Right here’s an excerpt from the 2016 e book “Tax Lien Investing Secrets and techniques: How You Can Get 8%-36% Return on Your Cash With out the Typical Threat of Actual Property Investing or the Uncertainty of the Inventory Market.” This part is from Chapter 3: Discovering the Finest Place to Make investments

The Six Issues You Want To Know

There are 6 issues that you might want to learn about tax lien or tax deed investing earlier than you get began.

1. The statutory rate of interest – that is the speed that the county prices delinquent tax payers and the speed that traders get on their cash when it’s not bid down on the tax sale.

2. The bidding methodology – What is definitely bid on the tax sale, whether or not the quantity paid for the lien is bid up, or the rate of interest is bid down, or one thing else completely is bid, or there isn’t a bidding in any respect and winners are randomly chosen.

3. The redemption interval – The time period that the property proprietor has to redeem the lien or redeemable deed earlier than the lien holder can foreclose on the property.

4. The expiration interval – The “life” of the tax lien, after which the lien will expire nugatory if no motion is taken by the investor.

5. How subsequent taxes are dealt with – Whether or not or not the lien holder will get to pay the next taxes if the property proprietor doesn’t pay them, and what curiosity or penalties are paid on the next tax funds.

6. Further Penalties – Are there different penalties that the lien holder will get when the lien or redeemable deed redeems?

These six issues make an enormous distinction in your revenue and are the explanation why tax lien investing may be very completely different in numerous states. Let me offer you examples from three completely different states that each one have auctions the place the rate of interest is bid down, however due to the opposite 5 components talked about on this chapter, investing in every of those states is sort of completely different.