Lenders for tax lien investing

Investor · AL · Member since 2018 · 26 posts · 9 votes

I'm trying to find lenders that specialize or are comfortable with tax lien investments.

I currently have 15 rentals homes that I acquired via tax liens. My current lender pays more attention to the traditional lending than the cash flow I'm generating. I've been able to finance a couple of the homes that I've had for a while and obtained a quiet title, and I have a credit line based solely on my personal income and assets. However, I assume there are some lenders out there that understand tax liens.

I assume there are 2-3 lenders going to the NTLA conference in April, but that's a big trip for me just to meet a couple of lenders.

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Edward Barton

Accountant · Anacortes WA · Member since 2020 · 10 posts · 8 votes

Firstrust Bank

Conshohocken
Pennsylvania
19428
United States

BankFinancial NA

Burr Ridge
Illinois
60527
United States

Associated Bank

Chicago
Illinois
60661
United States

Capital One, N. A.

New York
New York
10171
United States

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Scott Matthew C.
Real Estate Broker · MI · Member since 2014 · 594 posts · 183 votes
3y
Creative Private Money may be your best bet since no one has replied to your post in about 19 days.
Also, can you clarify what exactly you want from a lender regarding the tax lien properties?
Best of luck!
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Edward Barton
Accountant · Anacortes WA · Member since 2020 · 10 posts · 8 votes
3y
Cap One, Associated, Firstrust and BankFinancial lend in the tax lien/deed space.
2 Reply
Don KonipolBusiness Member
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
3y
Quote from @Edward Barton:

Cap One, Associated, Firstrust and BankFinancial lend in the tax lien/deed space.

Wow. I’m surprised there are lenders willing to lend without a full title policy. Can you provide the full name of these four lenders as multiple different entities popped up in a Google search
Thanks!
Private Mortgage Financing Partners, LLC
Website View Page
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Edward Barton
Accountant · Anacortes WA · Member since 2020 · 10 posts · 8 votes
3y
Firstrust Bank

Conshohocken
Pennsylvania
19428
United States
BankFinancial NA

Burr Ridge
Illinois
60527
United States
Associated Bank

Chicago
Illinois
60661
United States
Capital One, N. A.

New York
New York
10171
United States
3 Reply
Nathan R Andersen
Member since 2022 · 43 posts · 19 votes
3y
@Tyson Begly
Where are you doing tax liens that people end up not paying? My understanding is that most eventually pay when it is their home.
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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
3y
Quote from @Nathan R Andersen:

@Tyson Begly
Where are you doing tax liens that people end up not paying? My understanding is that most eventually pay when it is their home.

I get houses every year from tax lien sales. I should have 3 more deeds show up in the mail box in a few weeks from last year's auction.
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Nathan R Andersen
Member since 2022 · 43 posts · 19 votes
3y
Quote from @John Underwood:

Quote from @Nathan R Andersen:

@Tyson Begly
Where are you doing tax liens that people end up not paying? My understanding is that most eventually pay when it is their home.

I get houses every year from tax lien sales. I should have 3 more deeds show up in the mail box in a few weeks from last year's auction.

Oh you’re talking about tax sales, not purchasing liens with a redemption period then right? Like California does tax sales once the properties are delinquent for 5 years.
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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
3y
Quote from @Nathan R Andersen:

Quote from @John Underwood:

Quote from @Nathan R Andersen:

@Tyson Begly
Where are you doing tax liens that people end up not paying? My understanding is that most eventually pay when it is their home.

I get houses every year from tax lien sales. I should have 3 more deeds show up in the mail box in a few weeks from last year's auction.

Oh you’re talking about tax sales, not purchasing liens with a redemption period then right? Like California does tax sales once the properties are delinquent for 5 years.

I am talking about buying tax liens with a 1 year redemption period.
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Bruce Lynn
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
3y
@Nathan R Andersen In Texas almost no one redeems....we sell deeds....but there is automatically a redemption period in most cases. While the people selling courses will tell you 6month to 2 years, and talk about government guaranteed returns of 25-50%, both are not really realistic for most cases. Most of the time you will need to hold the property at least 2 years before you can resell with title insurance or do more than basic rehab to insure safety or preservation of the property, and almost no one redeems, so rare you get that 25% or 50% in year two.
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Tyson Begly
OP
Investor · AL · Member since 2018 · 26 posts · 9 votes
3y
Quote from @Scott Matthew C.:

Creative Private Money may be your best bet since no one has replied to your post in about 19 days.
Also, can you clarify what exactly you want from a lender regarding the tax lien properties?
Best of luck!

Hi Scott, thanks for getting the ball rolling on my post. I was beginning to think it wouldn't get any responses.

So far, I've been using my personal money and a credit line based on my personal assets, which isn't very creative. When I talk to potential private lenders, they are more interested in being partners, which is not what I want.

From the lender, ideally I'm looking for a larger credit line. My current credit line is just based on my personal assets rather than the cash flow from the business. If a lender would consider the cash flow from the business, I think a larger credit line could be justified.
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