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I would say that all three answers you have already received cover most of the risks pretty aptly. The biggest risk is the one that Catherine notes. 99% of all Tax Liens are redeemed, so the likihoood of you actually getting a property is pretty small. And a lot of times once someone realizes that Uncle Sam isn't going to support them anymore they wise up and take care of their problem. So your biggest problem will be keeping yourself fully invested in these instruments.

Here are some internet sites for additional information. Depending on your current work situation it might be easier for you to hire this out and just accept a little smaller return for them to run the investment for you.

http://www.tax-foreclosure.com/
http://www.ucap.com/
http://www.investing-tools.com/links/tax-lieninvesting.html
http://www.foreclosures-auctions.com/tax_lien_certificates.htm

And I asked Jeeves and got all this stuff back.
http://www.ask.com/main/askjeeves.asp?ask=tax+lien+certificates

Fool on!!
Matt
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