Tax lien loans are first liens on residential homes with an average loan to value of fifteen percent, so the value of the home is five to six times the size of the loan.
The loans are self-liquidating, paying principal and interest over a term of, usually, five years, so the return is steady unlike tax lien certificates which may redeem at any time.
All the capital contributed by the partners is pooled so that no one has the specific risk of one homeowner not making his payments on his loan.
