On Jan. 30, Alpine TLI Group, Inc. announced its participation in the Maricopa, Arizona tax sale, a group of properties whose location and valuation exhibit the potential to accrue more than $20 million in investment opportunity.
Alpine, a full-service property management company vested in tax lien and tax deed purchases based on intensive market research which identifies prime real estate areas, typically acquires tax lien property for between 1 and 20 percent of the property’s value. When redeemed by the owner(s), these properties show an APR return of between 4 and 25 percent. When not redeemed, Alpine holds deed to the property free and clear of all encumbrances.
The Maricopa sale, which closes on Friday, Feb. 1, will award successful bidders like Alpine with the appropriate properties. According to M. Taylor Abegg, II, Chief Executive Officer of Alpine TLI Group, Inc., the Maricopa sale is traditionally one of the largest in the nation, with 28,000 properties being offered in 2008. “As a result of Alpine’s proprietary research and due diligence process, we have identified the properties that have the greatest potential to yield the highest leveraged return. We are confident Alpine will be successful in acquiring a large number of liens on such properties.” Abegg stated.
In the U.S. alone, over $19 billion in property tax liens are offered for sale every year. These properties have the potential to generate more than $1 trillion in profits, either through owner redemption via the payment of principal, interest and penalties (which are forwarded to the lien holder through the presiding local agency), or through acquisition, as when the fees remain delinquent for a specified period and the property “goes to deed”, usually for as little as 5 to 10 percent of the property’s actual value.
In the modern economy, some jurisdictions have more than $100 million in uncollected annual property taxes. This can result in significant cash flow problems. Alpine is committed to assisting these local tax jurisdictions by ensuring their operating revenue remains sufficient to prevent insolvency. Alpine is also dedicated to assisting owners who want to redeem their properties by paying past due taxes.
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