http://www.REIClub.com - Are Tax Sales a Good Investment For Real Estate Investors? Here Is A Quick Video On The Pros And Cons Of Investing in a Tax Sale<br /><br />Tax Sale vs. Tax Lien<br /><br />- Tax Lien:<br />a tax lien is a lien imposed by Federal or state law to secure payment of back taxes.<br /><br />- Tax Sale:<br />Refers to property being sold by a taxing authority or the court to recover delinquent taxes.<br /><br />Tax Lien: <br /> - your initial investment PLUS a guaranteed percentage<br /><br />Tax Sale:<br /> - Average Price 30-60 cents on the dollar<br /><br />- Right of Redemption<br /><br />Tax Lien:<br /> - lien plus interest and any other fees<br /><br /> Tax Sale:<br /> - interest plus the costs incurred to foreclose<br /><br />Tax Liens / Tax Sales Pros<br />- Pennies on the Dollar<br />- State Authorized Returns<br />- Volume<br />- First In Line<br />- County collects<br />- No Maintenance<br />- No Landowner Liability<br />- Free and Clear<br />- Guaranteed ROI<br /><br />Tax Sale / Lien Certificate Cons<br />- Specific Regulations<br />- Homeowner Bankruptcy<br />- Worthless Property<br />- Additional Liens<br />- Competition<br />- Lien Laws
