How Do You Invest In Tax Liens & Deeds?

Investing in tax liens and deeds can allow you to generate extra income. You'll follow a similar process for both lien and deed investment. Tax liens are liens imposed on a property by a county, a state or the federal government to ensure the payment of owed taxes.

If the taxes are not paid by the owner within a specific period of time, the lien owner receives the property. Tax deeds are also imposed by a county, a state or the federal government and involve the actual purchase of properties being liquidated because of past-due taxes. The process varies from state to state, whether they offer tax liens or tax deeds.

Choose a tax-lien state that best fits your interests or needs. You may want to research which counties in the state give the best rate of return if the state allows county regulation of interest rates. You can research the over 3,000 possible counties by visiting www.naco.org or by going to a specific state's website.

Visit the county's department of finance or treasurer' ... more.

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