Question by B721: how good of an investment are tax lien certificates?
Im looking for good real estate investments. I heard and have done a little research on tax lien certificates. Any one have any advice or knowledge about tax lien certificates or maybe other good real estate investments?
Best answer:
Answer by Ed Atun
They are generally good investments if you only want the 16% interest that they pay. If you want to own the underlying property, they aren’t so good. Of the 50,000 properties advertised for the yearly sale, over half will be paid before the auction. So doing a lot of homework is wasted time.
Many of the properties are worthless. They exist only on a piece of paper. Ditches and alleys and easements and slivers of land.
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Tags: Atun, Auction, Certificates, Ditches, Easements, Good, Good Real Estate, Homework, Investment, Investment Tax, Knowledge, Lien, Lot, Piece Of Paper, Real Estate Investments, Slivers, Tax Certificates, Tax Lien Certificates, Tax Question
They can bring in a good 18% on your money depending on the state the property is in but there are due diligence steps you will want to do as you would in any property. It is not a walk in the park but when you do find a property that brings in 18%, it can be a great investment strategy no doubt.
As far as other good real estate investment strategies, I really like wholesale flipping due to little risk but my favorite strategy is to buy and hold for passive income. In my opinion, there is nothing cooler in real estate than getting checks every month that supersede your monthly expenses and living financially free.
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