Last we left off we were talking about the new 95/5 Rule.

So far that rule demonstrated that:

1.    95% of people at retirement age are broke because the majority of information about getting rich is wrong.

2.    95% of people clamoring to invest in Tax Lien Certificates believe they are investing in a get rich method of acquiring real estate.

The next 95/5 principal in Tax Lien Certificate investing goes right through the long accepted principal of supply and demand.  Simply stated:  The more there is of something the less the cost.  While on the other hand the less of a product the more is will cost.

Right 95% of the time, wrong 5% of the time when it comes to Tax Lien Investing.

It’s one of the several reasons Tax Lien Investing is so popular with the largest institutional investors and wealthiest individuals.

The main reason the law of supply and demand is upside down in Tax Lien Certificates is because they’re backed by governments that need the money.  Buying votes and providing vital services is expensive.

State and local governments, in order to get the money they need, offer incentives to sell off the unsold inventory of Tax Lien Certificates.  They keep raising the interest rates to make them more attractive to the institutional or individual investor that’s looking for interest income.

Stay tuned for more insights in Tax Lien Certificate investing that all too few want you to know about.