There are 23 states that offer tax lien certificates in some form on their housing, and Arizona is one of the more lucrative places for investing in this manner. Due to the high interest rates and the beautiful rolling canyons, Arizona is one of the fastest growing states in terms of population, and with this comes many investment opportunities for the savvy. Although it is best to review the reliability of all information before proceeding, this state offers excellent investment chances for the beginner.

Arizona Tax Lien Law at a Glance

There are many reasons why Arizona is one of the states most invested in throughout the country (Maricopa County, for example, is believed to have the most tax lien certificates issued anywhere in the US). The laws are standardized in all 16 counties in Arizona, making it easier to understand what the investment is at a glance. The interest rate is 16 percent on tax lien certificates--very high by a nationwide comparison.

The redemption rate in Arizona is three years, meaning that the property owner must default on his or her taxes for that time before the certificate holder can apply for an absolute deed. Although not a good state for turning over investments quickly, the Grand Canyon state offers some of the best overall interest rates. Furthermore, it has one of the most friendly listing systems available, even offering some information online.

Whether investing in Arizona tax lien certificates is right for you will depend--but there are so many opportunities that one can spend an entire lifetime in one niche of this system. If this state seems right for you, then so be it. Overall, putting money into this system is a safe and government-backed way to get a return.