Every year counties sell more than 6 billion in new tax liens across the country. Whether it’s a single family home, commercial real estate, or land, every property owner in the United States has to pay property taxes to the county, and the county uses that money to fund services like the police department, fire department, roads, parks, schools, and much more. Property taxes are the county’s primary source of income.
Sometimes property owners fail to pay their property taxes, so the county places a lien on the property, and then sells a tax lien certificate for the same amount that is owed to them by the property owner. That way the county receives the necessary funds it needs to function. The county charges the property owner a penalty for being late. When the property owner finally pays their delinquent property taxes plus the penalty, the county sends that money directly to the tax lien certificate holder. We teach our students how to participate in the Primary Market, which means purchasing tax lien certificates directly from the county through their live auctions.
Banks, large companies, hedge funds, and large institutional investors invest hundreds of millions of dollars every year in tax lien certificates through the Primary Market. They follow the exact model that we teach to our students, except they are investing hundreds of millions every single year.
For the most part, these large investors buy tax lien certificates only for the interest that is earned in the first two years. The majority of their tax liens get paid off during that time period. Most of those institutional investors are not interested in taking ownership of the properties. Can you imagine trying to foreclose and take ownership of thousands of properties every year? It’s just too much for them to handle so they focus on what they know, which is interest earned through tax liens. This is where we come in.
Through our exclusive relationships with these large investors and brokers, we negotiate and purchase the remaining tax lien certificates from them and as the new owner of the certificates, we can continue to hold them and collect interest, receive redemption checks, or even start the foreclosure process to take ownership.
Sometimes property owners fail to pay their property taxes, so the county places a lien on the property, and then sells a tax lien certificate for the same amount that is owed to them by the property owner. That way the county receives the necessary funds it needs to function. The county charges the property owner a penalty for being late. When the property owner finally pays their delinquent property taxes plus the penalty, the county sends that money directly to the tax lien certificate holder. We teach our students how to participate in the Primary Market, which means purchasing tax lien certificates directly from the county through their live auctions.
Banks, large companies, hedge funds, and large institutional investors invest hundreds of millions of dollars every year in tax lien certificates through the Primary Market. They follow the exact model that we teach to our students, except they are investing hundreds of millions every single year.
For the most part, these large investors buy tax lien certificates only for the interest that is earned in the first two years. The majority of their tax liens get paid off during that time period. Most of those institutional investors are not interested in taking ownership of the properties. Can you imagine trying to foreclose and take ownership of thousands of properties every year? It’s just too much for them to handle so they focus on what they know, which is interest earned through tax liens. This is where we come in.
Through our exclusive relationships with these large investors and brokers, we negotiate and purchase the remaining tax lien certificates from them and as the new owner of the certificates, we can continue to hold them and collect interest, receive redemption checks, or even start the foreclosure process to take ownership.