Real Estate Notes | Tax Lien Certificate Investing – 16 percent return on your money or more

An emailer recently asked me about where to buy tax liens online. This got me thinking that perhaps some of you reading this blog right now is thinking the same thing too.

So I will offer you the same answer I gave this person.

Anyone in the world can buy tax liens in the United States. HOWEVER, you must incorporate a business entity here. I recommend a cheap LLC or S-Corporation. If you file the paperwork yourself, it will be $50. Our corporation laws allow foreigners to buy American assets (as long as they basically stay in the United States) through corporations. The only exception to this is if you’re a multi-billion dollar governmental entity that believes in no human rights (China, Many Middle Eastern nations, etc), then you can’t incorporate. I’m assuming though you’re just looking to make some money so in general the US Government should not give you any problems unless you’re suspected of terrorism.

Depending on which websites you go to, you can browse for different types of tax liens online. However, most government municipalities require that your physical presence in some form to purchase said tax liens. They sometimes do list actual tax liens for sale in some states, many of which are for less than $500. Personally I would be cautious and do a lot of research as the tax delinquent may have skipped town or fled the country, and has no intention of paying (it’s not like that all the time but it’s a red flag). If you’re new to tax lien investing, which is why most people gravitate to this price range, I’d be on heightened alert.

I still recommend that you read the tax lien buying guide that I recommend here. It will help you avoid many of the pitfalls of investing in this business and hold your hand in some of the more complicated technical details of actually purchasing tax lien certificates for investing. You can read the guide by click here.