Exploring Tax Lien Certificates

I first heard about tax lien certificates about a year ago. Sometimes described as the secret of the wealthy, TLCs allow you to purchase the right to collect taxes and penalties on properties that owners have not paid their real estate taxes. After you buy the TLC, there is a redemption period during which the property can be redeemed by paying the outstanding taxes and penalties. If the owner still doesn't pay, the TLC owner can end up owning the property for only the cost of the tax lien.

The strategy is fully described in Profit by Investing in Real Estate Tax Liens. Each state in the US does this a bit differently; some states offer tax deeds, which actually give you immediate ownership in the property. Apparently you have to get information from the real estate office in each county on when the auctions are offered, how registration is done etc. Supposedly this is a very safe investment since you have a lien on the property. I will start with my own state and neighboring states so I can investigate properties prior to the auction. I've also received much useful information from Professor Profits.

What about eBay. I put up my first book for sale yesterday (instead of the five I hoped for). It's a bit tricky figuring out all the angles in pricing, but I'm sure it will get easier when I've done it for a while. My wife and I have identified at least 25 books so far that we can try to sell.