What Are Florida Tax Liens?

Property taxes are an essential revenue source for Florida's counties. Each year, roughly $1BN in property taxes remain unpaid, money that is needed to provide essential services for Florida's citizens and visitors.  By investing in property tax liens investors provide the counties with the unpaid tax revenue. Here is how it works:

  • When a property owner fails to pay their real estate taxes by April 1st, the county places a tax lien on the property
  • This lien is superior to all other liens (e.g. mortgages), except governmental liens
  • The county then sells this tax lien at the annual public tax sale to investors
  • To remove the lien, the outstanding taxes plus interest must be paid to the investor
  • Otherwise, after two years, the investor has the right to initiate foreclosure and earn an 18% return


WHY INVEST IN A MAGNOLIA TAX LIEN FUND
Security through high collateral coverage with a lien-to-value ratio of approximately 2%
Investment hedge with no correlation to stock market
High single-digit return
High degree of diversification (geography, property classes)
Predictable cash flows


WHO INVESTS?

Typical clients include:

  • High Net Worth Individuals
  • Home Offices
  • Foundations and Endowments
  • Insurance Companies
  • Pension Funds


WHY MAGNOLIA ADVISORS?

Magnolia Advisors has successfully placed and managed more than $500 million in tax liens since 2009.

The company utilizes predictive modeling based on historical data and over 20 variables, risk filters, and GIS-analysis with the goal of minimized risk and optimized redemption patterns. Magnolia Advisors' principals have more than 100 years of combined Florida real estate experience including real estate acquisition, entitlement, development, construction and marketing.




MAGNOLIA ADVISORS