Taxable Solutions, LLC
Platform
Taxable Solutions, LLC
A Real Estate Social Cause Benefit
At the beginning of each fiscal year legislative sessions in counties around the United States convene to submit their annual budget.
These budgetary items that are submitted include funds for Education, Medical, Law Enforcement, and Fire Fighting issues, Libraries, Road Infrastructure and Highway Construction repair, Parks and Recreation, and other Civic causes.
In order to fund these line item issues, the County Treasurer, County Assessor, Mayor and the County Council members, meet to arrive at the total of what is needed to fund the fiscal projects.
These financial needs have derived from people’s property taxes which are due each year and, as in every year, the county receives the monies due for payment to satisfy the proposed agenda. (Property taxes date back to the late 1600’s).
When property taxes are abated or delinquent from being paid, the county attaches a lien on the property and the taxes plus a penalty which is attached, is recorded in the Governments property records and will remain there until the taxes are paid including interest. The owner could lose the property if the lien is not paid within a required time frame.
The penalty for unpaid property taxes is added to the debt and can represent as much as 8% to 50% each year in addition to the amount of the lien.
First, you must realize that a tax lien certificate is first position on real estate property due to delinquent property taxes. The county government can conduct a sale offering a tax lien certificate when property taxes are delinquent one year. Investors can acquire tax lien certificates ranging in interest from 8% to 25% per year depending on the state and county your acquisition resides. Most of the counties pay 16% to 18% interest per year. Your attendance is not required to acquire profitable tax liens. When you acquire a tax lien certificate by law, you are now the first position lien holder of record. In essence, you paid the delinquent tax bill, and in return you received a tax lien certificate on the property, and in fact replace the counties position and retain their rights. When the delinquent property taxes are paid you receive all of your original investment back plus the secured High interest rate of 16% or 18% interest per year. The interest rate you earn is mandated and guaranteed by state law. Each state has a redemption period, or grace period in which probably taxes must be paid. Redemption periods range from six months on the low side to four years on the high side depending on the county. If the delinquent property taxes are not paid within the Redemption period, the property will be taken through property tax foreclosure. By law, once the process is complete all liens junior to the property tax lien are extinguished.
Property tax law clearly states: “tax foreclosure will result in loss of ownership of the property and all rights of all interested parties.” Code 3205 (B). When informed investors conduct proper due diligence and acquire tax lien certificates on the right types of properties, there are only two possible outcomes
1. Property owner redeems, and you receive 16% to 25% interest, or …
2. Property owner does not redeem and you receive the deed to the property with no mortgage.
When a property tax is not paid to the county, the line item needs cannot be met and suffer cut backs to their budgetary agenda. You invest in tax lien certificates because it is secured by real property and has been appraised by a government agency usually 10 times to 100 times the amount of the lien.
This is when a tax lien certificate is sold to an investor for the amount owed to the county including a penalty interest entitlement. Government issued tax liens sold to an investor is 100% guaranteed and is a senior debt even before a first mortgage. The interest can be as high as 18%.
Imagine, if property taxes are not paid, what will occur to public services. As an example: For the school district it means larger class sizes for the school year and imagine what that would mean to the motto “leave no child behind” or “ just say no to drugs.” Teachers can only educate properly with normal classroom attendances and not overcrowding and all ills that overcrowding brings. Every child deserves the best education that is possible for a successful future that he or she will bring into the world.
Local school districts can provide a reliable revenue stream only when the need, and the help, from tax lien certificates support the cause. The lack of qualified teachers is not going away. It is a deep persistent problem. Nevada alone needs 3000 new teachers a year, yet only about 600 are produced in state. Finding 2400 more every year is not easy.
Another example of a break down in public services is our Police Enforcement and Fire Fighting needs. Police departments across the country are seeing large numbers of officers retiring or quitting, leaving large gaps in our communities. Enlisting, training, equipping new recruits for proper assault and defense and contingent with a thorough knowledge of the law in everyday circumstances, is another large County monetary requisite each and every year. Our fire departments are subjected to a lot of what the law enforcement training is about and safeguard techniques as well as arson identification, EMT training and first aid. When county budgetary funds aren’t fulfilled, residents of the community should expect longer response times for 911 calls. Matters addressing the needs for benefits, holiday wage increases, lower Health insurance premiums, are but a few.
A reduction in parks and recreations, libraries, planning and staffing , and potential slower progress in public works projects, roads, storm drains, and highway pavement, all because the funding isn’t growing at the same rate as the population.
And what about the medical needs? Doctors, new facilities, rooms, additional beds, nursing and practitioners, advanced medical technology, and equipment, and medicines and every other aspect to keep a flourishing and healthy community.
Between September 2013 to September 2015, $870 million dollars went into crowd funding platforms. According to Crowdnetic, a New York data provider, nearly 25% ($208 million dollars) of those funds went into Real Estate Projects. That is more than biotech, Alternative Energy, Tech Wearable’s, Online Gaming and Social Media startups combined. “LA Times” 2/14/16.
Each year $7 billion dollars to $10 billion dollars worth of Tax Lien Certificates are available. It is our nascent platforms desire to lead the nation, in ownership of these secured real estate assets.
Interest rates have been so low for so long that one might wonder why anyone would ever bother to put money in a bank account or invest in a bond. This lengthy period of low interest rates is of course partly attributable to price fixing in Bond markets. The Federal Reserve has kept its key policy variable, the federal funds rate, close to zero for nearly seven years. This has stoked our direction to the tax lien certificates market.
One can really see that the mission of our company is acquiring Tax Lien Certificates. By example, we have shown you the benefits of tax lien certificates and why this project can be deemed “A social Cause Benefit Enterprise” which in essence makes a community a more qualitative environment in which to reside.
Being able to extend peoples real estate taxes for a few years could say that this vehicle has philanthropic value for home owners across the nation, until they can get their lives back to normal and without fear of jeopardizing or disrupting their way of life.
It is our goal to acquire tax liens on a larger scale thus assisting more families while they also provide funds for communities to aid in the hiring of more Teachers, Police/Fire Departments, Hospital Facilities, Libraries, and Construction Planning and what this all adds up to is------JOBS. By obtaining tax lien certificates entails much research and we will be scrutinizing thoroughly and when necessary house to house using various companies like Redfin to establish value.
Review of benefits after acquiring TLC’s.
1. Extending the time for families to pay their taxes and save their property and resume life freely without Jeopardy.
2. By investing in TLC’s you see that our local government receives their annual budget to the extent of our participation for our Counties and are Nation in:
A. Schools
B. Police/Fire Departments
C. Medical
D. Libraries
E. Municipal Construction, and more
3. Investor receives highest rate of interest which is 100% guaranteed by local government in the real estate, with first redemption rights.
4. And the creation of Jobs. Additional manpower/ladypower will add to the counties overall tax base and more spendable dollars will circulate in the community for businesses.
5. The property cannot be sold until the taxes lien is paid in full including all interest
6. Government agency appraised properties.
7. Tax Liens are ultra-safe and are not affected by stock market conditions or economic downfalls
8. Our goal of obtaining $3 million dollars will immediately be used to acquire the tax lien assets from county tax collectors and treasures across the country who guarantee our principal and interest, even before a first mortgage on the real estate, and our enterprise receives between 10% to 25%.
9. Should our $3 million dollar campaign slow down, our team leaders will follow up with more communications to the “early bird” investors, offering “word of mouth” pass-along-recruitment bonuses. To those that help in recruiting new investors, teammates will receive a 10% donation certificate to go to a donee of their choice and in their name as the donor.
10. Consider that everyday you read in your paper the shortages existing in teachers, over crowded schools, police vacating law enforcement, nursing needs, etc. and how our mission to receive in bulk is a valued community assistance.
11. Consider and remember that each tax lien we acquire, is an ASSET, and every subsequent acquisition is an ASSET. As we continue to purchase liens in bulk the liabilities remain small and vision the creation of JOBS.
12. Our goal of Secondary Financing through a public offering could conceivably have a 20 to 1, 30 to 1, or 50 to 1 asset to liability ratio and have a considerable impact on the opening price of our shares.
It is the desire of our company to reach out to prospective investors for $3 million dollars for the initial purchases and acquisitions of tax liens.
A proforma using hypothetical projections using $5,000.00 as the constant lien
5 tax lien certificates @ $5,000.00 each = $25,000.00
50 tax lien certificates @ $5,000.00 each = $250,000.00
500 tax lien certificates @ 5,000.00 each = $2,500,000.00
Using 12% (low) as the constant interest rate
$25,000.00 x 12% = $3,000.00
$250,000.00 x 12% = $30,000.00
$2,500,000.00 x 12% = $300,000.00
Flexible financing is our option of choice. It will allow us to immediately Purchase Tax Lien Certificates and show the early bird investor what we bought and moreover the amount of lucrative penalty interest you obtained to further induce our prospective teammates for additional support. Most importantly look at what the Asset to Liability Ratio would look like. It only takes three to five people to oversee our company. That, including office (supplies, travel, phone, wages, and contingencies) will be a minimum of $5,000.00 to a maximum of $7,500.00. That’s our liabilities. But look at our assets. With each tax lien dollar invested, it becomes a “asset on our financial statement.”
Conceivably our first purchase of a lien for $5,000.00 becomes an asset on a financial statement. As the purchases for the month increase, so does the assets while the liabilities are stagnant at $5,000. Suppose 10 liens were purchased, as an example for $5,000 each, the assets would increase to $50,000 while the liabilities are still at $5,000 that’s a 10 to 1 asset to liability ratio and can you imagine 15 or 20 purchases of liens or more per month, at any price, it becomes an asset. What do you think our stock would sell for under this circumstance? What about the real estate local governments guaranteeing the monthly payments of the tax liens and being in first position to receive our money before anyone else. And remember, that the economy and a stock market sell-off does not affect our investment. A win-win-win for all concerned.
The last quarter of 2015, The Los Angeles Times, The Wall Street Journal, and Barron’s all reported on the Securities and Exchange Commission’s new regulations making it easier for startup companies to raise funds from small investors by selling directly to them. Also, February 14th 2016, the Los Angeles Times reported that between 8% to 10% was typical returns that were promised to investors on real estate crowd funding platforms, and that $208 million dollars was the amount of crowd funding in real estate investments from September 2013 through September 2015 that had occurred.
Our plan to fund initially is the kick start approach. Once we arrive at our $3 million dollar goal, and the Securities and Exchange Commission will have all the guidelines going to step 2 funding.
In every crowdfunding investment people have always been given a memento of appreciation. As a member of our team they will be given a 10% discount on funds invested for a charitable donation to their favorite cause in their name. You will, after completing the flexible investment of $1,000.00, be given an entitlement for a $100.00 donation that you may direct to your School of choice, Hospital, Fire/Police Departments, Library, Parks and Recreation, and any other entity you choose. The donation will be made in your name. As an added bonus for our early birds there will be an additional 5% discount on funds invested over a $1,000.00 to a charitable cause of their choice. Each one US dollar invested will represent one share of our company’s stock and there will be $20 million shares of our company corporate stock. Our deadline for the conclusion of our investor / donor certificate entitlement will end February 28, 2016. Why the enterprise will succeed, is the need for it in every community in the United States. Our plan to have Gerry, Bobby, and Frank take different segments of the country and encompass a greater amount of communities that have high interest rate returns. When team leader Frank was President of Pasadena Business District Association in California, he created a charity golf tournament. The proceeds which went to the Salvation Armies drug and alcohol rehabilitation program. That endeavor was the same as the one you’re reading now. It’s for a better quality of life for everyone in our communities and our country. Our lead team is comprised of our team captains Gerald Hinshaw, Bobby Pierce, and Frank Hall. Our bank affiliate will be Wells Fargo and a Securities attorney will be named when the appropriate time arrives. On behalf of our company thank you for your considered participation.
Our Core Values
We care about our Environment, Communities, Family, Team members, Jobs_ _ _ _ _ and our Nation.
Please contact us at bobbycpierce@gmail.com