http://www.REIClub.com - Are Tax Sales a Good Investment For Real Estate Investors? Here Is A Quick Video On The Pros And Cons Of Investing in a Tax Sale

Tax Sale vs. Tax Lien

- Tax Lien:
a tax lien is a lien imposed by Federal or state law to secure payment of back taxes.

- Tax Sale:
Refers to property being sold by a taxing authority or the court to recover delinquent taxes.

Tax Lien:
- your initial investment PLUS a guaranteed percentage

Tax Sale:
- Average Price 30-60 cents on the dollar

- Right of Redemption

Tax Lien:
- lien plus interest and any other fees

Tax Sale:
- interest plus the costs incurred to foreclose

Tax Liens / Tax Sales Pros
- Pennies on the Dollar
- State Authorized Returns
- Volume
- First In Line
- County collects
- No Maintenance
- No Landowner Liability
- Free and Clear
- Guaranteed ROI

Tax Sale / Lien Certificate Cons
- Specific Regulations
- Homeowner Bankruptcy
- Worthless Property
- Additional Liens
- Competition
- Lien Laws