HomeVestors Knows That Tax Liens Can Be A Great Investment For Beginning Investors

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Investors who consider purchasing tax liens can earn a great deal of interest in the long term while not carrying a significant amount of risk.

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years. The company knows that real estate investors have a wide range of investments to consider. Most real estate investors never even consider alternative investments like purchasing tax liens and they should be aware of the benefits that they can provide. The beauty of tax liens is that an investor doesn’t have to deal with tenants or other typical problems that other investors have to deal with. On the other hand, there are certain negatives that are associated with tax liens, like waiting for years before earning a profit on an investment. Overall though, purchasing tax liens is generally regarded as safe and should be considered by beginning investors, if they can be purchased at the right price.

Beginning investors who have limited capital without the ability to finance large real estate investments should consider purchasing tax liens as a way to get into the real estate business and earn profits. The rate of return is easy to calculate when dealing with tax liens, although this investment may take years to materialize. There can be a great deal of competition when it comes to purchasing tax liens, as there are many investors who specialize in this industry.

Small time beginning investors should purchase tax liens in values below $500 because most other investors will be searching for values exceeding $500. When it comes time to bid for tax lien properties at auction, be sure to understand exactly how much to invest based on the investment potential of the property. Do not over bid and end up losing money on the investment. The beauty of a tax lien investment is that the profit can be calculated beforehand so be sure to do so in order to bid confidently.

Homeowners who want their property back have to pay the delinquent tax, a penalty and the accumulated interest. This can often offer a return on an investment in the double digits, which makes it a decent investment in a volatile market.

Be aware that after purchasing tax liens, the money invested in it could be tied up for a great deal of time. It may take years to earn a return on this investment so tax lien investing is suitable for young, beginning investors who have the time to allow their investments to materialize.

About HomeVestors of America Inc.

Dallas-based HomeVestors of America, Inc. is the largest buyer of houses in the U.S., with 50,000 houses bought since 1996. HomeVestors trains and supports its independently owned and operated franchisees that specialize in buying and rehabbing residential properties. Most commonly known as the “We Buy Ugly Houses®” company, HomeVestors strives to make a positive impact in each community. In 2012, for the seventh consecutive year, HomeVestors was among the prestigious Franchise Business Review’s “Top 50 Franchises,” a distinction awarded to franchisors with the highest level of franchisee satisfaction. For more information, visit www.HomeVestors.com.

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