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The 16% Solution: How to Get High Interest Rates in a Low Interest World with Tax Lien Certificates
Dealing with unpaid taxes? Looking for investment opportunities?
With home foreclosures at an all-time high and the erratic stock market damaging 401(k) accounts, people are looking for innovative ways to invest their money and improve their financial situation through different investment vehicles.
Moskowitz explains what tax lien certificates are (liens against property for unpaid taxes), why they are safe investments (certain states insure them), and how they fit into an overall financial plan. This new edition includes updates to the laws and procedures of states and counties that offer tax lien certificates.
With home foreclosures at an all-time high and the erratic stock market damaging 401(k) accounts, people are looking for innovative ways to invest their money and improve their financial situation through different investment vehicles.
Moskowitz explains what tax lien certificates are (liens against property for unpaid taxes), why they are safe investments (certain states insure them), and how they fit into an overall financial plan. This new edition includes updates to the laws and procedures of states and counties that offer tax lien certificates.
Unknown Binding
First published May 1, 2009
356 people are currently reading
3244 people want to read
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Displaying 1 - 30 of 37 reviews
February 10, 2017
The original 16% Solution came out in 1994. I just finished the 2009 edition, which has been updated in many ways. The 16% Solution is about investing in tax lien certificates, which is something that I had never heard of before. Basically it involves buying tax liens from county governments, and then rather than the county earning the interest, you now earn the interest. Only 23 states sell their tax liens in this way, but Moskowitz includes all of this information for you.
The major differences between this edition and the first one is the fact that many counties now do their auctions online, or at least have websites that have very detailed information about the procedure. Moskowitz includes web addresses for all of the relevant counties. He also includes advice that is based on the current economic situation, rather than what the economy looked like back in 1994. The world is a different place now.
At first I was wary of tax liens - I felt that it must be in some way bad for the person whose lien is being sold, the person who has been unable to pay their property taxes. I would hate to participate in a system that made it easier for people to lose their homes because I bought the lien on their unpaid property tax. But in many states, it's actually better for the property owner - at the auction, the person who wins the bid is the one who will take the lien at the lowest rate of interest. Granted, some states seem to make it very easy to foreclose on someone, but I was interested in the states that seemed to be the most fair to the property-holder. All-in-all, this book makes tax lien investing sound like a really good deal. I plan on checking it out when I have the extra money ready to invest. And I will have this book read for when I need it.
The major differences between this edition and the first one is the fact that many counties now do their auctions online, or at least have websites that have very detailed information about the procedure. Moskowitz includes web addresses for all of the relevant counties. He also includes advice that is based on the current economic situation, rather than what the economy looked like back in 1994. The world is a different place now.
At first I was wary of tax liens - I felt that it must be in some way bad for the person whose lien is being sold, the person who has been unable to pay their property taxes. I would hate to participate in a system that made it easier for people to lose their homes because I bought the lien on their unpaid property tax. But in many states, it's actually better for the property owner - at the auction, the person who wins the bid is the one who will take the lien at the lowest rate of interest. Granted, some states seem to make it very easy to foreclose on someone, but I was interested in the states that seemed to be the most fair to the property-holder. All-in-all, this book makes tax lien investing sound like a really good deal. I plan on checking it out when I have the extra money ready to invest. And I will have this book read for when I need it.
February 10, 2012
Great book to introduce one to the world of tax lien certificates. The best section of the book is the appendix because it goes into detail of the different state's requirements for tax liens.
August 17, 2022
Incredibly interesting and valuable. Would give 5-stars if half the book wasn't state-specific information. As a Canadian, this doesn't offer much value.
April 2, 2016
Great intro to tax liens. Check to make sure your state does tax lien certificates (many do not) and absolutely fully understand the redemption process before spending any money on this. Many states now offer these sales online, and combined with GIS you can pretty easily pull all of the parcel info to make an investment decision. In my state these start out at 16%, but they bid down to lower amounts at auction so a lot of times a competitive desirable cert may only be purchased for a much lower rate of return.
Want to read
July 30, 2009I am actually reading the 20009 edition of this book. It has just been released in March. It discusses earning a higher interest rate in an extremely low interest rate market.
November 11, 2009
Interesting alternative investment option that I will continue to look into it. So far it seems like there is more to tax lien investing than the author leads to believe. Still worth taking a look.
October 25, 2011
Very interesting, am seriously considering trying this as an investment venue.
May 6, 2013
a teaching book ; not a page-turner. learn what you can and it would be good for a new edition to be updated.
March 15, 2015
Very detailed information on the ins and outs of tax lien investing. The author provides the current laws for many states along with pitfalls to avoid and website links for the individual counties.
October 7, 2018
Retires the trophy. One of the best books ever written
June 1, 2025
The Skinny: A great book with great information but is not very applicable to today's digital times.
The Good: Super easy to understand, clear writing style free from legalese. Makes the case for tax lien cert investing in a solid digestible way. The appendix is really helpful for state by state playbooks.
The Bad: This book is from another era, before the internet dominated and it just isn't relevant anymore. Hedge funds, private equity, and mutual funds discovered this strategy in earnest and the space is now "institutionalized" with more competition, better transparency, and lower returns. Not surprising as getting 18% interest on secured assets is about as good as it gets. Still worth the read though.
The Good: Super easy to understand, clear writing style free from legalese. Makes the case for tax lien cert investing in a solid digestible way. The appendix is really helpful for state by state playbooks.
The Bad: This book is from another era, before the internet dominated and it just isn't relevant anymore. Hedge funds, private equity, and mutual funds discovered this strategy in earnest and the space is now "institutionalized" with more competition, better transparency, and lower returns. Not surprising as getting 18% interest on secured assets is about as good as it gets. Still worth the read though.
July 8, 2020
A good overview of the world of tax lien investing
I really enjoyed this book. I have been looking for new ways to invest my excess income and this book gave me enough information to get started with investing in tax lien certificates. How well this book holds up will be answered in time. But it was very informative and written in simple enough language, as opposed to strictly legal-speak, that I feel confident to start doing my own research and start investing on my own.
I really enjoyed this book. I have been looking for new ways to invest my excess income and this book gave me enough information to get started with investing in tax lien certificates. How well this book holds up will be answered in time. But it was very informative and written in simple enough language, as opposed to strictly legal-speak, that I feel confident to start doing my own research and start investing on my own.
November 7, 2024
Very detailed on a great investment for those that have the spare cash. These property tax liens are more relevant to individuals living in states that allow them to be auctioned. Although online auctioning is a thing, doing an on-site inspection of the property is strongly encouraged. Not a great read, but a good one.
December 29, 2023
Lots of information, might be a bout outdated. Some parts are a bit technical and jargon heavy but also is very good at explaining key points clearly. Has lots of good websites and info compiled in Appendices
October 3, 2017
I learned enough to know tax liens are not for me living in Pittsburgh and making 30% on my other investments with a similar amount of work, but I can see its use for people in other locations with different investments.
February 24, 2018
Really interesting
Explain the idea and the potential. For sure it’s give you enough information to start to look into this kind of investment.
Explain the idea and the potential. For sure it’s give you enough information to start to look into this kind of investment.
August 3, 2019
Easy book to read to decide whether or not this type of investing is worth pursuing further.
July 15, 2021
Very informative, easily written.
Gave me some good ideas as to what to do with tax lien properties.
Gave me some good ideas as to what to do with tax lien properties.
January 1, 2023
Great read to learn about this investment strategy. Concise and to the point
September 20, 2024
This is such an interesting subject... an investment that returns double the market? No way. Yes way, and with proper research, it's safe.
I need to do more research, but the book piqued my interest in investing in these.
Half of the book goes into state-specific laws, which is tough. But the first part is super helpful and practical.
I need to do more research, but the book piqued my interest in investing in these.
Half of the book goes into state-specific laws, which is tough. But the first part is super helpful and practical.
January 21, 2025
Decently written, but don't bother. Making 16% is rare and these deals are few and far between. The book even tells you there are states that do not allow this.
May 13, 2009
A tax lien certificate is a lien against real property for unpaid taxes. Tax lien certificates can be purchased as a personal investment. Moskowitz explains in plain language the operation of tax lien certificates and how they fit into an overall financial plan. He includes appendices on the laws and procedures of states and counties that offer tax lien certificates to private investors. The 16% Solution is for the reader who is looking for non-traditional investment vehicles and who is willing to do some homework. However, the title is misleading: a 16% return is rare and is definitely not the norm.
Read
July 9, 2012An interesting look at a little known revenue stream. Basically this is the definitive guide to making money on Tax Lien Certificates. The rates vary greatly by state, however the rates are much better than those available from other assets. It is also interesting to note that tax liens are more secure than many other investments as they are backed by real property. In the current depressed market this may very well be the best way to make money on real estate. (I have not finished the book yet).
November 1, 2012
It was a surprisingly fast read. In fact, I read the entire thing while handing out candy to trick or treaters. A big chunk of it is Appendices, which focus on the 'prime' states that offer 16% interest. That's all fine, but since I'm not planning on investing in those states, didn't really apply to me. I wish the book had more specific information about my state of interest, but it was a great overview of the process in general.
March 15, 2020
Very interesting book! Before reading this book, I had never even heard of a tax lien certificate. Moving forward, I am motivated to figure them out and add this as an important addition to my fledgling portfolio.
Read
January 30, 2009Good information so far. Easy to read for a detailed subject.
Read
June 8, 2012I liked it. I thought the author wrote it in easy to understand language.
June 5, 2020
View my best reviews and a collection of mental models at jasperburns.blog.
August 27, 2020
dificil de aplicar para un españolito.
October 22, 2020
Good basic overview of tax lien investing but I was hoping for more specifics on auction strategy.
Displaying 1 - 30 of 37 reviews