Tax Lien Investing

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.