We’ve answered some of the most asked questions about property tax liens and our services below, but if you have a question you can’t find the answer to, feel free to contact us
HOW CAN WE HELP YOU?
Hey, you caught my interest. Tell me more about tax liens?
As you may already know, tax liens are a unique kind of instrument used by local governments (counties/ municipalities) as a method to recover unpaid property tax debt. Municipality allows investors to provide a (what can be called) “secured loan” to the property owner. Such a “secured loan” more often than not would have a very attractive interest.
There is quite a lot of information that we can offer about tax liens. We would like to set up a call between you and our representative and they will be glad to tell you more, as well as discuss services we provide for the tax lien industry.
What interest rate paid on tax liens?
A single tax lien typical average is 5-8% per annum, that after some time and under certain conditions increases to double digits. A decent size portfolio can get an average of 15% pa. Tax liens are not standardized – each state or municipality has its own rules and terms.
Are tax liens secured?
Tax liens are secured by the property, with tax lien investors having priority in front of other lenders to get paid if the property is foreclosed on. In some rare cases, the tax lien investor ends up taking full possession of property title, which could render a decent real estate for literally pennies on the dollar.
What do you do?
UE provides a -market specific solution that automates the buying, selling, and managing a portfolio of tax liens. Accessing the tax lien market and following different processes with each state/ county/ municipality, and many others involved, has been a challenge for many prospective tax lien investors. Our service is created to solve this and provide a simple one-stop access point.
We would like to set up a call between you and our representative and they will be glad to tell you more and discuss in detail the services we provide for the tax lien industry.
How do I become a customer?
Simply just need to complete the contact form with your details [include link]. We will ask some questions like, are you an entity or individual, are you a qualified Accredited Investor, and what amount do you have in mind to invest in tax liens.
Our representative will contact you over the phone or email and will assist you through our onboarding process.
What documentation do I need to provide?
We will ask for W9 (or W8 for foreign customers) information and will conduct checks on the data provided. We aim to follow the same rules and standards as the municipal government selling tax liens. Our representative will contact you over the phone or via email and will handhold you through the onboarding process.
Can non-US/foreign investors participate?
In most cases yes. Additional steps may be required to onboard (like obtaining US Tax Identification Number). We will help you with all of that. Our representative will contact you over the phone or via email and will walk you through the onboarding process.
Are there risks involved with tax liens?
The typical risks with tax liens are: potential change in property valuation resulting in lower lien-to-value ratio; subsequent liens issued against property increasing foreclosure amount; and property owners seeking bankruptcy protection resulting in foreclosure delay.
There are several risk-mitigating strategies to use and our platform can automate for some of them. We will be glad to guide you through setup and more details when we have a call between you and our representative.
How big is the tax lien market?
The overall size (primary and secondary market) is about $25 billion per year. Total unpaid property tax kept on balance (including amounts that did not become tax liens yet) is about $20 billion per year. New tax liens issued is about $7 billion every year.
How can investors that do not use your platform buy tax liens (i.e. who are your competitors)?
There is no secret that investors can attend in-person auctions or register at a county-specific platform and buy tax liens directly. However, there is no other platform that offers a one-stop-shop and automation that manages the process with multiple locations. And specifically there are no other platforms that enable purchasing tax liens with just one click.
Do I need to register my own company to buy tax liens?
No, tax liens can be held by individuals. Having a company buying and managing tax liens may provide some advantage with taxes and risks related to property ownership. More often than not using a company makes sense when holding large amounts of tax liens or when buying liens for non-US residents.
If you would like to know more, we would like to set up a call between you and our representative and they will be glad to answer any questions Start Today