There are many forms of investment available in the market from stock market to real estate and many others. All investors have one aim in common and that is to get a higher return at a lower risk. What everyone is looking for is an investment that is safe and can give a passive cash flow potential.

Why not invest in something that the rich people have been investing from decades. Have you heard of tax lien investment and tax deed investment?

Most of the US government states collects a property tax that the property owner pays in a regular basis. If the taxes are not paid in specified amount of time, the state will sell the debt to the investors. This is called the tax lien system of investment. They need someone to pay the debt, as the taxes are important in the operations of the state. The property owner will then need to pay the investor the sum of the unpaid tax plus the interest rate. The interest rate ranges from 16-50% depending on which state. Not many other forms of investment can match a return as high as in the tax lien investment.

Now what is tax deed investment and how does it differ compared to tax lien investment. Tax deed investment is when the government sells the tax deed of the property with unpaid taxes for a certain period of time. In the tax deed investment, the state will sell the full ownership and rights to the investor. This is done after a legal notification to the property owner. In most cases, the properties are sold at a price much lower than the market value. The minimum bid usually is the total cost of unpaid tax and other service costs. Isn’t this system a good candidate for investment? Tax deed investment allows the investor to own the property at a lower price, which after that you can re-sell, based on the market value. There is no other form of investment that can give a better offer.

And like any other forms of investment, you need to do your own research of the guidelines involved in the selling, payment arrangements, etc. Whether you are going for tax lien investment or tax deed investment, its important to contact the respective counties of the rules and the regulations that are applied. Note that the rules vary county by county.

Either tax lien investing or tax deed investing is safe. Safe because the full process is coordinated, arranged and documented by the government county. These types of tax sales are held monthly, quarterly or semi-annually depending on the county. Anyone can participate in the sales and you don’t have to be an attorney or a professional investor. Everyone can participate in the tax lien investment and tax deed investment.

There are many strategies that can be applied to guarantee a high rate of return of your investment. Most of the successful investors employ a professional help. Leveraging with an experienced professional can minimize the losses and helps you earn faster and with higher returns. So, it is always better to get a professional advice if you can.