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Mary Porter - About Author:
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Making and preserving capital is important in the best of times, and even more so in the tough economic times we live in today. And you have many options where you can invest your available funds. The stock market, bank CDs Nike Vapormax Mujer Baratas , mutual funds, money market accounts, the mattress. But what to choose, and how to diversify your available capital?
Some are fairly risky but with high potential returns (the stock market, junk bonds) Nike Vapormax Niños Baratas , some low risk but with low returns (money market accounts). Or no returns (the mattress).

Another potential avenue for investment - real estate tax liens. You may already know that tax liens and tax lien certificates are applied to local properties by city or county tax authorities to collect property taxes. You may also know that the taxing authority may foreclose on a property to pay off the tax owed.

Did you also know that you, as an individual, can purchase tax liens on local properties? They can be bought by auction at the county court house or even in some cases online. If the property owner does not pay off the lien (to you), then you can initiate foreclosure proceedings and acquire the property for only the cost of the lien, which considering the market value of the property Nike Vapormax Plus Baratas , could be only pennies on the dollar. A pretty good deal, as you can use the property or sell it off for a nice gain.

Now most property owners have one to three months, on average, depending on locale, to pay the tax lien and keep their property. And mostly 90 to 95% do so. But here is the kicker - while you are holding the lien you are paid interest at a fixed guaranteed rate (usually set by the county or state). Some rates are as high as 10-18%! Certainly much better than a three month CD from the bank and possibly even safer.

So here is my suggestion if you are looking to invest some short term cash: acquire some real estate tax liens for your portfolio. Constantly buying one or two every month or so and rolling them over will provide a much better return on your cash than any CD or money market fund. You can pick and choose propertiesliens to acquire Nike Vapormax Flyknit Baratas , depending on the property and your budget. And it is risk free, as the local government is the one guaranteeing and paying the interest.

An added bonus - if the lien is not paid you can acquire the property itself. You may not be able to wheel and deal like Donald Trump, but you can potentially acquire several properties and sell them for pretty decent gains. Earn interest on the lien, or earn interest and acquire a property. A win-win situation in any case.

So if you are looking for another way to diversify your portfolio and invest some of your free cash at rates better than the few percent the banks will pay you, this could be a valid option for you.

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