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Tax Lien And Tax Deed Investments In Your Self-Directed IRA

April 9, 2020

Investing in tax liens and tax deeds with a self-directed IRA can help diversify your portfolio and get real estate exposure without investing in a property. So what are tax liens and tax deeds and how can a person benefit from them?

Property taxes continue to grow in thousands of counties across the country. In order to fund the necessary county services, many states collect delinquent property taxes through tax lien and tax deed auctions. Each state holds these auctions a bit differently, but in all cases, these tax deeds or tax liens can be purchased within a self-directed IRA.

Buying tax lien certificates can be a breath of fresh air for most investors. The tax lien strategy is simple. The returns are great, and they’re guaranteed with real assets! However, investors have to know what they are doing and take the time to research the properties upon which they buy liens.