You and your California tax lien certificates may prove to be quite the safe as well as profitable investment. Investing in them is a truly safe investment since they get issued by the state to investors in order to cover funds that delinquent taxpayers owe but hasn’t paid.
However, this doesn’t mean that you’ve bought the rights to a delinquent taxpayer’s property. This means that you’ve only gotten documented proof that you’ve paid the delinquent taxpayer’s taxes. Thus, when the owner finally chooses to pay taxes, you, as the tax certificate holder, are going to get repaid for the initial investment you’ve originally paid.
You’ll get the initial investment you’ve given plus an investment return, which comes in the form of late fees, or liens, the state charges to the owner of the property who wasn’t able to pay their tax on time. This fee that gets charged will be collected and then forwarded to you. This is where you’ll benefit from your California tax lien certificates.
Tax lien certificates are guaranteed by properties that govern them. Interest rates are predetermined and they have no relation whatsoever with the stock market, so you’ll know what your return rate will be. A delinquent property holder pays late taxes more than 98% of the time and this is what makes investing in California tax lien certificates a great investment once you absolutely know what to do.
If that didn’t send your mind to flights of financial fancy, you should consider investing somewhere else. Many a wealthy investor has made use of California tax lien certificates for quite some time now. With guaranteed interest rates, more than a 98% success rate of delinquent taxpayers paying you back as well as the California tax lien certificate getting back up by the properties themselves, you can be sure that this investment is definitely worth the effort.