Some classic examples of why you need Comian!
This property came up at an auction last year. The lien being sold was about $2000 but there was already $14,000 of outstanding tax liens on the property. The county didn’t have online records and the buyer of the lien clearly didn’t do their homework. Would you pay $16,000 for that?
Nice house. At first glance one would think it was totally worth the $3,000 lien that sold offering the investor a potential of 16% per annum, however after proper research was accomplished, we found the owners to be in bankruptcy! Not such a good buy afterall. Bankruptcy can tie up a property for years and there’s always a chance the tax debt is discharged by the courts and you won’t be paid!
This land was listed as agricultural and had a lien of a few hundred dollars, after environmental searches we came to find that not only was the prior use an industrial factory, but a local farmer informed us that the land was under a protection order for the protection of an endangered bird species who continued to nest there. Again, not a risk worth taking!
FAQs:
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A Tax Lien Certificate is a first priority lien on delinquent property that yields the holder of the certificate high interest rates. The property owner must pay back the original sum of taxes and other charges, plus interest accrued from the time the Tax Lien Certificate was issued. If the property owner fails to pay within the redemption period, the owner of the Tax Lien Certificate may be awarded an tax deed for that property.
A county tax lien is a first priority lien. This means Tax Liens carry a priority over all other liens secured by the property including the first mortgage. Some exceptions apply to federal and state income tax liens, but because CIG searches for these when performing due diligence, this risk is reduced greatly.
If anything the turmoil benefits us in our tax lien investing. It brings us a greater selection of properties, the liens have a greater underlying property value for the same amount of principal than in years past, and we predict a greater number of liens will convert to our ownership of real property.
The minimum investment is 25,000 $USD. The next fund closes April 30, 2012. Only 35 non-accredited investors may be accepted and the fund offering is limited to 2,500,000 $USD. Please do not delay in subscribing. In past offerings we have closed and investors have been turned away.
We believe it’s the fairest way to run our funds for our investors. Any investment in liens that converts to real property of a Comian Fund is securely divided by investors in relative percentage to their ownership. This assures each investor their rights to a percentage of profit from sale of any real property will not be diluted by a later investor.
Tax Lien Certificates give us first lien position; this means we get paid before anyone else in line, no matter when the lien was recorded. If forced to sale, or we apply for deeds the mortgage and other liens are wiped out, so if they don’t pay our interest and penalties to protect their interest, we may gain ownership of the property “free and clear”.
Comian Funds offer to investors Units for purchase in the various LLCs (Similar to purchasing shares of a corporation), which creates a pool of capital. This pool of capital finances purchases of tax lien certificates which in turn secure our investors first lien position on a variety of end-use properties through out the United States. Since our lien needs to be paid before any other lien, no matter when recorded, we are at a minimum guaranteed the interest on our principal investment. If the homeowner or another lien holder does not pay off our lien, then the fund takes ownership of the real property, allowing for huge profits to our investors.
We ask that you commit your investment for one year. After that, you may withdraw a portion or all of your investment with a 60-day notice subject to specific conditions and penalties. This is a closed ended fund, and investments should only be made with the long term commitment in mind. We do, however, understand that emergency situations arise in life, and will do our best to accommodate the investor.
We currently manage Self Directed IRA’s, Health Savings Accounts, and Coverdell Education Savings Plans for clients. Comian Investment Group is registered with a number of nationally known IRA custodians with Self-Directed IRA and other tax advantaged programs. If your current custodian does not have a Self Directed IRA program, give us a call. We'll direct you to the custodian of your choice who will handle the paperwork for you.
Obviously, there are risks in any investment but tax liens among the safest, in that the lien on the property is a first priority lien, the tax value is a small percentage of what the property is worth, and when proper due diligence is performed the risk is very minimal. The single most important factor limiting risk is proper due diligence and use of our LienTrax software allows CIG to mitigate the many pitfalls of tax lien investing. We search for environmental issues, prior uses, mortgage LTV’s, assessments, bankruptcy filings, and other filings that could affect the value of the underlying real property and in turn our security position.
We understand that when it comes to their hard-earned money, investors need to know they can communicate directly with top management. Fund investors have the cell phone numbers of CIG principals if direct communication is desired. After the fund launch updates will be sent to investors as we get the fund invested and at a minimum investors will receive statements on a quarterly basis. Any reasonable interim requests are happily handled on a case by case basis, as needed.
Plain and simple, the banks and major investment firms probably didn’t want you to know. Tax lien sales date back over a hundred years and banks and Wall Street firms have owned a percentage of their portfolio in them that long! Why would they tell you when they can get by with paying you 3% and earn 16%?
Individuals may invest in tax liens themselves, but it is a very time consuming process that is inundated with pit-falls. Our legal knowledge and experience in tax lien investing limits the possibility for buying a bad lien greatly. By investing the in the fund, you share in a greater number of opportunities all over the US and get to take advantage of liens purchased only after analysis by LienTrax, our proprietary management software program. Use of this software ensures we get the best value in liens and that proper due diligence is performed. The bottom line is, unless you have several hours every week to do the proper research, accounting, attend auctions, file necessary paperwork, process and repurchase incoming redemptions, oversee foreclosures, renovations and eventual sale of properties the management fee is a small price to pay for the upside of our experience and great history of performance.
Even industry professionals selling their own “how to” courses on tax lien investing and tax lien software vendors have chosen Comian to manage their personal and Self-Directed IRA funds!
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