Real Estate Tax Lien Investments For Tax-advantaged Returns

How Does Tax Lien Investing Work

Investing in tax liens through purchases at a tax lien sale is simply that-a financial investment. All Tax Obligation Sales in Colorado are performed per CRS 39-11-101 thru 39-12-113 Following the tax lien sale, successful bidders will certainly receive a copy of the tax lien certificate of acquisition for each home. Spending in tax liens with purchase at the tax obligation lien sale is just that, an investment.

Investing In Real Estate Tax Liens & Deeds

When a homeowner falls behind in paying home tax obligations, the county or town might position tax lien versus the building. Instead of waiting for payment of tax obligations, federal governments in some cases make a decision to sell tax lien certifications to exclusive investors. Your revenue from a tax lien investment will certainly come from one of 2 resources: Either passion payments and late charges paid by home owners, or foreclosure on the building occasionally for as little as dimes on the dollar.