Hi there,

Recently attended a seminar where the Guru mentioned that the tuition fees paid will be fully reimbursed (after acquiring 6 tax liens at min $2k in value each), and that they will also provide 100% funding for all the liens purchases, the take up rate amongst the crowd was insane. I am aware there will be a further and more expensive upsell to another workshop during the first class.

But my question is, are there lenders who will be willing to provide funding to investors to buy tax liens? And 100% funding? I believe when the property is flipped or the liens are redeemed, there might be a cut given to the lender but then again, funding for tax lien investors? 

What is the funding rate and how it is structured is the real question. I don't see how you can lien a tax lien. 

I use private investors to fund buying tax liens.

Name the company and get feedback on them

I'm just gonna mention something in case it isn't crystal clear.  

If these people have the money to provide 100% financing for you to buy liens, why are they not just buying the liens themselves?  

I am 1000% sure that these people are not altruists and don't just love you and want you to be wealthy.  There is a reason why they are doing this and I am going to suggest that it is because the real money to be made in this deal is through the financing and not through holding the lien.

This situation smells to me.

if you believe all that they said , give me a call I have some great deals on land I will sell you 

Originally posted by @Linda Weygant :

I'm just gonna mention something in case it isn't crystal clear.  

If these people have the money to provide 100% financing for you to buy liens, why are they not just buying the liens themselves?  

I am 1000% sure that these people are not altruists and don't just love you and want you to be wealthy.  There is a reason why they are doing this and I am going to suggest that it is because the real money to be made in this deal is through the financing and not through holding the lien.

This situation smells to me.

 To wit, the last person that described the guru in-house private lending started by telling me the interest rate was 0%.

I asked about fees, he said "origination" was $500 + 9%.

I asked about balloon, he said full amount due within six months, or a 9% "convenience fee" must be paid again to extend another six months.

That means the actual interest rate, annualized, is 18.XX%... so, for the guru/lender, CoC ROI is at least [ 18% + no tenants + no capex ]. It might me more when/if they take the collateral and liquidate it.

@Abdul Rauf M. This is an obvious scam. One red flag of a scam is; if you can't see how the other side  makes a legitimate profit.  Linda and Chris are right on with their comments. 

It is rare for a traditional lender to lend for tax liens.  There was a bank in Baltimore that did it. It was mentioned in the Baltimore Sun in an article about tax liens the but the lender requested their name wasn't used. They did not want new inexperienced people trying to get on the program. 

Yes sometimes you can find private lenders or partners to fund you.  However you should probably have a track record for 2 reasons.  First most people wont trust you with their money without a track record.  Next you need a track record to know what returns you can expect. If you don't know what you are going to get how do you know what to offer investors? 

Addressing @Roman M. 's point, you could do a UCC filing on the liens as protection for the lender. We have considered that but have never done it ourselves. 

I agree with @John Thedford name the company. If they are legit they will appreciate the mention. If they are not legit everyone deserves to know.

It is fascinating how  people come up with these scams.

I can also offer same service if somebody gives me 5k upfront.( just joking)

Recently I listened a webinar, people were being asked to pay 3k to participate in the system. 

I asked obvious questions and they privately answered ( wasn't satisfying)  but they never showed it on the actually screen to let everybody see.

I don't know how people buy into this stuff.

@Abdul Rauf M. - Go for it ! Perfect way to be the next Guru.

Good Luck

Vivek

Hey guys,
Thanks for all the feedback. As much as I would like to name the Guru, I don’t think I’ll do that here as I did a search and saw the person is also a member here at BP.

In all fairness, I don’t believe him to be a scam. He seems to be legit with the offering as I checked his profile and credentials. Seems to be a very smart way of marketing this program and preying on gullible Non-American students. I am sure these students are going to be in for a rude shock when they discover how tricky investing in liens will be. There were several other speakers and I actually attended it to catch another popular speaker live.

I’ll try get more info for you guys.

@Abdul Rauf M.  if this is not a scam I’m sure the guru would appreciate the shout of a name mention on bp. Maybe he(or she) can provide more clarity to the service they provide.