This entry treats tax lien investing at capital scale: deploying significant capital systematically across many tax liens, often through funds or organized buying operations, rather than the individual purchasing a handful at local auctions.
Log in to followSizing a first allocation and the reserve line is where my model falls apart. Plan is roughly $4M across three or four states, average certificate around $4,400 face, so call it 9…
Simple model, and I know it's too simple. 200 certificates, average face $2,200, statutory 16%, everything redeems inside 18 months. Spreadsheet says a hair under 16% because I di…
Looking at a diligence packet for a lien vehicle, around 60m deployed across four states. Their weighted average bid rate across the last full vintage is 12.4%. Net to LP on that…
Trying to get $6M into certificates over roughly 18 months across three states. Two problems are eating the model and I can't tell which one is the real one. First, cash drag. The…
I look at lending because I'd rather hold paper than a roof. Someone described a scaled lien operation to me as a bond ladder where the county does the collecting, and that framin…
$250k committed, three year term. Management fee 1.75%, and here's the clause I read and did not think hard enough about: charged on committed capital, not on invested capital. Th…
I'm sizing a first real allocation and the bidding rule is the thing I can't settle. Two coherent ways to run it and they produce different bids on the same certificate. One: pric…
I manage properties, so I come at this from the paperwork end. A couple of the lien funds I've been sent materials on describe themselves as fixed income substitutes, and the pitc…