Tax Lien Investment Fund
Has anyone heard of/invested in any funds that invest in tax liens. I came across one the other day called Optimum Fund that takes investor money, invests it in tax liens across the US and pays investors a guaranteed 8% return per year. They keep any returns they earn above the 8%. Does anyone know of any similar funds that offer better upside. What is the risk to the "guaranteed" 8% return??
I haven't heard of such a fund. However, the risk is going to be who or what is standing behind that guarantee. How would you have liked to have invested in Enron bonds? If you don't have any security position, the guarantee is as strong as the person offering it. If they don't get the returns on their investments to cover your guarantee, who is going to pay for it? My advise is buyer beware!
I have also heard and read about the Optimum Fund. I receive a periodic Newsletter from them. Sign up is easy via there web site.
I have NOT sent them money nor have I found any reliable source that would make me feel more comfortable sending them money. They also do work with E-Bay as an FYI.
If you find any reliable info and or use there service please let me know.
I am thinking about going with them or one of the other companies like The Lennox Group.
Good Luck.
Optimum is a very reputable company and you will get your fixed 8% returns per year with them. Unlike companies like The Lennox Group, who will send you the actual lien certificate, the Optimum fund pools their clients' money and invests in tax liens while guaranteeing you a fixed yearly return of 8%. Optimum is the owner of the actual certificate. This is all some want and they don't care about getting property (property would go to Optimum fund, not the individual investors).
There is also Orion and many others. For more information on these funds call the National Tax Lien Associaton or visit their website at www.ntlainfo.org.
Note: There have been some companies out there stated that their investor's money would go to buy tax liens but the money was the squandered by the principals, thus investors lost their money or at least half of it. Be careful when selecting a fund and always make sure you do your due diligence on them. Being an NTLA member in good standing might be a good sign.