How to Make Money With Tax Lien Certificates

Learn How to Make Money With Tax Lien Certificates

I’m Ted Thomas, and I’m going to show you how to make money with tax lien certificates.

I’ve been involved in this business for over 30 years, teaching people and guiding them. Also, I buy tax lien certificates and tax defaulted property myself.

Today, I’m going to give you some inside tips on how to make money with tax lien certificates.

As I said, I’ve been involved in this for a long time. I’ve taught literally hundreds, maybe even thousands, of people in most of the communities across America how to make money with tax lien certificates.

This is a business that’s been around for over 200 years. I didn’t invent it. It’s a government-mandated and administered program that’s safe and secure. This is a local investment in most cases.

Want to learn how to make big profits in real estate? Would you like to buy mortgage-free homes for pennies on the dollar? Or earn double-digit interest rates secured by real estate? Then you don’t want to miss this FREE Mini Course.

How to Make Money With Tax Lien Certificates:

Paying Someone Else’s Property Taxes?

About half of the states will sell tax lien certificates. A tax lien certificate is just a piece of paper. When you buy one you are paying someone else’s property taxes.

Now you’re probably shaking your head and saying you don’t want to pay your own taxes, let alone someone else’s taxes.

Well, you do want to pay this one because you can earn money, and you’ll have a safe, secure investment.

You’re going to invest your money with the county and also get your money back from the county, plus you’ll get a nice rate of return.

How to Make Money With Tax Lien Certificates:

Finding a List of Tax Lien Certificates for Sale

How do you find tax lien certificates to buy? Well, you can find them in the newspaper or on the county website.

When they’re in the newspaper, the list is massive. I could show you a newspaper, and it would be thick, showing hundreds and hundreds of tax lien certificates.

There are plenty of them available across the United States. You can purchase tax lien certificates online, or you can actually go to the auction. It’s up to you.

tax sale list newspaper

How to Make Money With Tax Lien Certificates:

Property Taxes

Why are they selling tax lien certificates? Because with few exceptions, property taxes are due on all privately owned properties across the United States.

It’s a small tax. Generally 1% or 2%, not a high tax at all, unless you’re in a state like New York or New Jersey where they’re a bit on the high side. However, generally speaking, property taxes are very affordable.

Now, why are they selling these certificates? The local county needs money to pay the county employees, police, firefighters, and school teachers and money to maintain infrastructure.

The county has a lot of bills to pay.

How to Make Money With Tax Lien Certificates:
Delinquent Property Taxes

The state legislature has authorized the treasurer to levy and collect property taxes.

If they can’t collect the tax, they will issue either a tax lien certificate, which is what we’re talking about today, or they’ll issue a tax deed.

Since the county needs money, and the property owner hasn’t paid the tax, you can pay someone else’s taxes.

How to Make Money With Tax Lien Certificates:

A Passive Investment

When you buy a tax certificate, you do not get possession of that property.

What you get is a certificate, and you just sit passively. Just sit and wait for them to pay.

Seniors and conservative investors love this investment. Why? Because there’s no work to do. All you do is buy the certificate and hold onto it.

is buying tax liens profitable interest rates

How to Make Money With Tax Lien Certificates:

Tax Lien Certificate Interest Rates

95% to 97% of all the property owners are going to come in and pay the tax. When they do, you’ll get back all your money plus a high rate of return.

Tax lien certificates interest rates by state vary. For example, Arizona pays 16% and Florida pays 18%.

Which state has the highest interest rates on tax lien certificates? Illinois, which pays up to 36%.

You can earn outrageous amounts of interest. Why do I say outrageous? If you go to your local bank, and put money in a passbook, you’re only going to get about 1% or maybe even less.

How to Make Money With Tax Lien Certificates:
Cost of Tax Lien Certificates

Anybody can buy a tax lien certificate. It could be $500, $5,000 or even $50,000. They come in all sizes.

Tax certificates pay 16%, 18%, 24%, up to 36% depending on the state or county. You invest with the government, and your check is going to come back from the government.

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How to Make Money With Tax Lien Certificates:
Tax Lien Certificate Redemption

If you’re worried about not getting paid, 95% to 97% of the certificates are paid within 2 years.

If you don’t get paid, you’ll get the property.

I didn’t make the rules, the government did. You’re either going to get paid on that certificate, or you’re going to get the property.

Additionally, when you get the property, you get it without a mortgage. What happens to the mortgage? The mortgage is wiped out.

buying a fixer upper home without a mortgage

How to Make Money With Tax Lien Certificates:
A Low Risk Investment

Could you lose money on a tax lien certificate? It’s very rare for anyone to ever lose money on a tax certificate, but here’s what you need to do.

If you’re buying a certificate, you need to make sure that the property is there. Have someone look at it to make sure a hurricane didn’t blow the building down, or there wasn’t a flood or a fire. That’s a case where you could lose.

You always want to look at the property before you invest.

How to Make Money With Tax Lien Certificates:
Start Small

I don’t know what kind of investor you are, but I always tell people to start small. Buy a lot of smaller certificates even if you want to buy one large one. Buy a couple of small ones to get used to it.

Purchase a tax certificate on a house, which could be $1,500 to $3,000, or maybe buy a duplex at around $3,000 or $4,000.

It took me a number of months before I bought a certificate that was over 6 figures on a shopping center. However, you don’t want to start there because it’s going to make you nervous. So, start small and grow from there.


Tax lien certificates are an excellent passive investment that pay interest rates of 16%, 18%, 24%, or even as much as 36%. Additionally, if you don’t get paid, then you get the property mortgage-free.

This is a low risk, high yielding investment that’s secured by real estate. Compare the rates of tax lien certificates to other low risk investments, like bank certificates of deposit, and you’ll see that tax lien certificates are the clear winner!

If you’d like to know more, Ted provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops, web classes, and personal coaching with certified coaches.

Ted Thomas classYou can learn how to reap the huge rewards from tax lien and tax defaulted property investing! Get started today by taking advantage of Ted’s Free Master Class! Act now, it costs you nothing and will give you a big head start!

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Ted Thomas

Ted Thomas is America’s Leading Authority on Tax Lien Certificates and Tax Deed Auctions, as well as a publisher and author of more than 30 books. His guidebooks on Real Estate have sold in four corners of the world. He has been teaching people just like you for over 30 years how to buy houses in good neighborhoods for pennies on the dollar. He teaches how to create wealth with minimum risk and easy-to-learn methods.

The Ted Thomas Difference:

  • Ted is recognized as America’s Tax Lien Certificate & Tax Deed Authority and has been helping people with investing in tax defaulted properties for over 30 years.
  • Ted has built a team of certified coaches that have 70 combined years of auction experience and are available to his students by phone to guide and mentor you to avoid getting overwhelmed or worse, losing money
  • Ted has ironclad PROOF that what he is teaching you does work. With hundreds of successful students providing testimonials and a 4.9 Google rating which is unheard of in this industry.
  • Ted and his staff don’t hide behind a website; they can be reached during office hours at 321-449-9940.

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