Realty411 Magazine Featuring Lee Arnold from Cogo Capital | Page 50
TED'S TIPS
Making Money
and Understanding
Tax Lien Certificates
Ted Thomas
America's tax lien certificate
and tax defaulted property authority
T ed Thomas, bestselling author
and publisher is best known as
America’ s Tax Lien Certificate
and Tax Deed Authority.
Thomas has sat for more than
200 radio and TV interviews,
most recently on ABC, CBS,
NBC and Fox and he has been
recognized in Newsweek, USA
Today and the Wall Street
Journal. Ted Thomas is the
goto guy when people want to
discover how to invest in
secure government certificates
that pay 16% and 18%.
www.TedThomas.com
By Ted Thomas
T
he simplest way to
understand tax lien
certificates is to realize all
real estate is taxed by the county
and sometimes the county and
municipality. Property taxes are
collected to provide many different
benefits to citizens of the county,
for example property taxes pay for
schools, they pay the sheriff’s
department, they pay for
firefighters, of course the roads
have maintenance, they also pay to
help the hospitals and libraries.
These are just a few.
Every property owner is assessed
property tax one or more times a
year. In many states if the property
owner does not pay the property
taxes the county or municipality
50
will issue a tax lien certificate.
Anyone can purchase a tax lien
certificate. They could be valued
at only $50 or they could be
$5,000. The county will auction
the certificates. The reward for
purchasing a tax certificate is the
counties pay a high rate of interest
on those certificates.
The rates could be as high as
16%,18%, 24%, all the way up to
36%. When the property owner
finally pays the property taxes,
they will recover the certificate, in
other words they will pay you
whatever you paid for the
certificate plus the outrageously
high interest rate.
So, to summarize this process,
you the investor, will invest directly