Tax Lien Investment

Tax lien investment is a way for investors to earn returns by purchasing the rights to collect unpaid property taxes. When property owners fail to pay their taxes, the government can sell a lien on the property, which is essentially a claim to the unpaid tax amount. Investors buy these liens at auctions, hoping the property owner will pay the overdue taxes, plus interest, to reclaim their property. If the owner defaults, the investor might ultimately be able to foreclose on the property, potentially acquiring it for a fraction of its value. It's a high-risk but potentially high-reward investment strategy.