#3 – Large Investments in Tax Liens

This will be a pretty short article because the concept is simple:

Tax lien investment comes with an education cost, a due diligence cost (investigating thousands of liens before the sale) and the ongoing obligation to maintain your lien legally (noticing, etc).

Plus the risk that you made a bad lien buying decision or that the propety becomes worthless while you own the lien.

In short, it’s not passive and it’s not guaranteed.

Are you earning enough extra interest to make all of this worthwhile?

If you have millions to invest, or do so on behalf of investors, that answer is likely “yes”. The increased return on that large amount of investment is more than enough to cover an occasional mistake or misfortune, and all the work required for the tax lien investment is spead out over more liens.

The small investor has to take on the same burden to investigate the liens he buys, and takes similar risks, yet he can only buy a few liens and only earns a premium interest amount of a thousand or two.

Not worth it!

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