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Kindle Notes & Highlights
Tax liens don’t depend on a strong economy or the success of a rescue plan to make money.
Unpaid taxes become a lien on the property. This means that the tax obligation is recorded in the government’s property records, and until the taxes are paid, the lien remains. If the taxes are not paid for a long enough period, the owner will lose the property. Meanwhile, a penalty of 8% to 50% per year is being added to the amount of the lien. Having a lien on the property means that nobody can buy the property without being subject to the lien. Government-issued tax liens are super safe; they’re superior even to first mortgages.
Tax lien certificates, like other income investments, carry no market risk. Delinquent property owners are compelled by law to pay high rates of interest; they have no real choice in the matter except to lose their properties.
There have always been more tax liens than demand from tax lien investors. Not at every time and at every place, but always and in many places.
