How to Invest in Howard County, Maryland Tax Lien Sales

You can earn a solid 18% return by buying tax liens at Howard County, Maryland’s annual tax auction every May. Investing in tax liens is a smart way to potentially earn high returns. Howard County, Maryland, offers an attractive 18% annual interest rate on tax lien certificates, making it a worthwhile consideration for investors. With a low entry cost, this investment strategy provides an opportunity to acquire properties at a fraction of their market value.

Understanding Tax Lien Certificates

A tax lien certificate represents a lien on the property due to unpaid taxes. When homeowners fail to pay their property taxes, the county places a lien on the property and auctions these liens to investors. If the homeowner redeems the property, they must pay back the lien amount plus the 18% annual interest, offering a lucrative return for the investor.

For example, if you purchase a tax lien for $5,000 and the homeowner redeems it after one year, you would earn $900 in interest. If they redeem after two years, your interest earnings would double to $1,800. If the homeowner does not redeem the lien, you have the right to foreclose on the property after two years.

Steps to Start Tax Lien Investing in Howard County

1. Research and Understand Local Laws

Knowing the legal framework is crucial. Each county has specific regulati

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