Government certificates have predictable rates and their payout to you is certain and your check is going to come from the government and they are secured by the real estate. Plus, there's no middleman where you're going to have to pay a bunch of commissions. You're going to learn how to buy them direct. Your security for this investment is a tax certificate which is the first priority lien on real estate. That means the tax certificate has a priority. In other words, it's a senior position to a mortgage.
The rules work like this, if you own a tax certificate and the property owner doesn't pay the taxes as agreed, by government mandate you get the property. Nice deal, don't you think? You get paid or you get the real estate. Let me repeat that. You either get paid 16%, 18%, 24% on your money or you get the real estate.
You invest your money in the government. Ultimately, you get a check back from the government. Simple as that. That's how it works.
Now I've got to tell you, after talking to hundreds of tax commissioners, tax collectors, tax assessors, they have all told me the same numbers. And the numbers are 95% to 97% of all homeowners will ultimately pay their taxes because they don't want to lose their homes. That makes a lot of sense to me. That's the good news. That means if you buy a certificate, your chances of getting paid back all of your money and getting that 16%, 18% or 24% return is 95% to 97%.
So now you know exactly how the Tax Lien Certificates work and how you can use them to make yourself financial independent.
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