R.E.A.P.'s clients are investing with various county governments with the protections afforded under that state's laws and regulations - R.E.A.P. does not offer the investment.

2. What are the two common outcomes that can occur?

Each time one of our clients invest with specific county governments, they are expecting their money to realize one if the two common following outcomes:

> Outcome #1 - State-backed interest rates range up to 20%
When the property owner pays their property tax, you collect the paid tax plus whatever penalty interest has accrued in that time. The interest rates range depending on the state law in which the lien is purchased.

> Outcome #2 - Acquiring a property for only a fraction of its fair market value
If the homeowner doesn't pay their property tax off within 1 to 4 years (depending on state law), the tax lien holder is eligible to acquire the deed (ownership) of the property. When this happens, you are acquiring a property for only a fraction of it's fair market value and your potential return can range all the way up to several hundred percent.

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3. What is a tax lien certificate?
In simple terms, if a United States homeowner doesn't pay their property tax on time, the county will auction off their tax bill. R.E.A.P. will buy these auctioned taxes (tax lien certificates) for you.

For example, a tax lien bought at 10%APR for $15,000 on a property worth no less than $120,000 is excellent.

Tax Lien Certificates - TLC's can offer the ultimate in safety through collateralized loans secured as legal liens over asset-based property, good returns on interest earned, great returns with acquired properties.

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4. What are the risks and how are these "liability-liens" avoided?

Bankruptcy, litigation and tax lien certificates being declared invalid due to procedural errors are all factors that may decrease the total return on investment in a tax lien portfolio. These potential negative outcomes typically produce a voided lien where the investor receives a refund of the principle without interest.

R.E.A.P.'s research systems review all state laws and each individual property to assure the best return on investment possible.

The true value of the individual tax lien is dictated by two things:

A tax lien bought at 10%APR for $10,000 on a property worth less than $10,000 is a liability without the collateral of valuable property attached to that tax lien certificate. This would be a foolish purchase with very pessimistic projections for positive return.

Without the proper due diligence, portfolios can be significantly damaged due to these liability liens.

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5. What are the goals for each client account?

The ultimate goal is to acquire as much property as possible for each client.

Through the tax lien process, any lien that is not redeemed or paid off to the client, will be awarded as a property. Obviously, if you can acquire a property for a fraction of the fair market value and sell that property on the open real estate market, you would stand to make a tremendous profit.

The secondary goal is to secure healthy interest returns on the many liens that do get redeemed.

With these two goals in mind, it is reasonable for each of R.E.A.P.'s clients to know:
 

6. How does R.E.A.P. receive compounded interest rates through redeemed liens?

A hypothetical calculation for the purposes of example:

When a $10,000 lien is redeemed or paid off in Alabama at an effective rate of 12%APR in the 6th month, the lien would pay back to the investor the original principle of $10,000 plus 12% APR or $600 for a total redemption of $10,600.

R.E.A.P. would then research for and purchase a lien in another state like South Carolina. A tax lien certificate would now be bought for $10,600 at an effective rate of 12%APR. If this lien were to be redeemed or paid off in the 6th month, the lien would pay back to the investor the original principle of $10,600 plus 12% APR or $636 for a total redemption of $11,236.

When we consider the compounding interest between the two states above, the total return on investment would be 12.36%.

Remember, either one of these liens instead of being redeemed could have matured into a foreclosable property free and clear of any mortgage. Selling a $100,000 property, have acquired is for only $10,000, would yield about $80,000 in net profit after selling costs.

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7. Why don't more people take advantages of the profitable world of tax liens?

The number one reason the average investor doesn't take advantage of tax lien investing is because there are too many inconveniences. In order to successfully secure the right tax liens that give an investor the interest return and properties they would desire, there is far too much research and expense for them to complete, even on a full-time basis. R.E.A.P. relies on years of research for the most profitable counties in the United States and travels to these counties on the investor's behalf.

R.E.A.P. has completely turn-keyed the entire tax lien purchasing and property acquisition process for their clients. A client can now live in New York or Los Angeles and profit from the purchase of a tax lien in Indiana that matures into a property. The investor never has to even leave their living room. R.E.A.P. handles every profitable detail from county research, purchasing profitable liens and brokering the sale of the acquired property.

Additional Benefits:
 

This process is a great benefit for the savvy investor who doesn't like to do all of the arduous work yet still likes to reap the benefits while maintaining control.

Imagine as an investor, never having to leave your own hometown, making attractive returns on your investing dollars and knowing that state statutes in combination with our unique systems assist you in becoming profitable.

8. What is the minimum investment?
$20,000 is typically the minimum size account that we purchase tax liens for. However, in certain case-by-case scenarios we do take on accounts that have less than $20,000 in them. Since it is the ultimate goal at R.E.A.P.  to get each client as many properties as possible, to lead a client to believe that an account with less than 20K would predictably yield properties would be misleading.

Note: Accounts smaller than $20,000 can be accepted on a case-by-case basis where we can agree upon a likely outcome for various principle balances. Feel free to contact us if this is the case.

9. How much do tax liens cost?
The price paid for tax lien certificates can range wildly. Depending on the back due taxes on a property and that property's true market value, liens can cost anywhere between $1,000 and $90,000+.

10. How many liens are redeemed on average?
About 90%-95% of liens purchased come back redeemed with penalty interest. The remaining 5%-10% represent properties where our clients may acquire the property.

11. How long does it take to acquire and sell a property?
We can commonly acquire property in only 1 year in most counties frequented by our company. With a 6-month turnaround in property sale... we're looking at selling the property in only 1.5 years.

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