Thursday, August 18, 2016

3 Hot Tips to Earn 18% Annually on Your Money

Today I bought my very first tax lien certificate, earning 18% annually, and it was super simple. Seriously, anyone can do it. So here's 3 hot tips on how you can do the same thing.

1. Go to the county tax assessor websites for states that issue tax lien certificates paying at least 18% interest and check to see if they offer OTC (over the counter) county owned tax liens certificates for purchase. Sometimes you can purchase them online or you can call the assessor's office and request a list of outstanding tax lien certificates.

Tax Lien States that pay 18%+ interest
Connecticut - 18%
Florida - 18%
Illinois - 36% 
Iowa - 24%
Mississippi - 18%
New Jersey -18%
New York - 20%
Ohio- 18%

2. Once you have a list of the outstanding certificates search for properties that have at least 2-5 certificates that have been redeemed within the last 1-2 years and only 1-2 property tax liens outstanding (public information available via county tax collector website). The reasoning is that you want a lien on someone who has a proven track record of redeeming certificates so you can be assured that your certificate(s) will redeem also. If you see someone who hasn't redeemed any certificates in the last 3+ years and you see expired certificates on their property tax records, you definitely want to turn the other way because it's probably a waste of money.

3. After researching and selecting qualified tax liens, make your purchases online or by check in some counties. Once the certificates are recorded with the county make sure to keep a record of them and their redemption periods. Some counties will mail you a physical certificate. Then just sit back, relax, and let the money work for you, accruing interest while you're waiting for your certificates to redeem.


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