TAX LIEN & TAX DEED SECONDARY MARKET
Secondary Investor Requirements
We recommend starting your portfolio with a proper strategy for acquiring tax lien certificates and/or deeds for investing. Until recently, most people were unaware of tax lien investing because very little had been written about it. Banks and hedge funds would liked to have kept this 200-year-old investment model a secret to themselves because this is how they regularly make money.
Institutional investors currently dominate the tax lien investment marketplace using your money to do it. Banks have been so successful in their ventures that tax lien investing has been described as a method of acquiring “free money". By employing the strategies we use, you can maximize your profits even further and get your share of available “free money”.
Investing the right way will ensure that your investment is safeguarded and protected. All you need is the professional knowledge, skill, and opportunity to execute a concrete strategy to acquire the greatest returns. You will discover what proper tax lien investing entails, how it works, and explore how you can finally develop a reliable, protected, and high-producing income for yourself.
How much money do I need to invest in the Secondary Market?
Our premium tax liens are in some of the best real estate markets in the country. And the starting level to create a secondary portfolio usually starts around $5,000. If your capital investment is less than 5K, we would recommend first getting you started in the Primary Market and than move on to bank owned Liens. To assist your Portfolio Advisor in targeting bank portfolios we have create four portfolio levels. There is the Bronze, Silver, Gold and Platinum tax lien portfolio levels.
Bronze Portfolio: $5,000 to $20,000
Silver Portfolio: $20,000 to $50,000
Gold Portfolio: $50,000 to $100,000
Platinum Portfolio: $100,0000+
Secondary Investor Requirements
How Much Can I Expect to Make?
Because we provide the most comprehensive purchase analysis in the country for your investments, you are be able to maximize your profits. We only shop in the states that offer the highest interest rate returns and easiest collection processes. Utilize our professional services to select pre-screened certificates in both the primary and secondary markets for purchase.
Attempting tax lien investing on your own or with limited strategic knowledge and planning can produce unfruitful results, especially when you consider the hours of due diligence and research that must go into selecting and purchasing the right certificates. Bidding competition leads to unsuccessful purchases of the most desirable certificates available. You can be left without a successful bid after hours of research and costly pre-payments to the counties and never earn a penny.
The average annualized returns for a tax lien portfolio from 2012 to 2014 was 4 to 7 percent, and have been declining since according to the NTLA. "A big part of my job is dispelling the myths", says Mr Westover. The returns have been slumping because the state of the industry and its foreseeable future have become very, very competitive. "I believe there are more tax lien investors than tax liens available," Mr. Westover affirms. "This is a good thing for local government, it's competitive, it has been for a few years now because borrowing rates are so low."
Mr. Westover adds, "A few years back, the assessments were much greater and you felt like you were much more protected and then suddenly the decline of 25 or 30 or 40 or 50 percent of its assessed value and suddenly it's a little more risky proposition."
Many pay tens of thousands in expensive seminar training, education materials, and mentorships that teach you how to invest in tax lien certificates, but that does not change the primary marketplace for certificate availability or profitability. Many of the desirable certificates are bid down to low interest rate returns, approaching .25% and even 0%. In states that offer redeemable deeds or tax deeds, the prices are bid up to approach and even exceed fair market value.
Others purchase tax lien certificates or deeds from companies who buy the leftover dregs at huge discounts from banks and hedge funds in the secondary market. Afterwards, many investors are left holding the bag on certificates that do not redeem and are secured by undesirable property with little chance of recouping even the original investment, let alone make a profit.
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