150 Types of Unusual Investments – The List

132. Tax Liens – in some states, when property owners don’t pay property taxes, and investor can step in and pay the taxes in exchange for a tax lien.

In order to redeem the lien, property owners must pay the amount of back taxes plus interest to the investor.

If the property owner fails to redeem after some period of time, the investor can foreclose and take ownership of the property.

It is more than just a numbers game for the investor.  There are different strategies involved when either trying to generate income by having the lien redeemed versus trying to find properties which are less likely to be redeemed.