Tax Lien Certificates make for a fascinating and potentially quite lucrative investment opportunity. They offer a number of advantages and benefits.
Most tax liens will be repaid, with significant fees depending on the Maryland county in question, which means you are highly likely to recover your initial investment plus interest. Given that tax lien certificates can be purchased in large amounts and sometimes at significant discounts (due to the auction process), they offer a comparably safe but solid investment.
Occasionally, however, they also pay off big time. If the owner is unable to pay back the Tax Lien and late fees, you gain the right, roughly six months after the Tax Sale you purchased it in, to foreclose on the property. As a result, Tax Liens have to be one of the most affordable ways to acquire property in Maryland.
That said, as with any investments, there are some risks, though these can often be avoided by inspecting the property before purchasing the Lien. This ensures it is a viable investment you can formulate an exit strategy for if you do end up with the property.
