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URL:  https://boards.fool.com/1-why-on-earth-is-there-so-much-interest-in-23868941.aspx

Subject:  Re: Tax Certificates & Deeds Date:  3/22/2006  11:25 AM
Author:  jrr7 Number:  7792 of 14295


1 - Why on earth is there so much interest in bidding 0.25% on the vast majority of tax certificates? What is the attraction of investing $5.6M at 0.25% per annum on securities with first lien on real estate? There must be some hidden benefit to being a tax certificate holder other than the interest earned on your investment -- what is it?


Because they expect the delinquent taxpayer to default, and then they can seize the property at way below market value.

they are willing to handle the overhead of forming 100+ LLC entities to increase the odds. Why?

Because it's profitable.

With so much interest at the 0.25% rate, why on earth would there be any tax deeds left at the rates above that?

Assessed value is meaningless. The only thing that matters is the difference between (total amount paid) and (market value of the property).

Under what circumstances would the county choose the latter and why?

If the county wants to acquire the specific property in question.
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