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Distressed Assets & Bankruptcy

Tax Lien Certificate Investing (Statutory Interest Rates 8–24%)

Buy unpaid property tax liens from counties (28 states) — earn statutory interest 8–24% + possible property acquisition.

Overview

28 states + DC sell tax lien certificates when property owners fail to pay property taxes. Investor pays the county the delinquent tax, gets a certificate accruing statutory interest (varies: FL 18%, IL 18%, IA 24%, AZ 16%, NJ 18%). Redemption period 6 months to 3 years. If owner doesn't redeem, investor forecloses and takes property free-and-clear for cost of taxes only (often 5–15% of value). Auctions online (Realauction, Bid4Assets) and in-person. Due diligence critical — some liens are on worthless property.

Best fit
Passive-income seekersSelf-directed IRA investorsReal estate acquirers via foreclosure route
Estimated impact
8–24% guaranteed statutory return + property acquisition upside

Click Generate advisory deep dive for mechanics, IRC citations, a step-by-step execution plan, a worked numeric example on your profile, costs, risks, and this-week actions.

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