To Good to be True?

Making Loans to Goverment at 8% to 10,000%

by John Fitzgerald, D.C.

 

In our first article, we explained what it means to be asset leveraged and why that is an ideal position compared to being just debt free.  In this second article in the series, we will explain how a true asset called tax lien certificates should be used as one of your investment vehicles.

            On our search for high yielding yet safe investments, we came across a government program that seemed too good to be true.  We then discovered that when you’re working with the government, things that may seem too good to be true, may actually be true.

            The government program with which we are speaking of is simply this: you can actually loan money to the government for spectacular returns while all of your money is guaranteed.  These loans come in the form of tax lien certificates.

You can actually loan money to the government for spectacular returns while all of your money plus interest is guaranteed.

 

            Tax lien certificates have recently gained more acclaim by being recommended in the best-selling books: Rich dad, Poor Dad, by Robert Kiyosaki and Multiple Streams of Income by Robert G. Allen.

            Let us explain more about Tax Lien Certificates. Tax lien certificates are liens against property that counties auction off. In simple terms, if a homeowner doesn’t pay their property tax on time, the county will auction off their tax bill.  When the homeowner pays their property tax you collect the paid tax plus whatever penalty interest has accrued in that time. The interest rates range from 8% to 25% depending on the state law in which the lien is purchased. If the homeowner doesn’t pay their property tax off within 1.5 to 3 years (depending on the state law), the deed (ownership) of the house is awarded to you free and clear. We like tax liens because they are government guaranteed and your potential return can range from 8% to 10,000%!

            Tax liens are rated by Standard & Poor’s and can by used by your IRA, SEP or 401K instead of mutual funds.  By moving your retirement account into tax liens, you now are backed by guaranteed government funds rather than being tied to the ups and downs of the stock market.

 

By moving your retirement account into tax liens, you now are backed by guaranteed government funds rather than being tied to the ups and downs of the stock market.

 

            To look at a comparison between several types of investments, let’s take $50,000 and invest it for 36 months.  The results are clear in the investment chart below.

            We at Madison Financial have chosen a lawyer that goes out and researches which tax liens to purchase.  This lawyer averages 28% of liens going to deed.  That average would mean your $50,000 turns into approximately $900,000. 

            This is why tax lien certificates have received such high acclaim by many of the countries’ top investment authors. Now you can understand why working with the government sometimes seems too good to be true.

            Here are action steps that you can take to start utilizing our recommendations.

            1. Move your IRA/SEP into a self directed IRA/SEP.  Then you can purchase tax lien certificates with your retirement plan.  Call us at (843) 216-8805 and we will fax you the required forms.

            2. To get started buying tax liens, simply download the form off of our web site [www.madisonfinancial.com], fill it out and send it to the purchasing agent with your check.  If you need assistance, we can help you fill out the form over the phone.

            3. Look on the web site to see when the deadline is for the next tax lien certificate auction.

            To receive more in depth information regarding tax liens you can buy detailed manuals on how to purchase these at auctions for yourself.  However, we believe that you will make substantially more money by having a qualified purchasing agent buy tax liens for you.  You can obtain free detailed information on our web site:  http://www.madisonfinancial.com