Tax Defaulted property investing is the term used to describe a 200-year-old government program – Tax Lien Certificates and Tax Deeds. Simply put, when a property owner doesn’t pay their taxes, the local county will attach a lien on their property until the taxes are paid. Counties will auction off these Tax Lien Certificates or Tax Deeds to make-up the loss.
If you own the Tax Lien, you can earn 12%, 16%, 24% up to 36% interest on your investment, which might be as low as $12 or can be as much as you want. These ladies earned an unheard-of interest rate. And the best part, it’s 100% guaranteed by the government.
Tax Deeds are a bit different. Some states use Tax Deeds instead. Here, you can own a property free and clear for 20 to 50 cents on the dollar value of the house. This is why these ladies have earned so much.