Zero Risk Real Estate: Creating Wealth Through Tax Liens and Tax Deeds

What Makes These Types of Investments Zero Risk?

There has to be some risk in this, right? As I previously pointed out, there is an inherent risk in anything, even crossing the street. The trick is to conduct your research and due diligence to minimize risks to the point where they are virtually zero. But when you compare them to other types of investments, the advantages quickly become clear.

Tax lien and tax deed investments are much better alternatives to investing in stocks, bonds, and mutual funds because they are more certain and more consistent. Second, there are no middlemen, and no commissions for stockbrokers or mutual funds, so all the profit is yours. You know your investment is safe because you are dealing with the government, and it’s secured by their taxing authority. With a tax lien, you can determine exactly how much profit you are going to receive from the interest and penalties when the property owner redeems the property, and if the owner does not redeem it within the statutory period, then you can foreclose and acquire ownership at a deep discount. When you purchase a tax deed, you already know you are purchasing a property for pennies on the dollar with equity.

There is a saying in real estate investing that if you are doing it the right way: “You make money on a piece of property when you buy it, not when you sell it.” Let me explain. When you purchase a stock, you have no idea what it’s going to do in the future. You hope it’s going to go up but you can’t ...