Turning Tax Liens into Investment Gold

Yes, you’re reading that right. You can actually make money off someone else’s debts, specifically property tax liens.

A tax lien is a claim on the assets of an individual or business that neglects to settle its owed taxes to the government.

In short, if you don’t pay your taxes, the government can seize your assets. In the case of property tax, the city or county can place a lien on your home or property. Yikes!

So, how are investors making money on this?

Investors can acquire property tax liens from a municipality, enabling them to receive payments with interest from the property owner. In certain instances, they may pursue foreclosure and gain property ownership.

That’s right — it’s a modern-day Monopoly game.

Ideally, the investor might recoup funds when property taxes are settled, typically earning revenue through a penalty assessed as an interest rate on the delinquent payer.

However, if you don’t mind feeling a twinge of guilt, foreclosure on the property means a free house for you.

Investing in property tax liens can be profitable, but it can also be a nightmare for homeowners. After all, some people are only a paycheck away from disaster.

If you want to protect yourself against anything that comes your way, it’s time for a financial review. For a personalized consultation, book a 15-minute call and tell us about your plan (where you are now, and where you want to be in the future), it’s easy – just click the buttons below.