What Is a Tax Lien?

Investing in real estate is one of the most profitable markets available today. It allows you to make money multiple times from one simple investment and can help you increase your net worth, cash flow, and financial freedom by putting more of your hard-earned money in the bank. If you are working toward finding new ways to earn and invest, then looking at real estate is a good way to go. And if you are just starting out in this business and don’t know where to begin, then tax liens are the perfect vehicle to get your feet wet and start to learn how to make money in real estate.

Whatever type of property you may invest in, whether it is residential, commercial, or industrial, there are several taxes that are attached to the property that can make you money. Taxes can make you money? Yes! But only when you take the place of the government and the taxes are then owed to you! Taxes are levied in a variety of places with the purchase of a property or home, and when they are not paid by the owners, they become tax liens. Tax rates are determined by the state and county where you live, based upon the price of housing in your neighborhood and assessment rates.

Tax liens begin when someone doesn’t pay their taxes on a property that they own. If the taxes become overdue, the county has the right to sell the tax interest (or lien) to someone else. Usually, people who owe the government taxes will be given a certain amount of time to pay them. If they don’t get paid after ...

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