Target 5% to 7% return on tax liens

Secured tax liens are a low-volatility investment designed for wealth preservation.

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AVOID MARKET VOLATILITY

An alternative investment opportunity

Low-interest rates are forcing investors to take on more risk just to generate a respectable return. Tax lien investments, which are secured on the underlying property, have been around for more than 200 years and are uncorrelated to markets. With projected returns up to 7% annually, we’re one of the very few funds that is actively accepting new investors.

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FOR ACCREDITED INVESTORS ONLY

Protect existing wealth

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Protect existing wealth

Tax liens are a safe alternative to bonds, as they are secured by first liens on a large diversified group of properties. Our liens are purchased at a low lien to market value which provides a very strong incentive for the taxpayer to pay and avoid foreclosure.

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Decouple from financial markets

Tax liens are not tied to either the bond or stock markets, making them a less volatile alternative to traditional investments.

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Great risk / reward profile

Tax liens not a new, alternative investment, but one that has existed for over two centuries and still they provide one of the best risk / reward opportunities available.

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Proven management team

We bring a proven management team who have invested in the infrastructure and processes required to invest at scale. We utilise an institutional custodian to hold the physical liens and reduce the risks associated with their physical security.

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What is a Tax Lien?

Learn all about tax liens, the various investment approaches, and why someone might want to invest in a fund versus doing it themselves.

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Tax liens are attractive because your investment is secured by the underlying property.

While the rate of return is modest, if you buy well-underwritten tax liens at a low lien-to-value percentage and manage them well it is difficult to lose the principal on your investment.

Decouple from financial markets

Tax liens are not tied to either the bond or stock markets, making them a less volatile alternative to traditional investments.

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Invest alongside the fund principal

The principal of the fund has a significant portion of his net worth invested. This ensures that there is “skin in the game” and his interests are aligned with yours.

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FAQ

Learn about investing in tax liens

How do I invest in tax liens?

There are two ways to invest in tax liens.

With a DIY approach, you can undertake due diligence of the lien list published by the municipality and then attend the auction (either online or in person) and subsequently manage the ongoing administrative aspects depending on the jurisdiction.

Or, you can invest in a fund that does all the hard work.

Why are tax liens a great investment?

Tax liens are attractive because your investment is secured by the underlying property.  While the rate of return is modest, if you buy well underwritten tax liens at a low lien to value percentage and manage them well it is difficult to lose the principal on your investment.  

Why don’t I just invest directly in tax liens rather than in a fund?

It takes an enormous amount of time to carry out due diligence to research what liens are available for sale, whether you want to bid on particular liens, attend the auction and then manage the ongoing document requirements of the particular municipality. In short it is a high touch, low value asset that is difficult to manage. By having scale, the right infrastructure and a full time team we make all this effort worthwhile.

Why do I need to be an accredited investor?

In order to balance the regulatory burden on small funds with protecting investors interests the SEC requires that only sophisticated investors can invest in some funds. They do this by having the fund ensure that only accredited investors participate.

What is an accredited investor?

To be an accredited investor you must have:

  • A net worth exceeding $1 million individually or combined with a spouse or spousal equivalent (excluding value of primary residence) or;
  • Earned income exceeding $200,000 ($300,000 if combined with a spouse or its equivalent) during each of the last two calendar years. The individual must also demonstrate credibility he or she will at least maintain these income thresholds during the current year

Will I get to acquire property? Do you foreclose on homeowners?

We will have to foreclose on a very small percentage of liens that do not redeem. This is a byproduct of our investment strategy rather than the focus of it.

It is widely misunderstood that tax lien sales cause property owners to lose their homes to investors. The opposite is true; tax sales actually extend the period for which property owners can save their property. Without tax lien sales, local governments would need to charge higher interest rates on delinquent accounts and send them to foreclosure faster. Instead, through tax sales the local governments get the cash they need immediately and there exists a prolonged stay against foreclosure to allow property owners to get caught up.

The reality is very few occupied homes are lost through tax sales. The cost to redeem the tax liens is low relative to the value of most homes, so lenders often redeem the property or home owners sell before all is lost.

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FAQ

More about this fund

What return should I expect?

We are targeting a return of around 5% - 7%.

Are the fund principals invested in the fund?

The principals of the fund have a significant portion of their net worth invested, so that they have “skin in the game” and their interests are aligned with yours.

What's the average investment?

The minimum investment is $50,000 but the average investor will invest around $100,000.

How can I get my money out of the investment?

Redemption requests will be processed at the end of each quarter in accordance with the fund rules. Schedule a call to receive our Private Placement Memorandum which explains the details.

Does an investor have to be based in the United States?

Yes.

How risky is the investment?

Tax lien investing can be as risky or as safe as the investor wants it to be. We invest on the safer side of the spectrum - hence the name Low Volatility Tax Lien Fund. We invest primarily in residential liens with a low lien to value, so as to garner the interest and penalties available. We do not buy late stage liens in order to focus on foreclosures and gaining the underlying property which is at the riskier end of the spectrum.

Will I get to acquire property? Do you foreclose on homeowners?

We will have to foreclose on a very small percentage of liens that do not redeem. This is a byproduct of our investment strategy rather than the focus of it.

It is widely misunderstood that tax lien sales cause property owners to lose their homes to investors. The opposite is true; tax sales actually extend the period for which property owners can save their property. Without tax lien sales, local governments would need to charge higher interest rates on delinquent accounts and send them to foreclosure faster. Instead, through tax sales the local governments get the cash they need immediately and there exists a prolonged stay against foreclosure to allow property owners to get caught up.

The reality is very few occupied homes are lost through tax sales. The cost to redeem the tax liens is low relative to the value of most homes, so lenders often redeem the property or home owners sell before all is lost.

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Find out if investing in Tax Liens is right for you

With volatility in bond and stock markets and the prospect of rising interest rates, investing in tax liens might be right for you. We’ll walk you through the asset class and answer questions about this alternative investment that has been around for over two centuries.

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