Learn Why Tax Lien Investing Works 

Ted Thomas discovered the tax lien business 30 years ago and wants to help you turn a profit today. You might be wondering how tax lien investing works and why it’s worth it.

You may watch the video above, or if you prefer, read the transcript below.

What Is a Tax Lien?

A tax lien is a legal claim against the assets of an individual or business that fails to pay taxes owed to the government. For example, when a property owner does not pay their property taxes, the city or county where the property is located has the authority to place a lien on the property.

The collection of real estate property taxes is a major top priority in every taxing district in the USA. If a county were unable to collect those taxes in a prompt fashion, it would be unable to supply the public with essential services such as fire departments and schools for our kids.

To avoid this problem, all counties in 26 states throughout the United States will position a tax lien on any residential or commercial property with overdue property taxes and then offer the delinquent tax financial obligation to financiers.

How Tax Liens Work

You can jump onto the county website, search for these tax liens, and purchase them through a tax lien certificate.

In the old days, you would have to take a trip countless miles across the country to auctions if you wanted to buy tax liens. Now you can do your tax lien investing from the comfort of your own house utilizing the web.

In many cases, investors can purchase the property tax liens from a municipality, allowing them to collect payments from the property owner and take ownership of the property. In some cases, they may foreclose on the property with the intent to acquire the title.

This is where the investment opportunity takes place, as you can make money back and an additional percentage in interest based on the county and location of the property. For instance, you can make an extra 18% back in Florida. Or you can make as much as 36% back in Illinois.

The main advantage of tax lien investing to the brand-new or smaller sized investor is that there are many countless tax liens for sale at every spending plan level.

Why Tax Lien Investing Is Safe

Tax Liens are frequently called the “Fort Knox” of financial investments. The continuous fluctuation of interest rates do not have any affect whatsoever on tax lien certificates since the interest rates of tax lien certificates are mandated by state law.

Basically, you are buying from the government. When they have actually gathered the past due taxes, you will send them the tax lien certificate, and in return, they will send you a check covering the cash you paid for the certificate plus any exceptional interest.

With inflation on the rise and large numbers of Americans now searching for much safer investments for long-term wealth preservation, the majority desire greater returns than they can get from putting their money into bank CDs.

Numerous investors are seeking information about tax liens, as investing in tax lien certificates will allow you to earn safe, annualized returns all ensured by the government.

Learn More About Ted Thomas And Property Tax Liens

In conclusion, with tax lien investing, everybody wins. The county gets their cash. The tax delinquent taxpayer gets more time to pay their currently unpaid property taxes, and the financier gets a real estate-secured, high-yielding investment that pays an annualized return as high as 36%.

Please browse our website for more information about this fantastic investment opportunity and take advantage of our library of educational videos to start investing today!

why tax lien investing works

Read the Video Transcript:
Why Tax Lien Investing Works

Randy: Hey, so maybe you’re interested in tax lien investing or maybe you’re just looking about some information about what the heck tax lien investing is. Well, you’re at the right place because this is Ted Thomas and he knows a little two about this business as we are talking. Ted, why do you like this? How did you get into this whole tax lien investing?

Ted: Well, I was fortunate to discover this business 30 years ago. It’s been around for 200 years. But I kind of ignored it, everything that I talk about is 200 years old. But 30 years ago, I discovered that there was a business where there’s millions of properties in the United States, but a small amount of people don’t pay their tax.

Ted (cont’d): Now, if they don’t pay their tax, well then the local county has a problem. So regular traditional real estate, they have houses they are selling, they have vacant land, sometimes vacant residential land that they’re selling. They’re selling small apartments, office buildings. All right? That’s regular real estate. But what happens if they don’t pay their tax?

Ted (cont’d): Well, now it’s a whole new ballgame. Now the local county has a problem. What’s the problem? The problem is if the county doesn’t collect the property tax, how are they going to pay the police department? How are they going to pay the fire department? How are they going to pay the county employees? You’re getting the idea.

Ted (cont’d): So the county said, “Wait a minute. “You didn’t pay your tax.” So they’re going to slap your hand. They’re going to say, “If you didn’t pay your tax,” they’re going to issue a piece of paper, just a simple piece of paper. Like this piece over here, this is a tax certificate. This is what it looks like. This is what a tax certificate looks like. All right, they’re going to issue those and then tell everybody that they issued it.

Ted (cont’d): They put it in the newspaper and they put it up on the county website. Now, anybody can buy that certificate and pay the defaulted taxes. Now, why would you want to pay someone else’s defaulted taxes? You say, “I don’t want to pay my own tax, let alone paying somebody else’s.”

Ted (cont’d): All right, well, you want to pay the taxes because if someone paid my tax, what they could earn is, in Florida, for example, they could get all their money back when I pay, and most people are going to pay, they’re not going to lose a house. All right, they’re going to pay. When they pay, they have to pay up to an additional 18%.

Ted (cont’d): Now if you go to the bank, you’re lucky to get 1%. So now you could earn 18%. Go into Texas, you could make 25%. You go into Illinois, you could make 36%. So, I love these tax certificates.

Ted (cont’d): Now why did I really love them? Let me tell you this. Nobody’s going to believe me, but this is the true deal, all right? The county issued the certificate, the piece of paper, right? They issued it. So that means if I’m now an investor, so let’s put our hat on, now we’re an investor.

Randy: All right.

Ted: Now, you can’t buy them from Ted Thomas, you buy them directly from that county, your county. You buy the certificate from them, they hold the certificate until Ted comes in and pays. When I pay, they’re going to call you up, they’ll do it on text now, they’ll say, “Send the certificate in.” They’ll send you all the money you invested, all the money you invested you get back plus 18%. Is that a good investment?

Randy: That’s pretty nice.

Ted: I’ll say it is.

Randy: That’s really nice.

Ted: So I invest with the government, I get a check back from the government. And I know what you’re thinking. You said, “Wait a minute, Ted. “If they wouldn’t pay the government, “why on earth would they pay me?” I’ll tell you why they’ll pay you. Because if you own this certificate and you don’t get paid, you get the property without a mortgage.

Ted (cont’d): I know you don’t believe me, but it’s the law in all 3,000 counties in the United States. If the person doesn’t pay the tax certificate, you get the property without a mortgage. I don’t make the rules, I’m just telling you the way it goes.

Randy: So if I’m hearing this correctly, I’m investing in, I’m basically paying the taxes on your house, but that’s my investment. And that’s working for the city because, or the county or the state, because obviously they need money to run things, the fire department. And then, I’m basically, when you do pay your taxes, it’s really coming to me, ultimately, plus that 18% or so. And then if you don’t do that, I get your house?

Ted: That’s the law in the United States of America and it’s been that way for 200 years.

Randy: Wow.

Ted: I didn’t invent it, I just discovered it 30 years ago. I said, “Wait a minute. What are they going to do?” If I can buy… You know what happens? If you raise your hand like I’m doing now, and you buy that certificate, you go home and you pray that they don’t pay. Why? If they don’t pay, you get their property.

Randy: You get a house.

Ted: For just 1% of back taxes. How would you like to have a property for 1%? I don’t make the rules.

Randy: This sounds kind of interesting, Ted. And let me, if the folks watching, you want to hear more about this, what’s the best way? What’s their next step?

Ted: Easiest thing always to do is when you’re watching me, folks, I have a website. It’s called tedthomas.com, simple as that. And we’ll show you tons of stuff there, lots of videos and whatever.

Randy: Great. You might want to head there right now. Again, that’s tedthomas.com. Check it out and we’re going to talk some here and you’re going to get a chance to learn some more when you watch some of those videos. So check it out.

Want to learn how to make money in real estate from tax lien investing? 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 Auction List offer.


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