Purchasing tax lien is a well kept real estate investing secret in the past but not for now. However, many people are still not aware of the profit it brings, and the big potential of such investment.
The tax lien certificates you buy earn 18% to 50% or more annually. This also depends on the state where you buy the lien certificates. And if the homeowner fails to make the payments, you still have the court to act upon the foreclosure of the property. These are the reasons why buying lien certificates allow you to have the opportunity of a higher yield from the interest, or the actual title to the property.