| There are three ways to calculate property taxes in | | | | · Many states offer annual public auctions to |
| the United States. One way is using comparable value | | | | ensure the collection of property tax revenue |
| of other similar properties in a given neighborhood to | | | | · Investors at the auction are offered the ability |
| determine the taxes. The second way is calculating | | | | to purchase a lien and earn a high percentage rate on |
| Net Operating Income where there is no "comparable" | | | | the investment |
| property. The third way is using Replacement Cost to | | | | Before you begin investing, it is important to understand |
| determine the value. | | | | the benefits of this investment strategy. Purchasing |
| A property tax lien is a lien against real estate that is | | | | Tax Lien Certificates is not like purchasing stock in a |
| mandated by state law to guarantee the collection of | | | | bio-tech company which may or may not produce the |
| property tax. As you probably know, real estate | | | | next wonder drug. It is more like putting money in a |
| owners must pay taxes on a tri-annual, semi-annual, or | | | | bank savings account, where the return is guaranteed |
| annual basis. For the county this revenue is how local | | | | and your original investment will be returned to you. |
| governments are able to operate things like schools, | | | | It is as safe as almost any type of conservative |
| fire departments and highway construction. When | | | | investment. However, unlike putting your money in the |
| property taxes are unpaid: | | | | bank, Tax Lien Certificates provide a remarkably high |
| · The county must have a way to collect | | | | yield return. |
| these funds to continue operating | | | | |