Capitalizing on Tax Liens, A Creative Investment Opportunity

Investing in Denver, Colorado Tax Lien Certificates

The city and county of Denver rely on real estate property taxes to pay for city government services such as police, fire, public schooling and medical services. When taxpayers do not pay their taxes, they become delinquent. Delinquent taxes become a serious problem because there is not enough cash flow for the city and county of Denver to provide their government services to their residents. In order to receive cash, the county will offer investors the opportunity to pay off these taxes and in return receive tax lien certificates which pay a high yield of return on their investment and give the investors an opportunity to purchase Denver real estate for pennies on the dollar.

How Tax Lien Certificates Work?

Tax lien certificates are offered for sale at auction on or before the second Monday of December every year at the Denver County Treasurer’s office.   The bid is for the amount of the back taxes. After the investor pays the back taxes, the county issues the investor a tax lien certificate. When the owner of the property pays off the delinquent taxes, the investor gets back their original investment plus nine percentage points above the discount rate, interest on their investment. The county issues the investor a check.

You always know how much you are going to get back. The property cannot be sold or transferred by the owner until they pay the taxes.  The worst scenario is you end up owning the property if the owner never pays off their back taxes.

The right of redemption for the owner to reclaim their property and pay their taxes is three years from the date of the tax lien certificate sale. If the owner does not reclaim the property, the investor is given a deed assigned at foreclosure by the Denver County Treasurer, and has now acquired the property for a fraction of the market value.

Where to Obtain a County Tax Sale List?

A delinquent property tax list is posted on the Internet website of the Denver County Treasurer’s Office about three to six weeks before the sale. The information included on the list identifies the name of the delinquent property owner, parcel number, legal description and the amount of taxes due.  Sometimes the list contains the assessed value of the property.

Why Tax Lien Certificates Are Good Investments

Here are some reasons why Denver, Colorado tax lien certificates are good investments:

• The investor receives a high rate of return on their investment.
• Tax lien certificates are a secure and safe investment because you are buying them from the government, and you get paid by the government.
• You get to purchase Denver, Colorado real estate for pennies on the dollar.

Investors who are looking for a safe and secure investment with a high yield of return should consider investing in Denver, Colorado tax lien certificates.  There are 64 counties in Colorado, so you have a huge opportunity for investment right in your own backyard. You have nothing to lose, and everything to gain.