In some locales—such as many counties in Illinois and Florida—tax auctions are a little-known but highly lucrative source for real estate investors. Savvy investors can, in fact, buy properties at one-tenth (10%) of their actual value through tax auctions.
There are risks involved; but smart investors are assured of returns on their investment of 15%-25%, depending on the locale. Very few legal investments can beat this guarantee.
In a nutshell, tax auctions allow investors to obtain property by purchasing past due taxes. These past due taxes can eventually result in full ownership of the property. At the very least, investors are normally assured return of their original investment, plus 15%-25% interest.
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