Could you tell me what services you provide your investors/partners?
How do you determine what property you will bid on?
How successful are you?
What is the truth about tax liens?
Rate of Return

Answer:

After all partners are identified, then an LLC is formed. We research the areas of interest (pull maps, identify subdivisions, assess potential property resale value) prior to a tax sale.

Next comes the bidding process. After the tax liens are acquired in a sale, the partners are notified as to the properties we have acquired tax liens on, the amount of our investment used, and the upcoming tax liability that we will be responsible for.

Next we sort out the liens that can be foreclosed on immediately and begin the foreclosure process. Foreclosure takes approximately 6 months to get into court. There is a lot of research that must be done and notices that must be served that are time sensitive.

After acquiring the Default Judgement in court, it is a matter of filing with the Treasurer's Office to get a new deed, and then with the Recorder's Office showing we have acquired the right to sell the property.

The accounting process is maintained in great detail for each property, so that we know exactly what expenses are in each property. It is exciting to see a return of 1200%-1600% on your money when you sell a property.

Quarterly reports are sent to investors so that they can also see their investments growing, and know the properties that have been acquired. Perhaps an investor wants to build on a property that was purchased in the tax sale. What a savings on building that new dream home!

Partners have 24-hour access to partnership information on the Internet, as well as individual contact as needed for legal notifications and so on.

Answer: Primarily we stay in areas that we am familiar with. While we may not look at each property individually (time does not permit from time of publication to sale date), we do drive out to areas of interest and look at the lay out of the lay, utilities, road conditions, development in the area, available sources for shopping, schools etc. We am looking at where overhead utilities cross a subdivision, indications of underground gas lines, major washes that prevent having buildable sites.

As managing partner, I am part of each partnership and I, also, want to have ownership in land that is profitable and resaleable.

Answer:

Our last partnership was formed two years ago, originally acquiring  183 tax lien certificates and recently another 29 tax lien certificates

After redemptions, the partnership was left with 90 actually going through the foreclosure process.

Currently our investors have made slightly over 100% return on their money. This is a much better return than the 16% they would have made just buying tax liens for the interest return.

Answer: Here is an example from one website:

"The indication was the tax lien was purchased for $3000 at 16% interest. Three months later the owner paid the back taxes of $3000 and 16% penalty of $480.00."

This example of misinformation on the Internet. In reality, with a three-month closure, at 16%, the interest payment (to the lienholder) would come to $120.00. Now, $120.00 is not a bad ROI, but since it was redeemed in 3 months, the return was NOT $480.00.

We are concerned about misinformation like this, and encourage those interested in investing in tax liens to talk to us about any information they receive that rings a warning bell. Tax lien investing can be a good business, and there is no need to exaggerate or misinform.

While the interest rate can be lucrative, we seek foreclose on properties whenever possible, in order to achieve title on them. Achieving outright ownership has the potential for far higher returns.

At any rate, you can be assured that the information you get from us will be true, correct, and complete. We are a true partnership with the goal of creating wealth for all partners. We don't need to exaggerate, and we do not tolerate sloppy accounting.

Answer: No

When properties are picked up through assignments, the assigned interest rate is 16%.

However, during a tax sale, bidders are bidding on the interest rate they will accept in order to get the tax lien certificate. In the event that there are mulitple bidders bidding at 0%, one is randomly selected to receive the bid. This means that the interest rate can vary, depending on the bid process.

Please see the FAQ, "How successful are you," for information about the current rate of return (approaching 400%).