One investment niche that is often overlooked by investors is property tax liens. A tax lien is a legal claim against the assets of an individual or business that fails to pay taxes owed to the government. In general, a lien serves as collateral for a debt such as a loan like a mortgage. If the obligation is not satisfied, the creditor may proceed to seize the assets.
But these claims on collateral can also be exchanged and traded among private investors seeking this type of alternative avenue in order to generate above-average returns. In some cases, this unique opportunity can provide knowledgeable investors with excellent rates of return.
