The lowest cost tax lien certificates will likely be on the least valuable real estate
- likely raw land without utility services.
Most tax lien certificates on investable real estate will be auctioned for between
$1,000 and $10,000 depending on the location, acreage, and structure(s) on the property.
Modern portfolio theory demonstrates that optimal diversification is at least 10
to 12 assets. Diversification can be achieved by investing in different states and
different types of real estate (single family residential, commercial, etc).
So, a minimum investment in tax lien certificates would be at least $10,000 to be
Interest earned from tax lien certificates is taxable as income for the investor.
However, you can purchase tax lien certificates so that your earnings can be either
tax-deferred or tax-free using the following:
Traditional IRA/Coverdell/Keogh/SEP accounts
Roth IRA accounts
Self-Directed/Solo 401K accounts
Treeview Capital Management’s Founder and CEO has a significant portion of his family’s
retirement accounts and his children’s education savings accounts invested in tax
Investing with an experienced investment advisor like Treeview Capital Management
LLC will help diversify your investments in tax lien certificates and in your entire
Tax lien certificates can be purchased from twenty dollars (for worthless strips
of land) all the way up to hundreds of thousands of dollars (for huge mansions or
ranches). As with any investment strategy, diversification is important.