Not all States Offer Tax Lien Certificates

Currently, tax lien certificates are offered in about half the states in the United States, the remaining half offer what are known as tax deeds. Both tax lien certificates and tax deeds are a way for local governments to recover lost property tax revenue to fund public school, police departments, fire departments, libraries. and public roads. For educated investors, both can offer a very profitable investment opportunity.

Tax lien certificates are not necessarily more profitable or advantageous over tax deeds. The tax lien certificate system is different than the tax deed system but both have their advantages and are profitable in their own way.

It’s important to understand that you don’t have live in a state that offers tax deeds to get tax deeds, and you don’t have to live in a state that offers tax lien certificates to get tax lien certificates. Most states allow you to purchase either tax lien certificates or tax deeds from the comfort of your home.