What to Consider When Investing in Tax Lien Properties

Posted October 12, 2022 by LewisMcDaniels

Frederick, MD 08/12/2022: Tax lien investing can deliver hefty returns for a small investment. However, without the guidance of tax lien lawyers in Frederick County, many investors walk into an auction unaware of the potential risks.

Maryland hosts several tax lien auctions. Interested investors in Frederick County can view tax lien and tax deed auction schedules at the county’s website. However, these investments come with legal loopholes that can catch investors off guard. LewisMcDaniels, a real estate law firm based in Frederick County, has provided a list of considerations to make before committing to an investment.

Investors must first consider that tax lien investment is a form of “blind investing.” This means that investors may not see their properties until after a tax lien foreclosure is finalized. As a result, an investor may risk acquiring the tax lien to a dilapidated property that does not bring a desirable return on investment.

Another factor to consider is the past owner’s foreclosure right of redemption. The right of redemption refers to the time within which the owner can pay outstanding taxes to the county. A property’s past owner may redeem the property within this time.

Due to the possibility of a lengthy redemption period, an investor may not receive long-term gains from a tax lien investment. If the past owner pays all outstanding taxes, the buyer may not profit from the investment for very long but will earn very promising interest on their lien purchase.

Due to the risks, tax lien investing without guidance is not for novices. This blind investing can lead to a wasted investment without the right information. To mitigate risks and ensure a profitable investment, investors must seek the guidance of tax lien lawyers in Frederick County.

Investors looking for guidance in real estate, tax deeds, and tax liens can reach LewisMcDaniels at 50 Citizens Way, Suite 305, Frederick, MD 21701.

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Issued By LewisMcDaniels
Phone 3018180405
Business Address 50 Citizens Way, Suite 202 Frederick, MD 21701
Country United States
Categories Business , Real Estate
Tags ax lien lawyers in frederick county , real estate law firm based in frederick county
Last Updated October 12, 2022