Although this state offers riskier opportunities than some others, colorful Colorado nonetheless provides ample opportunities for investment. With its beautiful and spectacular Rocky Mountain peaks and world renowned ski resorts, many people are willing to take a chance here, just based on the possibility of an incredible return. Beware, however, as a lack of knowledge about the property involved can result in a bust on a worthless plots of land.

Tax Lien Certificates in Colorado

In Colorado, unlike Arizona, every county differs somewhat on their percentage rates for interest, and some of the more popular counties (Eagle, El Paso, Jefferson, and Clear Creek) are heavily bid on in auctions. Because of the beautiful scenery and the high prices of single family homes there, everyone is hoping to strike it rich on a delinquent homeowner who is unable to pay.

Colorado's interest rate is 12 percent, plus the federal discount rate of interest, which is lower than some other states offering this feature. Furthermore, because there is no set statewide amount, it is possible for investors to get turned around and owe more than the amount of the residence. Finally, the turnover rate is three years, and Colorado offers no tax deed sales, which means you can never return on your investment in this way.

Overall, Colorado is a fair state for investing in tax lien certificates, but unless you live there or have a familiarity with the laws and geography, there are likely better places to invest in. If one becomes an expert at the system, however, the chance remains for very high yields. Would anyone like a ski chalet?