How to and FAQs
How to buy a tax lien?
After opening an account you can access the information about all tax liens recorded on TaxLienDealer.com. The platform allows you to buy any tax lien offered for sale. Members of Investment Clubs can purchase several units (a portion) instead of the entire tax lien. Simply click "Buy" button shown on a tax lien. In case of an Investment Club, you will need to enter the number of units you wish to buy.
How to list tax lien for sale?
You must have an account with TaxLienDealer.com. When you own a tax lien that is recorded under your account, the platform allows you to list it for sale. Simply click "Sell" button shown on the tax lien and enter a desired price. The tax lien listed for sale will appear in Open Orders. When there is a buyer willing to pay your asking price, the platform will record a purchase. In case of an Investment Club, you can list several units (a portion) instead of the entire tax lien for sale. You can also cancel an open order with tax lien listed for sale at any time.
What if I have a tax lien that I bought elsewhere?
You can record your tax lien on your account so that you can manage it (for instance, list it for sale using the platform). Please contact us and provide tax lien principal, year of issue, interest rate, description and address (and value, if known) of the property backing tax lien. If you are adding a tax lien under your Investment Club, we will provide you with instructions for the certificate ownership transfer (if required).
Is tax lien ownership recorded under my name?
Yes. After you purchase a tax lien, we will provide instructions for you to follow and arrange with the seller to complete transfer of tax lien certificate to your name. In case if you purchased only several units under the Investment Club, the ownership of the actual tax lien certificate is managed in accordance with your Investment Club agreement.
What are Investment Clubs?
Investment Clubs are groups of people who pull money together for the purpose of investing. The platform allows members of Investment Clubs to buy or sell units (portions) of a tax lien, instead of an entire tax lien. This way you can own units in multiple tax liens that are held by an Investment Club. If your Investment Club uses our platform, you will be provided with an option to confirm your club membership when you open an account. Please contact us if you are interested to know how to organize an Investment Club.
What happens if a tax lien results in a right for property ownership?
The procedure of acquiring a property based on tax lien may take as long as 90 days (or longer) after the tax lien end date. Our designated agent will provide funds required to acquire property and cover all expenses associated with subsequent liquidation of that property. After the process is complete, the price of the tax lien under your account will show the amount that property sale delivered minus the expenses (which should be approximately equivalent to the potential return amount calculated by our platform). You will be provided with detailed instructions to follow during every step of the process.
What happens when tax lien is redeemed by the real-estate owner?
When tax lien is being redeemed by the real-estate owner, the price of the tax lien under your account will be set to the principal plus interest. It will not be possible to buy or sell such tax lien after it has been recoded as redeemed. In case if you are holding only portion of tax lien (as part of Investment Club), redemption amount will be credited to your account balance automatically.
Are there any taxes that will be withheld when I am buying or selling tax liens?
Our platform does not withhold any amounts automatically. Generally, any gains from buying and selling tax liens, receiving tax lien redemption or acquiring property via tax lien is considered an ordinary income and a sole responsibility of each individual party to file their taxes accordingly. Investment Clubs follow certain specific rules that may require them to withhold taxes in case of non-US resident members.