Forging Ahead: Tax Lien Technology
Tax Lien Investors face increasing competition and shrinking returns. Savvy competitors utilize technology to increase the efficiency of their thousands of transactions, translating to greater margins on every invested dollar. Technologies include software and online systems that reduce errors, reduce data entry, and automate costly back office transactions.
Click here to open the above presentation on profitable technology at the Tax Lien Talk annual conference 2016 held in Nashville, TN.
Forbes Insights Report
The Forbes Insights report dated October 2015 revealed strong consensus from over 400 executive wealth and asset managers:
- 83% agree or strongly agree they face significant competitive pressure
- 49% say they believe their segment is undergoing significant change
- 56% are in hot pursuit of greater operating efficiency and cost reductions
VADAR® clients utilize our industry-leading software and systems to drive down operating costs, boost operating efficiency, and gain greater profits and returns. The VADAR tax lien servicing system LienApp® delivers operating efficiency for tax lien investors. Moreover, it uses automation and algorithms to improve report accuracy, reduce data entry costs, and mitigate risks of data loss or security breach.
Costly Tax Lien Management
“Once you buy your first tax lien, you enter the servicing business.” Tax liens are cumbersome to comply with statutes while administrating paperwork and processing transactions. This costly tax lien servicing is composed of Portfolio Management, Collections and Payments, and Analysis and Reports. Therefore when portfolios grow beyond a 100 or so tax liens manageable by spreadsheets, Investors face 3 tax lien servicing options:
- Outsource Tax Lien Servicing
- Build Servicing Systems
- Buy Servicing Systems
Outsourcing the back office transactions to third parties allows investors to focus on investments rather than operations, and often provide peace of mind, but 3rd party servicing comes at a price. Typically, a $1,000,000 revolving portfolio costs $85,000 annually to outsource servicing.
Investors are tempted to build servicing systems to manage their operations in house. However, they mistakenly believe these systems must be custom designed and built. Consequently, the average business owner spends 180% more than budgeted to be given a design that is a mere 33% of scope … and 200% later than scheduled. (Bloomberg Software Research Group, 2014).
VADAR offers tax lien investors the #1 cloud-based enterprise system LienApp® with profitable technology for managing portfolios in house for the lowest cost and maximum profitability. LienApp benefits from decades of tax lien industry experience and IT development. Standardizing 1 platform across thousands of municipal statutes, LienApp optimizes tax lien servicing without the need to hire experienced IT or tax lien professionals. Consider the many benefits and features LienApp offers at a fraction of the cost to outsource your tax lien servicing:
- 1-Click Reports
- IRR Time Machine™
- Automated Noticing
- Profitable Technology
- Big Data Intelligence for Due Diligence
- 1 Interface for Purchases, Payments, and Collections
To learn more about how LienApp streamlines your servicing costs, contact us for a free consultation and demonstration today.