What are the benefits of tax lien investing?

 

For Investors:

1. Earn interest and penalties provided by law for every month taxes go unpaid
2. Investments are secured by a lien on real property

For Delinquent Taxpayers:

1. The redemption time period is unchanged or extended
2. Interest rate is often less than the statutory rate
3. Payment plans may be established by the lien purchaser
4. Statutory protection continues after lien sale
5. Collection and notification procedures are controlled by state statutes

For the Government:

1. Receipt of immediate cash for delinquent taxes
2. The certainty of cash flow to improve future budgeting
3. Transfer potential liabilities for nonpayment of tax to the private sector
4. Increase revenues without having to raise taxes or increase public debt
5. A decrease in delinquency rates

For Taxpayers:

1. A decreased risk of future tax lien increases
2. Reliable funding for government programs
3. Assurance that everyone will pay his/her fair share
4. Privatization of government functions
5. Protect property values by the improvement of blighted properties