Welcome to "Building Passive Income Through Real Estate". This week we are talking about the advantages of Tax Lien Certificates. I will also be highlighting the principles of compounded interest and the Rule of 72. We are only four days away from another trip to Las Vegas to see Jason Tomei at WelcomeHomeLasVegas.com. Thursday is closing day for the four condos and we now have another under contract at $10,000 less.

Contents:
1. Tax Lien Certificates, what are they and why should I invest in them?
2. Return rates, what type of return do I need to become a millionaire?

Tax Lien Certificates, what are they and why should I invest in them?
by Kevin Davis

Tax Lien Certificates are not anything new, they have been around since the 1800s. The are used by the county and city governments to collect delinquent taxes by having investors purchase these certificates and hold first lien until the back taxes are paid along with penalties. The penalties are then passed on to the investor when the certificate is redeemed.

Not every state has a tax lien program, about 30 states currently have some form of tax lien sales at least annually. With most states, you can find information about the tax sales through either the county assessor or treasurer. The yield on the certificate range anywhere from 10% to as much as 50%. As you can see, this is an incredible return when compared to traditional investments such as CDs or Mutual Funds.

Clark County, Nevada Treasurer FAQ

These sales can be very popular attracting investors from around the country. Sales are usually published in the newspaper as well as listed in the public office of the treasurer. Many county also publish their property lists on the web. I am in the process of putting togethor a resource site for Tax Lien Certificates. What for it in the coming months at FreeForeclosureSites.com.

One thing to keep in mind, you are not purchasing certificates to build your real estate portfolio. Less than 5% of the properties reach the forclosure process, leaving 95% that are paid in full before the redemption period. Secondly, there is no limit to the number of certificates you can buy and they are also transferable.

David G. Eisenstein's California and Arizona Tax Lien Certificate Information

Maricopa County Tax Lien Information

Advertisement

Don't forget to check out the products and seminars we offer at http://www.inwiththenew.com/firehorse

Return rates, what type of return do I need to become a millionaire?
by Kevin Davis

Well, we already know about the great returns in Tax Lien Certificates but what does that mean for our investments?

Let's say you started with an initial investment of only $2,000. If that was growing at an annual rate of 8%, not accounting for taxes, after 40 years you would then have $43,000. However if you were able to get an annual return of say 18% such as what is available through Tax Lien Certificates, you would have $1,500,000. That is quite a difference isn't it.

Now if we take a look at the 18%, how long does it take to double our money. This can be calculated very easily by taking 72 and dividing by the rate of return 18. Every 4 years, our money doubles. However, at 8% are money doubles every 9 years.

Now using the "Rule of 72" you can set your goals where you want to be in the next 20 to 30 years and determine what investment vehicle and intial investment is right for you.

Advertisement

To receive a mentoring video email, submit your information on this website www.ireachyou.com/firehorse

Building Passive Income Through Real Estate is published by Kevin Davis, Editor & Contributing Author. Every week.

You can send your feedback to mailto:webmaster@firehorseinvestments.com.

Want to advertise in Building Passive Income Through Real Estate? View our statistics and don't hesitate to post your offer now!

Subscription information

This ezine is being distributed via Zinester - a mailing lists service and ezine hosting provider. You are receiving this ezine because you are a registered subscriber with Zinester. To unsubscribe or change your subscription preferences log in to your account at http://subs.zinester.com/. You can always retrieve your password by clicking the "Forgot your password?" link.

Zinester.com is a project by AGAVA Software Company.
Software development - as it has to be.