Purchasing liens on property is essential for investors seeking opportunities in real estate. When property owners fail to pay their taxes, local governments can place a lien on the property. By purchasing liens on property, investors gain the right to collect the owed taxes plus interest. This investment strategy can yield significant returns, as the interest rates on tax liens can be quite high, often ranging from 10% to 20%. The process typically involves researching available liens, participating in auctions, and ensuring compliance with local regulations. Investors should carefully assess the properties associated with the liens to minimize risks. If the property owner pays off the debt, the investor receives the interest; if not, they may have the opportunity to acquire the property through foreclosure. Overall, purchasing liens on property can be a profitable venture for those willing to navigate the complexities of the process.