There are three ways to calculate property taxes in the United States. One way is using comparable value of other similar properties in a given neighborhood to determine the taxes. The second way is calculating Net Operating Income where there is no “comparable” property. The third way is using Replacement Cost to determine the value.
A property tax lien is a lien against real estate that is mandated by state law to guarantee the collection of property tax. As you probably know, real estate owners must pay taxes on a tri-annual, semi-annual, or annual basis. For the county this revenue is how local governments are able to operate things like schools, fire departments and highway construction. When property taxes are unpaid:
· The county must have a way to collect these funds to continue operating
· Many states offer annual public auctions to ensure the collection of property tax revenue
· Investors at the auction are offered the ability to purchase a lien and earn a high percentage rate on the investment
Before you begin investing, it is important to understand the benefits of this investment strategy. Purchasing Tax Lien Certificates is not like purchasing stock in a bio-tech company which may or may not produce the next wonder drug. It is more like putting money in a bank savings account, where the return is guaranteed and your original investment will be returned to you.
It is as safe as almost any type of conservative investment. However, unlike putting your money in the bank, Tax Lien Certificates provide a remarkably high yield return. Here are some of the chief benefits of committing a portion of your investment dollars into this strategy:
· You make a guaranteed high rate of return
· The interest rate is fixed
· The penalty for each lien you purchase is fixed
· Your money works for you 24/7
· The investment has continuous longevity
To start investing in Tax Liens Certificates and Tax Deeds immediately, visit: http://www.TaxLienHolder.com.
To learn other Cash Flow Strategies, visit: http://www.theCashFlowAdvisor.com.