Tax Lien Fund

A Tax Lien Fund is an investment vehicle that primarily invests in tax lien certificates. These certificates are issued when property owners fail to pay their property taxes. The local government sells these liens to investors, allowing them to pay the taxes on behalf of the owner in exchange for the right to collect interest when the owner pays their taxes. If the owner doesn't pay, the investor may eventually foreclose on the property. Tax Lien Funds pool money from multiple investors to diversify risk and potentially earn returns through interest payments or property acquisitions.