Grow Your Money with US Tax Lien

Apart from growing your money through traditional methods such as stocks, forex, bonds and etc. Buying Tax Liens in US is another low risk method of growing your income. Our aim is impart to you financial knowledge that can be understood easily without needed to decipher profound words and paragraphs. Therefore, we made a few info-graphic to helping explain the definition of Tax Lien much easier.

Tax Liens are issued to a house owner who is unable to pay his or her property tax in US to the city or county. The house owners will not be able to refinance or sell the property until the lien is cleared. This is probably one of the source of revenue for the city or county.


Since the City or County would want this revenue, tax liens will be auctioned off to investors either physically or through an online portal. Investors like us, will then try to bid for it in order to purchase a tax lien. The investor with the lowest bid on the interest rate or the investor with the highest bid on premium will be the winner of the bid.

taxlien2The winner of the bid (the investor) is then require to pay the full amount of the lien immediately to the city or county.


Afterwhich, the house owner must pay back the investor the entire amount of the lien plus interest within a specific timeframe. The time frame could range from 6 to 36months and the interest could range from 5 to 36%. This is usually specified  before and during the bid.

Tax Lien is quite a simple concept but due diligence is always highly encouraged. When it comes to property, it is also about Location, Location, Location. Therefore, this will be the same. Picking a good location will be great especially in the event of a rare scenario. The rare scenario of you becoming the owner of the property due to payment failure by the house owner. You will then be able to sell or rent the house much easier because of it being at a good location.

Various houses will have different tax lien certificate amounts and interest. For example, some pay have a Tax Lien amount of $517USD and you’ll get 18% interest per year. While another could be about $4600USD with 14% interest per year.

Here are some basic things you’ll need in order to start investing in tax lien:
1. US Based Bank Account with ACH Feature
2. SSN or EIN or ITIN (Tax ID Number)
3. US Based Address with Mail Forwarding Service to Singapore

If you’re a Singapore Citizen deciding to start getting into Tax Lien.

Here are 2 options that you can consider for opening an account in the United States:
Option 1 – Fly over to the United States to open one
Option 2 – Open a HSBC Singapore Bank account and then apply to open the bank account in the US after 3 months.

In our opinion, option 2 will be the cheaper alternative because you wouldn’t need to fly over to the US to open the bank account. However, do note that there is an about $300 admin fee charge when you make the application. Of course $300 is still way cheaper than making a trip to the US.

So open your HSBC Singapore bank account and do remember you’ll need to have the initial deposit and maintain your monthly balance to avoid charges. Simply find out more about their Singapore Dollar Savings account here. So after at least 3 months, you can make a call to HSBC International Call Centre @ 1800 216 7450, and they will assist you in an e-application and tell you what documents you need to bring before you proceed down to the branch. Saving you multiple trips to the bank. Unlike the normal call centre servicie, that hotline is only open from 9am to 5pm, Mon to Fri.

Of course, do note that it is always subject to their bank’s approval.

Our Verdict:

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