Nobody likes the word “taxes” however there is a bright side to everything. You are able to make money with property taxes. For over 150 years the U.S. government has had a program to provide the counties with money needed when property owners failed to pay their property taxes. Tax certificates, also called tax lien certificates are liens placed by the county on a property owned by a delinquent owner. The county then sells the tax certificates to investors in order to recoup the money so then the county can continue to operate. The investor or the buyer of the tax certificate holds the lien on the owners’ property in exchange for paying the taxes to the county. In Florida, tax certificates can pay up to 18% interest; they also have what is called a face value which is the original delinquent amount or lien amount. If the tax certificate is not redeemed by the delinquent property owner within 2 years of issue, the investor who bought the certificate can submit an application for tax deed with the county. The county then advertises the property in the local newspaper and sets an auction date to be sold to the public. There are a few outcomes that can happen with the tax certificate investor. If nobody bids on the property the certificate investor receives the tax deed. If the property is sold to the highest bidder then the tax certificate investor receives the face value plus back interest. The certificate holder does have the option to bid on the property as well. It is important when purchasing tax certificates to ensure that the property is desirable in the event you become owner of it. Parcels of land that are 2 feet wide commonly do exist with tax certificates on them, so do you research. I have been investing in Florida tax certificates for many years and found the field to be very exciting!

For more information on Tax Lien Certificates