http://www.REIClub.com - Are Tax Sales a Good Investment For Real Estate Investors? Here Is A Quick Video On The Pros And Cons Of Investing in a Tax Sale
Tax Sale vs. Tax Lien
- Tax Lien:
a tax lien is a lien imposed by Federal or state law to secure payment of back taxes.
- Tax Sale:
Refers to property being sold by a taxing authority or the court to recover delinquent taxes.
Tax Lien:
- your initial investment PLUS a guaranteed percentage
Tax Sale:
- Average Price 30-60 cents on the dollar
- Right of Redemption
Tax Lien:
- lien plus interest and any other fees
Tax Sale:
- interest plus the costs incurred to foreclose
Tax Liens / Tax Sales Pros
- Pennies on the Dollar
- State Authorized Returns
- Volume
- First In Line
- County collects
- No Maintenance
- No Landowner Liability
- Free and Clear
- Guaranteed ROI
Tax Sale / Lien Certificate Cons
- Specific Regulations
- Homeowner Bankruptcy
- Worthless Property
- Additional Liens
- Competition
- Lien Laws
