, savvy investors, wealthy investors and occasionally novices. Many of these investors eventually got the houses or properties associated with the tax lien certificates for "Pennies on the Dollar" through a tax deed (a byproduct of tax certificate ownership).

Tax lien certificates are nothing more than unpaid property taxes that generate a very high interest rate of return to the investors buying them. But they have made many investors extremely wealthy and provided a very comfortable lifestyle. The biggest problem though is very few people know how to capitalize on the existence of a tax certificate. Everyone has heard the saying "Knowledge is Power" and it is very true, especially when you are investing your "nest egg" or money needed in the future. The previously described investors do not want this knowledge brought to everyone's attention because this would cut into their bottom line.

The internet has opened up the ability for anyone interested in learning more about investing in tax liens and tax deeds to do their own searches. Also, there are many tax certificate investors that have opened niche markets to help the novices buy tax certificates for themselves.

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