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You have seen the infomercials (who hasn't), and you have heard all the testimonials about how much you can make - easily - from tax lien certificates, (tax liens) and Tax Sales. What you probably have not heard is the rest of the story.

Tax liens are not the "quick road to wealth" that some unscrupulous gurus would have you believe. Please do not misunderstand - we do not wish to discourage anyone from investing in real estate or tax liens, as long as you are well informed with the entire story. The problem is, these "infomercial gurus" do not provide enough of the truth about tax lien certificates in their long-winded spiels - they tell you only the positive side, because they want your money. And they make it sound like it requires some sort of "special" knowledge that only they can provide. Not true.

For example, when they tell you that you can buy these tax lien certificates at pennies on the dollar, that is true. And when they say you can end up owning real estate for pennies on the dollar using tax liens, that is also true. But it is what they are not telling you that makes all the difference.

They do not tell you that becoming the actual owner of the property only happens once in every 500 or so "tax lien purchases". And they do not tell you that in most states, the true owner has up to 3 years to redeem their property by paying you back at a modest interest rate - and most of them do just that. During that period, you can do nothing with the property - you are nothing more than a lien holder, just like the bank that holds the mortgage. And those gurus do not mention that if the owner continues to refuse to pay his taxes during that 3 year redemption period, either YOU must keep paying them each year, to protect your investment, or the county will sell additional tax lien certificates to other investors. Then, if the property goes into default, you must "fight it out" with those other investors - and all other lien holders - as to who will get the property. And in many states, even if you successfully get that far, you must actually foreclose - go to court and fight for the property - in order to get a clear title.

All this usually takes a fair amount of cash tied up for long periods.

Don't misunderstand - all of those obstacles can easily be avoided, but only one program shows how. All the others leave you in the lurch - and holding onto near-worthless tax liens. Then, if you need their help, they charge thousands of dollars for mentoring. But the mentors of "The Simple Man's Guide to Real Estate" are always free.

Certainly, a few states still have actual tax sales, whereupon you can take possession of the property, sell it or whatever. But even in those cases, you may have to expend a lot of time and cash getting clear title, because the title will be "clouded". And the number of states that use this method are few - and most of them are preparing to start using tax lien certificates, rather than tax sales.

But all is not lost. Tax lien investing - done properly - can be lucrative, and is a useful investing tool when you have the right info. But tax liens are not a "stand-alone" strategy for wealth generation. The wise person will include it only as one tool in their investing arsenal. The wise person will look for a program that teaches all methods and strategies for investing in real estate. You may never use them all, but you will have them in your "toolkit" for when an opportunity arises, and tax liens just aren't providing the income you need.

If you really want to start making money in real estate, great - there is no better way to earn a large income. But you need to be cautious about who you trust for your information. Research. Check with the BBB. And while you are doing that research, check out the best-selling "Simple Man's Guide to Real Estate".