THE VALUE OF TIME: A SLOW COOKED APPROACH TO INVESTING LINDA PLIAGAS AND HANNAH ASH
For investors, holding a tax lien is a good place to be. “You’re in line even before the mortgage company,”
Sells says. Because taxes are escrowed as a part of most mortgages, clients often find themselves redeemed
by the banks themselves. When owners fall behind on their mortgages, the property taxes may not get paid.
When they assume a property, the banks are responsible for back taxes. Therefore, Sells explains, "the banks
have to redeem us out just like the homeowner would.” He goes on to say, “we have rights to foreclose on the
mortgage companies just as we do the homeowner; it's a pretty safe spot to be in."
Safety. Cutti ng through red tape. Patience.
Sizeable returns. It’s a strategy that works for
Platinum Investment Properties West and
their satisfied roster of clients. Declining
inventory levels are not a problem in this
niche market: in the business since 1996,
they’re busier than ever right now. The
fundamentals, Sells indicates, are strong.
"Our company has doubled in size every
year for the last six years," he says. "This
year we performed higher than we ever have
in past years. There's still plenty of inventory
out there for us, because I think there's a lot
that still hasn't come to market yet.”
Their clients aren’t looking for quick cash: they want high yields - and they’re willing to wait. 40 percent of their
investors are self-directed IRA clients who understand tax liens are not exactly liquid. Investors, like investing
strategy, don’t follow one set of principles that apply across the board. Fullman says, “It is also important that
investors determine their own investment objectives, preferences and tolerances so they can recognize the
investments that are right for them.” For their clients, patience is key to the approach, “we still push on all our clients
that this is a long-term hold; you'll get redemption checks immediately upon investment, but don't expect that you're
going to flip all this stuff out in a year's time and do it again."
There’s a learning curve to deals so intricate - and it’s one reason that so much opportunity within this niche market
still exists. It’s not fast food investing - it’s long term, proven, safe investing for investors who want and understand
the value of patience.
When it comes to tax lien investing, Sells and Fullman know their industry inside and out. “I think we're the best in
the business that offers this type of opportunity now. And the reason we continue to have our success is because