Colorado Tax Liens - Low Yield but Relatively Safe and Easy to Buy

Looking for an easy way to get into buying tax lien certificates?  Try Colorado.  The auctions are in October, November and December (For a complete listing check out this Colorado Tax Certificate Auction Schedule).

The auction is either a round-robin (good for smaller investors) or an overbid auction.  This overbid does not earn interest and is not returned, so it reduces your yield.  

The max interest rate is 9% above the Federal Reserve Discount Rate so this year you can earn up to 10%.

You can find out more on my complete guide to buying your first Colorado Certificate of Purchase.