People invest in tax lien certificates because of how secure they are. In addition to having government guarantees behind it, there is collateral on the lien in the form of the real estate being taxed.
Merritt Island, FL (PRWEB) May 07, 2013
A new video training now available online at TedThomas.com explains how the purchase of tax liens is a safe and secure investment that is backed by the government. This online training reveals the hidden investment secret of tax liens that most financial experts don’t talk about despite the 15 to 36 percent returns tax lien certificates generate every year.
“Your attorney, broker, and financial expert don’t talk about these investments because they can’t make a commission on them,” said tax lien authority Ted Thomas. “That makes sense. The financial experts make a living buying and selling with your money and drawing their pay off that. They are not going to tell you about investments unless they can make money too.”
These tax investments are extremely safe and secure because this is a government-backed sale of tax debt, each taxing entity has a vested interest in making sure the sales are secure and backed by the state laws. If buying tax liens were risky, the government would be less likely to get the money it is owed.
“People invest in tax lien certificates because of how secure they are. In addition to having government guarantees behind it, there is collateral on the lien in the form of the real estate being taxed,” he said.
That real estate is a surety that few other forms of investments can match. Not even a mortgage is as secure because a mortgage takes a second place to property taxes. This is why so many mortgages include an escrow account for taxes.
“Lenders absolutely know their investment in a mortgage can be set aside for the property taxes,” the tax lien certificate investment expert Ted Thomas said. “This is why banks and other lenders will often pay past due taxes before the property goes to a tax auction. They do not want to run the risk of losing their investment for less than pennies on the dollar.”
The biggest risk a tax lien investor runs is becoming the property owner. Mr. Thomas said this happens less than five percent of the time, but it must be a part of the investing equation.
“Sometimes tax delinquent property owners simply will not redeem the property, meaning that they won't pay the delinquent taxes. When that happens you are the owner of real estate that cost you pennies on the dollar,” he said. “If you can sell the mortgage free tax defaulted property for half the fair value, you can generate a sizable profit.”
Mr. Thomas said there is no other investment, which has such a high rate of return and such guarantees in place. Even government bonds do not generate as much money as these predictable investments.
“Municipal and government bonds have an extremely low interest rate because they are secure. That’s the general rule of investing. The more risk involved, the higher the percentage of interest. Only in real estate government certificates is the returned interest high and the risk low,” he said.
Mr. Thomas offers a series of instructional videos for purchase of tax liens at his website TedThomas.com. Ted Thomas has developed in-depth training programs that show you step-by-step how to profit from tax lien certificates. He is the pioneer in teaching this material and has been educating investors for over 20 years. Thanks to Ted’s dedication to educating people about this low risk high yield investment strategy, the secret is getting out.