Large institutions have been taking advantage of tax lien investing for centuries. And although tax lien investing is available to everyone, its perceived difficulty scares off many individual investors.
Tax Lien Code wants to change that.
Tax Lien Code, the global leader in tax lien investing strategies, is on a mission to educate individual investors about how tax liens can help recession-proof their financial portfolios by offering easy-to-implement strategies and support systems.
This new push is a direct response to the post-pandemic economic downturn and the recession that experts say is inevitable. Tax lien investment has historically been well-suited to protect corporations against recession. Individual investors can use the same strategy to protect themselves, too.
“A tax lien is a form of real estate investing but without the hassle of interacting with tenants or buyers,” said Brian Petersen, CEO of Tax Lien Code. “Our purpose is to bring awareness to tax lien investing and what it can provide to the investor.”
Petersen acknowledged that the complicated terminology behind tax lien investing can scare off individual investors; the idea, however, is very simple.
“I can explain tax lien investing in one sentence: When a property doesn’t pay its property taxes, you can buy a certificate of the government’s lien against that property,” he said.
Tax lien certificates are administered by specific counties, and no face-to-face interaction with tenants is ever needed. Most states and counties have their own property tax rates. The rate of return is also fixed by the county and backed by the real estate value of the property under lien.
During normal economic environments, default rates in most counties generally range between 10% and 20%. During a downturn like we’re seeing today, the default rate can increase to more than 30%. Some US counties are already there.
The 2008 market crash and recession led to a 40% spike in the national volume for tax liens, up to $18 billion. Today’s downturn along with uncertainty in the current world market have many anticipating another boom to tax lien volume. Individual investors can jump in if they know how to navigate the system alongside competition from large companies.
“Because these certificates are sold at auction, large players are incentivized to keep individual investors in the dark and lessen competition,” Petersen explained. “I’m here to change that.”
Petersen said it all comes down to clear, simple education that’s available to all investors. Tax Lien Code offers live classes taught by certified instructors. Students learn how to capitalize on tax liens using simple step-by-step strategies.
The goal is to make tax lien investing accessible to all Americans looking to supplement their income, build wealth, plan for retirement, and recession-proof their portfolios.
“We’re here to help people, give them a second chance, and make sure that no one loses money,” said Petersen.