Hedge Funds Are Taking Over the Local Tax Lien Business

The Tea Party Economist reports:

You used to be able to make at least 18% per year on tax liens. These are debts sold by local communities to raise money on their property tax income. It took a lot of time to invest here, but I know investors who do it. One man I know would not go into any deal that paid less than 18%. He got that in tax lien money. That was his bottom line. No longer. Hedge funds have finally entered the market in a big way. Rates have fallen like a stone. Demand is way up. The hedge funds now control 40% of this market.