Turn Key Tax Lien/Deed Services

13 Replies

I'm curious to know if anyone knows of any national and / or local tax lien services that offer a turn key sales solution for those wishing to invest liquid cash or self directed IRA funds into tax liens / deeds. Anyone know of any good ones? I can't seem to find anything reputable thru Google searches.

Would a real estate attorney be the best choice for this?

Quest IRA offers a self direct IRA that allows you to invest in Tax Deedes.

There are several Private Placement Funds that nvest in tax liens. You can use SD IRA or cash to invest in them. They are usually restricted to accredited investors and typically have minimum investment amounts of at least $50K.

Originally posted by @Dave Felts :

I'm curious to know if anyone knows of any national and / or local tax lien services that offer a turn key sales solution for those wishing to invest liquid cash or self directed IRA funds into tax liens / deeds. Anyone know of any good ones? I can't seem to find anything reputable thru Google searches.

Would a real estate attorney be the best choice for this?

 Hey Dave,

I'm not a RE expert like you might expect to find on a BP forum, I work in the SD IRA world. I can tell you from experience of our clients most of the national tax lien/deed services are programs who want to educate you and get you involved in a program that they offer, other than that it seems to be a crap shoot. Some of them look legitimate and aren't some look like they are clearly a scam and are legitimate. The best thing to do is network with some local professionals in your are who are doing the same kind of investing and see if they have any suggestions, or in other words, good job posting on BP hopefully you get some responses that are more helpful than this one.

Adam

@Adam Hershman   is dead on. There are legitimate funds and there are those that border on scams. 

I can tell  you that  sometimes the big money is NOT the smart money. I see some of the big funds making stupid bids. I know they are taking big risks they do not understand, or even do not care, as they are investing other people's money.

I have seen projections and forecasts of profits that don't seem credible. Despite the claims Tax sale investing does have risk.

Medium crab1 copyNed Carey, Crab Properties LLC | http://baltimorerealestateinvestingblog.com/

No doubt that it has risk, but it's an easier way to get into the business rather than spending thousands of dollars buying your first properties right - especially for those with low cash? Just to be clear as well, I already have a self-directed IRA so I don't need a custodian. My custodian just mentioned that there are turn key services out there to help you find, purchase, and manage the tax lien thru its life cycle to completion whether it's the redemption process, or foreclosing on the home. They couldn't tell me what companies other clients have used though for legal reasons (they don't offer advice).

You guys are mentioning funds - not sure what that means in this context. Is there any service you can think of that helps you track down the county listings, purchase them, and manage that purchase with a SD-IRA custodian? There has to be some legitimate companies out there that aren't scams.

Also, you don't have to be an accredited investor to go out and simply buy a tax lien at the county courthouse do you?  I understand the SEC has some accreditation rules for REIT's and such, but that's not the direction I'm heading in.

Originally posted by @Dave Felts :

No doubt that it has risk, but it's an easier way to get into the business rather than spending thousands of dollars buying your first properties right - especially for those with low cash? Just to be clear as well, I already have a self-directed IRA so I don't need a custodian. My custodian just mentioned that there are turn key services out there to help you find, purchase, and manage the tax lien thru its life cycle to completion whether it's the redemption process, or foreclosing on the home. They couldn't tell me what companies other clients have used though for legal reasons (they don't offer advice).

You guys are mentioning funds - not sure what that means in this context. Is there any service you can think of that helps you track down the county listings, purchase them, and manage that purchase with a SD-IRA custodian? There has to be some legitimate companies out there that aren't scams.

Originally posted by Dave Felts:

Also, you don't have to be an accredited investor to go out and simply buy a tax lien at the county courthouse do you? I understand the SEC has some accreditation rules for REIT's and such, but that's not the direction I'm heading in.

Hey Dave,

Like I said, not an RE expert so I'm sure someone can chime in on the aspect of buying liens/deeds vs real property. I would try to press your custodian on who they know that offer these services, we use the same rule that's common with attorneys we can't make recommendations but we do have a list of companies that our clients have worked with before, see if that gets you anything.

Like I said from my experience most of these national services are looking at getting you to put money up for education or information etc. You might try looking for companies that are more local to your target market or even property management companies in your target areas that also help put investors and properties together and see if they have any experience in liens/deeds.

Adam

By funds I mean private placement funds that pool investors cash and buy tax liens. They buy thousands of liens all over the country and your risk is much lower because of the diversification. These funds are only allowed to take accredited investors and usually have relatively high minimum investments. You can of course go and buy your own tax liens without being accredited but from what I understand thats really difficult unless you really know what you are bidding on, the rules of each county etc etc. As a passive investor, I like funds a lot better. You may give up some return in costs but you reduce your risk a lot and your effort to zero. Buy them through an SD IRA and all the interest is tax deferred (or tax free if you have a Roth).

@Dave F.  I would happily supply names if I had them. Mooring Asset Group is one I know of from years past. If you look at the results from some recent auctions that should give you some leads of names. You may be able to find some local investors to work with that way. 

I have partnered with people locally just through networking. It has worked well for both me and the money person. So don't discount that as a possibility.

No you certainly do not need to be "Accredited" to buy liens yourself. However some funds may be set up that you need to be in order to invest.

I would like to write a book on investing in tax liens. I guess I should add something about finding and doing due diligence on companies to invest with or be a facilitator of your purchases.

Medium crab1 copyNed Carey, Crab Properties LLC | http://baltimorerealestateinvestingblog.com/

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You may want to contact/join the NTLA (National Tax Lien Association). They are a national organization that is very active in the tax lien field. They provide seminars, monitor legislation and specific court cases, etc. My law partner speaks at the seminars and has made many great contacts in the field. 

In my opinion, MTAG Services is the best in the industry for what you're looking for, Dave. They provide a really nice range of servicing solutions.