Tax lien investing through Fidelity offers lucrative opportunities that many investors overlook. By purchasing the tax liens imposed on property owners who fail to pay taxes, investors can earn interest rates from 10-25% in some states. However, successfully navigating tax lien investing requires in-depth expertise. This article reveals tax lien investing secrets from Fidelity traders on Reddit to master this complex investment strategy.
Understand state tax lien sale processes and risks
Each state conducts tax lien sales differently, with complex rules and procedures. Investors must research state-specific lien sale calendars, bidding methods, redemption periods and deed processes. For instance, some states auction tax liens to the highest bidder who accepts the lowest interest rate, while other states award liens on a rotational basis…
In summary, Fidelity traders on Reddit emphasize comprehensive research into state tax lien sale processes, conservative bidding strategies, high-risk tolerance and long holding periods to succeed in this market. While complex, tax liens can provide stable high-yield returns for seasoned investors.