Is Arizona a tax lien or tax deed state? Well, surprise surprise. It’s a tax lien state.
I’m Ted Thomas, and today not only am I answering your question “Is Arizona a tax lien or tax deed state?” I’m going to explain how tax lien certificates work in Arizona and show you how to make money from tax lien investing.
I started investing in tax liens back in the days when I had black hair, and I was skinny. It’s been a long time, over 30 years. For the last 25 years, because so many people ask me questions, I’ve come up with these lessons to help you learn quickly, and you’re going to learn a lot.
So let’s get started and answer the question, “Is Arizona a tax lien or tax deed state?”
Today in “Is Arizona a Tax Lien or Tax Deed State? The Answer May Surprise You.” I’ll cover the following topics:
Table of Contents:
- Arizona Tax Liens
- Maricopa County Tax Liens
- How Tax Lien Certificates Work
- Why Tax Lien Certificates Are a Secure Investment
- Acquiring Property Through Tax Liens
- Buying Tax Lien Properties Without a Mortgage
- Tax Liens Are a Low-Risk, High-Yield Investment
- States That Sell Tax Lien Certificates
- Earn Annualized Returns on Tax Liens
- Why States Sell Tax Lien Certificates
- Conclusion
Arizona Tax Liens
We’ve established that Arizona is a tax lien state, but what does that mean to you? It means that the counties are going to sell a piece of paper that has value.
The value in Arizona is up to 16%. Perhaps 16% doesn’t sound like a lot, but when you think about it, the banks are paying 1% or 2%.
There are 15 different counties in the state of Arizona. They all sell tax lien certificates, so I’m not going to discuss all of them. However, let’s talk about Maricopa County to get started.
Maricopa County Tax Liens
Maricopa County is Phoenix, Arizona. About two million people live in that county, and they have many tax lien certificates available.
I used to conduct big classes there. Not 30 or 50 people, but 150 to 200 people, and I would take them to the auction. Nowadays, people do it online, and we teach you both ways to do it.
In Maricopa County, the lowest amount I’ve ever seen them sell is 15,000 tax certificates. What does that mean? Well, that means 15,000 people just in Maricopa County alone did not pay their property tax. So, the county has a shortfall.
I’ll come back and tell you more about that in a minute.
15,000 is the smallest. During times when the economy is bad, I’ve been to auctions in Arizona where they had 32,000 certificates just in that one county. Now, keep in mind there are 15 different counties.
How Tax Lien Certificates Work
How do tax lien certificates work? Well, they work like this. The local county didn’t get paid the property taxes, so what do they do?
They issue a piece of paper, a certificate, and if you buy it, it gives you power.
You now control that property. It can’t be sold. It can’t be remortgaged. Nothing can happen to that property until you get paid. But you didn’t want a property.
You bought a tax lien certificate because you wanted to earn 16% on your money. That’s what they pay in that particular county.
Why Tax Lien Certificates Are a Secure Investment
So, thousands of tax lien certificates are available, and you bought your one.
Do you have to do any work? Well, no, because the certificate is predictable; it’s certain, and it’s secure.
What you did when you bought that certificate was you invested your money with the government, and you’re going to get the money back from the government.
Let me say that again. This is a predictable, certain, and secure investment. This is the most secure investment that you can find in America today.
How can I say that? Because these have been around for 200 years. Every word you’ll hear from me is 200-years old. I just practice it, so I can tell you about it, but here’s how it works.
You give your money to the government, and the government gives you a tax lien certificate in return.
Now you’ve invested with the government, and your money is protected by the property tax code. Nobody can ever interfere with what’s going on because it’s protected by the property tax code.
When the property owner comes in to pay the tax, they have to pay you whatever you invested. In other words, you get all of your money back plus the high interest rate.
This is a powerful, powerful way to make money.
Acquiring Property Through Tax Liens
Understand these important words: You get paid, or you get the property.
If you invest in a tax lien certificate, the local government will give you a guarantee. The guarantee is this:
- You’ll get all your money back plus the interest rate that’s listed on your certificate, or
- If you don’t get paid, you will get the property.
Let’s think about that just for a second.
When you buy a tax certificate, taxes generally are 1% or 2% of the value of the property. So, you just bought a property at a deep discount.
Buying Tax Lien Properties Without a Mortgage
I know exactly what you’re worried about. You’re saying, “Ted, I don’t want a property with a big $300,000 or $500,000 mortgage.”
Well, the mortgage is wiped off the property.
How did that happen? The law in every county and in every state wipes out the mortgage.
So, the mortgage is extinguished. It’s gone. It’s terminated from the property.
Whenever you buy a tax lien certificate or a tax deed, the mortgage is wiped off the property. That’s why this investment is so powerful.
Tax Liens Are a Low-Risk, High-Yield Investment
Once you invest in tax lien certificates, you’ll find it very addictive.
As I said earlier, this is the safest and most lucrative investment in America today. Why? Because you’re going to give your money to the government, and you’re going to get checks back from the government.
It’s never going to get any safer than that.
States That Sell Tax Lien Certificates
We’ve covered tax lien certificates, so you understand the answer to the question, “Is Arizona a tax lien or tax deed state?” It’s a tax lien state.
Half of the states in the United States will sell tax lien certificates.
You could go to Florida. They pay 18% in Florida. If you decide to go to Iowa, you could earn 24%.
Go here for in-depth information on all the states that sell tax lien certificates.
Earn Annualized Returns on Tax Liens
In most of these states, those returns are annualized returns.
What does annualized mean? It means the whole year.
For example, 18% means one and a half percent each month. So, if it stayed outstanding for six months in Florida, you would make 9%.
If it stayed outstanding in Arizona where they pay 16%, it would be about a percent and a quarter for each month, and at the end of six months you would have 8%. You’re getting the idea.
Why States Sell Tax Lien Certificates
Why are the states doing this? The county needs the money and needs the money badly.
Why do they need it? They need to pay the employees of the county. They have to take care of the roads and maintain the schools, pay the teachers, police, and firefighters. All these bills have to be paid by the county.
So, you understand why tax liens are taking place. Every property owner must pay the tax. If they don’t pay the tax, the government will take action because now it’s affecting the county’s payday.
By purchasing tax lien certificates, you are helping local communities, as well as profiting from an excellent passive investment that’s safe, secure and predictable.
Conclusion
We hope you learned a lot from Ted’s lesson, “Is Arizona a Tax Lien or Tax Deed State?“
Arizona is a tax lien state that pays an annualized rate of return of up to 16%. If you don’t get paid, you get the property, and you get it without a mortgage.
Arizona has 15 counties, and in Maricopa County alone, they could have 15,000 or more tax lien certificates available. It truly is a business of abundance.
When you purchase tax lien certificates, you’re investing with the government and getting paid by the government, making it one of the safest investments in America.
If you’d like to learn more, Ted Thomas can teach you. For over 25 years, Ted’s been showing students how to successfully invest in tax lien certificates and tax deeds.
Ted Thomas offers full support and a complete training with home study courses, Q&A sessions, live tutorials, workshops & web classes, and personal one-on-one coaching.
Ted is so confident that this can work for you that he wants to give you the opportunity to see it for yourself today for FREE!
If you’d like to learn how to earn lucrative profits in real estate easily, painlessly, and safely, you can get started today at no cost by taking advantage of this FREE Gift.
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.
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