"Overall investing in tax lien certificates is a powerful way
to generate a steady income"
RMPAM Tax Lien Fund
RMP Asset Management, LLC (RMPAM) is an innovative private investment firm focused on delivering superior risk-adjusted returns through strategic investments in alternative assets. The Principals of RMPAM have been investing proprietary capital and managing third party assets, in the alternative asset space since 2001. Through extensive screening and prudent selection, RMP Asset Management’s principals have successfully invested in the Tax Lien Certificate market and have generated solid and consistently above-average returns for investors over the past eight (8) years. RMPAM continuously evaluates tax lien contracts offered by AAA-rated municipalities. Now, in this market, RMPAM leverages its deep relationship base, its network of appraisers and its pricing expertise to move quickly on attractive opportunities.
RMPAM Yield Fund I has been created to offer those investors who seek shorter term investments with above average returns the opportunity to invest in TLC’s as well as other low volatility and high yield, debt and fixed income securities. The Fund aims to achieve superior capital appreciation in a 12 to 24 month time frame and will do so by allocating its assets under management to an assorted base of profitable tax liens and other securities that will serve to diversify your investment portfolio.
Advantages of Investing in Tax Liens:
The tax lien market provides investors with a unique opportunity to acquire high yielding assets that are substantially secured by hard assets. More specifically, the liens that are strategically acquired by RMPAM have interest rates between 12% and 36%, despite being collateralized by homes or buildings valued at up to 30 times the amount invested.
The tax lien market provides investors with a unique opportunity to garner significant returns with very little risk. There are many advantages to the TLC market, but the most pertinent are:
Return Potential - Unlike CDs and bonds, tax lien certificates carry high coupon / interest rates. Depending on the state from which you make your purchase, the interest rate may be as high as 36%.
Safety - One of the most appealing characteristics of CDs and bonds is the essential protection of capital that they provide to investors. Tax liens offer an investor a similar level of security because they are secured with real estate assets that are appraised at up to 30 times the invested amount.
Consistency - Given that the rates are mandated by law, the minimum returns on TLC investments are essentially guaranteed, and research reveals that TLC’s have been consistent though economic cycles for the last 25 years.
Portfolio Diversification - TLC’s diversify traditional investment portfolios comprised of equity and standard fixed income securities. The factors that drive TLC rates are not as tied to the state of the general economy and are a good alternative investment which smoothes portfolio returns.
Please note, the statements above serve as information to those who are interested in learning about investing in Tax Liens. The information provided is limited and relative to RMPAM and The RMP Group’s experience of investing in TLC certificates and is not meant to reflect the nature of all TLC or low risk, high yield securities. For more clarification on RMPAM Fund Management Strategies please contact us.