Are you interested in returns of between 6 and 50 percent of your money, guaranteed by a bond of property taxes against real estate?
Author Joel S. Moskowitz explains how investors can buy little-known tax lien certificates that pay high returns in his book, “The 16 Percent Solution.”
As a bonus, although the author cautions that it rarely happens, the investor could be kicked in and foreclose on the property. However, he cautions that property owners usually pay, so investors should be content with only high returns.
What is a tax lien certificate?
When a real estate owner fails to pay their property taxes, 27 states and 1,152 cities and counties sell tax lien certificates to investors. The government gets the money from property taxes right away. The investor buys a tax lien, which is then secured by the real estate.
Returns on tax lien certificates vary by state law. Arizona’s top rate is 16 percent, Florida countries up to 18 percent, but in Michigan, the rate rises to 50 percent in the second year. If the property owner does not redeem the investor’s property by paying the back taxes plus the high interest rate, the investor obtains title and possession of the property.
New investors can start small, perhaps investing a few hundred or thousands of dollars, and then purchase more property tax lien certificates. Although not all states are smart enough to offer tax certificates to speed up tax collection, after reading this book, you will know why you should.
At the time of writing, states offering tax certificates include Alabama, Arizona, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Mississippi Missouri, Nebraska, New Hampshire, New Jersey, New Jersey. York, North Dakota, Oklahoma, Rhode Island, South Carolina, South Dakota, Vermont, West Virginia, and Wyoming.
The book’s prominent appendix lists state-by-state interest rates and procedures. For real estate investors who want high returns without physically managing the property, this new book shows you how. It also explains the few pitfalls to avoid and how to buy the best certificates with the greatest profit opportunities.
On my scale of one to 10, this excellent book scores a solid 10.
