OptimisticRealty

Tax Lien Investment Fund

Government-Backed Real Estate Returns: 10-25% Annually

Kresnier | OptimisticRealty.org

Kresnier@OptimisticRealty.org

The Problem

Most investors can't access tax lien opportunities

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• Billions in delinquent property taxes annually

• Individual investors lack deal sourcing capabilities

• No time to manage county auctions

• Insufficient capital to diversify

• Institutions ignore this market (too small, too operational)

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Result: Attractive returns left on the table

The Solution

We source, acquire, and manage tax liens at scale

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✓ Professional deal sourcing & analysis

✓ Attend county auctions on investors' behalf

✓ Handle 100% of operations (bidding, documentation, management)

✓ Diversified portfolio (20-40 liens per fund)

✓ Investors earn passive income backed by real property

How Tax Liens Work

Property Owner → Doesn't Pay Taxes → County Auctions Lien

↓

We Purchase Lien

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Two Outcomes (Both Win):

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OUTCOME 1: OUTCOME 2:

Owner Pays Back Taxes Owner Doesn't Pay

↓ ↓

Collect Principal + Foreclose on Property

10-25% Interest Own $120K Property for $8K

(State-Mandated) (80-90% Discount)

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Key Points:

• First-position lien (ahead of mortgages)

• Government-mandated interest rates

• State law protects lien holders

Market Opportunity

Tax Lien Market:

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• Total delinquent taxes: $X billion annually

• Average lien size: $8,000-$15,000

• Average property value: $80,000-$120,000

• Interest rates: 10-25% (state-mandated)

• Redemption rate: 85-95% (most pay back)

• Foreclosure rate: 5-15% (acquire at discount)

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Target Markets:

• [County 1]: $X million available, 18% rate

• [County 2]: $X million available, 12% rate

• [County 3]: $X million available, 15% rate

Sample Deal Analysis

Real Example: How Tax Liens Generate Returns

Three Ways to Invest in Delinquent Taxes

We deploy capital across all three strategies based on opportunity

TYPE 1: TAX LIENS

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Portfolio Allocation: 60% (Most Common Strategy)

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How It Works:

• You purchase the lien (debt) on the property, NOT the property itself

• The lien represents unpaid property taxes

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Your Position:

• First-position lien ahead of mortgages and other debt

• Government-backed and legally protected

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Returns:

• State-mandated interest rates: 10-25% annually

• No negotiation - rate is set by law

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Timeline:

• 6-24 months for owner to redeem

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Outcome:

• 85-90% chance: Owner pays back taxes + your interest

• 10-15% chance: You foreclose and own the property

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Risk Level: LOW

• Property typically worth 10-20x your investment

• Government backing provides security

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Best For: Steady, predictable returns with minimal risk

Investment Type #2: Tax Deeds

30% of Portfolio - Higher Upside Strategy

HOW IT WORKS:

• You purchase the actual PROPERTY at auction (not just the lien)

• Immediate property ownership upon winning bid at auction

• You own the deed and can take possession immediately

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YOUR POSITION:

• Own the property outright from day one

• Can renovate, sell, or rent the property immediately

• No waiting for redemption period

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RETURNS:

• Acquire property at 50-80% discount to market value

• Flip for quick profit (200-300% returns typical)

• OR convert to rental for ongoing cash flow

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TIMELINE:

• 3-6 months to acquire at auction

• 3-12 months to renovate and exit (if flipping)

• OR rent immediately for passive income

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OUTCOMES:

• FLIP: Renovate and sell for substantial profit

• HOLD: Convert to rental property for cash flow

• PARTNER: Source to investor for finder's fee

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RISK LEVEL: MEDIUM

• More capital required upfront than tax liens

• Active property management needed

• Renovation costs must be estimated and managed

• Market conditions affect sale price

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BEST FOR:

• Investors seeking larger profits

• Building rental income portfolio

• Those comfortable with property management

• Creating long-term wealth through real estate

Investment Type #3: Redeemable Deeds

10% of Portfolio - Hybrid Strategy (Best of Both Worlds)

HOW IT WORKS:

• You own the deed BUT owner has redemption rights (typically 6-12 months)

• You get the best of both worlds: High interest OR property ownership

• During redemption period, you can collect rent from the property

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YOUR POSITION:

• You own the property with redemption period attached

• Can collect rent during redemption period

• If owner redeems, you collect high penalty interest

• If owner doesn't redeem, you keep the property

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RETURNS:

• EITHER: Collect 18-25% penalty interest if owner redeems

• OR: Keep the property if owner doesn't redeem

• PLUS: Collect rent during the entire redemption period

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TIMELINE:

• 6-18 months total (including redemption period)

• Shorter than tax liens, longer than tax deeds

• Know your outcome by end of redemption period

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OUTCOMES:

• OWNER REDEEMS: You profit from high penalty interest (18-25%)

• OWNER DOESN'T REDEEM: You keep the property for rental or sale

• DURING PERIOD: Collect rent for passive income

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RISK LEVEL: LOW-MEDIUM

• Lower risk than tax deeds (you get interest or property)

• Higher returns than standard tax liens (penalty rates are higher)

• Property value protects your downside

• You collect rent during waiting period

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BEST FOR:

• Investors who want high interest income

• Those who want property acquisition upside

• Balancing steady income with growth potential

• The ultimate "win-win" investment strategy

Tax Lien Example #1: $10,000 Investment

Entry Level - Perfect for Conservative Investors

YOUR CAPITAL: $10,000

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ALLOCATION: 2 Tax Liens

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LIEN #1:

• Investment: $5,000

• Property Value: $75,000 (15x coverage)

• Interest Rate: 16% annually (Florida state-mandated)

• Timeline: Owner redeems after 10 months

• Your Profit: $5,000 × 16% × (10/12) = $667

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LIEN #2:

• Investment: $5,000

• Property Value: $68,000 (13.6x coverage)

• Interest Rate: 14% annually (Arizona state-mandated)

• Timeline: Owner redeems after 14 months

• Your Profit: $5,000 × 14% × (14/12) = $817

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YOUR TOTAL RETURNS:

Total Profit: $1,484 in 12-14 months

Return: 14.84% on your $10,000

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Compare to Alternatives:

• Savings Account @ 4%: $400 profit

• YOU EARN: 3.7x MORE

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Risk Protection:

Both properties worth 13-15x your investment - even in worst case scenario

(foreclosure), you're protected by massive property value cushion

Tax Lien Example #2: $20,000 Investment

Small Diversification - Better Risk Management

YOUR CAPITAL: $20,000

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ALLOCATION: 4 Tax Liens (Better Diversification)

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LIEN #1: $6,000 on $90K property @ 18% interest

• Owner redeems after 12 months

• Profit: $1,080

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LIEN #2: $5,500 on $82K property @ 15% interest

• Owner redeems after 11 months

• Profit: $758

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LIEN #3: $4,500 on $70K property @ 16% interest

• Owner redeems after 9 months

• Profit: $540

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LIEN #4: $4,000 on $95K property @ 12% interest

• Owner redeems after 18 months

• Profit: $720

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YOUR TOTAL RETURNS:

Total Profit: $3,098 over 12-18 months

Return: 15.49% blended annual return

Monthly Passive Income: ~$258/month average

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Compare to Alternatives:

• Stock Market @ 10%: $2,000 profit over same period

• YOU EARN: 55% MORE

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Risk Protection:

4 different properties worth 15-24x your investments - if one has an issue,

the other three still perform well

Tax Lien Example #3: $50,000 Investment

Portfolio Approach with Foreclosure Bonus - Life-Changing Returns

YOUR CAPITAL: $50,000

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ALLOCATION: 8-10 Tax Liens (Diversified Portfolio)

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SCENARIO: 7 liens REDEEM normally (typical 85-90% outcome)

• Total capital in redemptions: $42,000

• Average interest rate: 15%

• Average timeline: 13 months

• Profit from redemptions: $42,000 × 15% × 1.083 = $6,825

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SCENARIO: 1 lien FORECLOSES (10-15% probability - THE BONUS)

• Your lien: $8,000

• Property value: $110,000

• Owner doesn't pay → You foreclose

• Foreclosure costs: $5,000 (legal, title, holding)

• You sell property for: $95,000 (86% of market value - quick sale)

• Foreclosure profit: $95,000 - $8,000 - $5,000 = $82,000

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YOUR TOTAL RETURNS:

Redemption Profit: $6,825

Foreclosure Windfall: $82,000

Total Profit: $88,825 in 18-24 months

Total Return: 177.65% (turn $50K into $138,825!)

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Compare to Alternatives:

• Stock Market @ 10% over 2 years: $10,500 profit

• YOU EARN: 8.5x MORE

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This is how $50K becomes life-changing money - enough for a car, down

payment on a house, or funding your child's education

Tax Deed Example #1: $10,000 Investment

Quick Flip Strategy - Fast Returns

YOUR CAPITAL: $10,000

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STRATEGY: Win tax deed auction, light renovation, quick flip

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THE DEAL:

Purchase Price: $10,000 (winning bid at auction)

Property Market Value: $45,000

Your Acquisition Cost: 22% of market value!

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Property Condition: Needs cosmetic work

• Paint interior/exterior

• New carpet/flooring

• Minor repairs

Renovation Budget: $3,500

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Timeline:

• Month 1-2: Complete light rehab

• Month 3-4: List and sell property

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Sale Strategy: Quick sale, priced to move

Sale Price: $38,000 (84% of market value)

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YOUR RETURNS:

Sale Price: $38,000

Less Purchase: -$10,000

Less Renovation: -$3,500

Net Profit: $24,500 in just 4 months!

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Return: 245% in 4 months

Annualized Return: 735% annual return

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Compare to Alternatives:

• Savings @ 4% for 4 months: $133 profit

• YOU EARN: 184x MORE

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This is how you can turn $10K into $34,500 in 4 months!

Tax Deed Example #2: $20,000 Investment

Two Options: Flip for Big Profit OR Hold for Passive Income

YOUR CAPITAL: $20,000

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THE DEAL:

Purchase Price: $20,000 (tax deed auction)

Property Market Value: $85,000

Your Acquisition Cost: 23% of market value!

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Property Condition: Needs moderate rehab

• Kitchen renovation

• Bathroom updates

• New flooring throughout

Renovation Budget: $8,000

Total Investment: $28,000

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Timeline: 6 months (3 months rehab, 3 months to rent/sell)

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OPTION 1 - FLIP FOR PROFIT:

Sale Price: $78,000 (92% of market value, fully renovated)

Less Total Investment: -$28,000

Net Profit: $50,000 in 6 months

Return: 250% (turning $20K into $70K!)

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OPTION 2 - HOLD AS RENTAL:

Monthly Rent: $1,100

Annual Gross Income: $13,200

Less Property Mgmt/Maintenance: $1,200/year (10%)

Net Annual Income: $12,000/year

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Returns if Held:

• Cash-on-Cash: 42.8% annually ($12K on $28K invested)

• Property Appreciation: 3-5% = $2,550-$4,250/year

• Total Annual Return: $14,550-$16,250 (52-58% annually)

• PLUS: Tax benefits from depreciation

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This property pays you $1,000+/month in passive income FOREVER while

appreciating in value!

Tax Deed Example #3: $50,000 Investment

Portfolio Approach: Flip Profits + Rental Income = Wealth Building

YOUR CAPITAL: $50,000

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STRATEGY: 2 Properties - One to flip, one to hold

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PROPERTY #1: FLIP FOR IMMEDIATE PROFIT

Purchase: $25,000 (tax deed auction)

Market Value: $95,000

Renovation: $7,000 (kitchen, bath, paint)

Timeline: 5 months (2 months rehab, 3 months to sell)

Sale Price: $85,000 (quick sale at 89% of market)

Profit: $85,000 - $25,000 - $7,000 = $53,000 profit

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PROPERTY #2: HOLD FOR RENTAL INCOME

Purchase: $25,000 (tax deed auction)

Market Value: $110,000

Renovation: $10,000 (full rehab)

Monthly Rent: $1,300

Annual Rental Income: $15,600

Annual Expenses: $1,800 (mgmt, maintenance, insurance)

Net Annual Income: $13,800

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YEAR 1 RETURNS:

• Property #1 Flip: $53,000 (one-time profit)

• Property #2 Rental: $13,800 (ongoing)

• Total Year 1 Income: $66,800

• Return on $50K: 133.6%

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YEAR 2+ RETURNS (Property #2 Continues):

• Rental Income: $13,800/year

• Property Appreciation: ~$4,000/year (3-4%)

• Total Annual: $17,800/year

• Annual Return: 50.9% on original $35K ($25K + $10K)

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THIS IS WEALTH BUILDING:

Immediate flip profit funds your lifestyle today, while rental property

generates passive income forever!

Redeemable Deed Example #1: $10,000 Investment

Owner Redeems - High Interest Income

YOUR CAPITAL: $10,000

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STRATEGY: Win redeemable deed with 12-month redemption period

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THE DEAL:

Purchase Price: $10,000 (redeemable deed auction)

Property Market Value: $72,000

Redemption Period: 12 months (owner can pay and reclaim property)

Redemption Interest Rate: 24% annually (state-mandated penalty rate)

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What Makes This Different:

• Higher interest than regular tax liens (24% vs. 15% typical)

• You own the property during redemption period

• If owner doesn't redeem, you keep the $72,000 property!

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OUTCOME: Owner Redeems After 8 Months

Owner pays redemption amount to reclaim property

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YOUR RETURNS:

Your Investment: $10,000

Redemption Interest: $10,000 × 24% × (8/12) = $1,600

Total Profit: $1,600 in 8 months

Annualized Return: 24%

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Compare to Alternatives:

• Regular Tax Lien @ 15%: Would earn $1,000

• YOU EARN: 60% MORE with redeemable deed

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The Safety Net:

If owner had NOT redeemed, you would own a $72,000 property for just

$10,000 - that's an instant $62,000 in equity!

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This is why redeemable deeds are the "best of both worlds" - high interest

if they pay, massive equity if they don't!

Redeemable Deed Example #2: $20,000 Investment

Owner DOESN'T Redeem - THE JACKPOT Scenario!

YOUR CAPITAL: $20,000

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STRATEGY: Win redeemable deed, collect rent, then own property

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THE DEAL:

Purchase Price: $20,000 (redeemable deed auction)

Property Market Value: $95,000

Redemption Period: 18 months

Redemption Interest Rate: 20% annually

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During Redemption Period (18 months):

• Property is occupied (tenant or original owner)

• You collect rent: $900/month × 18 months = $16,200

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OUTCOME: Owner Does NOT Redeem (This is the BONUS!)

After 18 months, redemption period expires

You now own the $95,000 property outright!

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YOUR OPTIONS:

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OPTION A - SELL THE PROPERTY:

Sale Price: $95,000 (market value)

Less Original Investment: -$20,000

Less Selling Costs: -$3,000 (real estate fees, closing)

Plus Rent Collected: +$16,200

Total Profit: $88,200 in 18 months

Return: 441%

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OPTION B - KEEP AS RENTAL:

You now own $95,000 property free and clear (no mortgage!)

Monthly Rent: $900

Annual Income: $10,800

Annual Yield: 54% on your original $20,000 investment

Keep forever for passive income!

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This is the JACKPOT scenario - you collected $16,200 in rent WHILE

waiting, then either sold for $88,200 profit OR kept a $95,000 property

that generates $10,800/year forever!

Redeemable Deed Example #3: $50,000 Investment

Portfolio with Mixed Outcomes - Diversified Returns

YOUR CAPITAL: $50,000

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STRATEGY: 2 Redeemable Deeds - Diversified approach

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PROPERTY #1: Owner REDEEMS (You earn high interest + rent)

Investment: $25,000

Property Value: $88,000

Redemption Period: 10 months

Interest Rate: 22% annually

Monthly Rent During Period: $850

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Outcome - Owner Redeems:

• Interest Earned: $25,000 × 22% × (10/12) = $4,583

• Rent Collected: $850/month × 10 months = $8,500

• Total from Property #1: $13,083

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PROPERTY #2: Owner DOESN'T Redeem (You keep the property!)

Investment: $25,000

Property Value: $105,000

Redemption Period: 18 months

Monthly Rent During Period: $1,000

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Outcome - You Keep Property:

• Rent Collected: $1,000/month × 18 months = $18,000

• Redemption period expires - YOU OWN $105,000 property!

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Your Options for Property #2:

OPTION A - Sell:

• Sale Price: $98,000 (quick sale)

• Less Investment: -$25,000

• Profit: $73,000

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OPTION B - Keep as Rental:

• Own $105,000 property free and clear

• Monthly Rent: $1,000 = $12,000/year passive income forever

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YOUR TOTAL RETURNS:

Property #1 Profit: $13,083 (interest + rent)

Property #2 Profit: $73,000 if sold (or $12,000/year if kept)

Total Profit if Both Sold: $86,083 in 18 months

Return: 172% on $50,000

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OR keep Property #2 for ongoing passive income of $12,000/year!

Business Model

Revenue Structure:

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Investment In:

• Investor capital: $50,000-$100,000 (Round 1)

• Target: 20-40 tax liens

• Average lien: $8K-15K each

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Revenue Split:

• 60% to Investors (LP returns)

• 40% to Fund (GP management + performance)

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Investor Returns:

• Target: 12-18% net annual returns

• Quarterly distributions

• 6-24 month hold period per lien

Deal Sourcing & Acquisition Process

STEP 1: DEAL SOURCING (Continuous)

• Monitor 3-5 county tax assessor websites weekly

• Receive advance notice 30-60 days before auctions

• Analyze 100+ properties per auction cycle

• Identify 20-30 high-quality opportunities per cycle

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STEP 2: DUE DILIGENCE (2-3 weeks before auction)

• Title searches on all target properties

• Property valuations (comparable sales analysis)

• Physical inspection (drive-by or walk-through)

• Legal review (verify clear title, no environmental issues)

• Filter down to top 10-15 properties per auction

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STEP 3: ACQUISITION STRATEGY (Auction day)

• Attend county auction in person

• Bid strategically (max 10% of property value)

• Acquire 5-10 liens per auction

• Immediate documentation and recording

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STEP 4: POST-ACQUISITION (Ongoing)

• Track redemption deadlines (12-24 months)

• Send quarterly payment reminders to property owners

• Monitor property condition (quarterly inspections)

• Prepare foreclosure paperwork if needed

Three Ways We Profit

MODEL 1: REDEMPTION (85-90% of deals)

Property owner pays back taxes + interest

→ We collect: Principal + 10-25% state-mandated interest

→ Timeline: 6-24 months

→ Example: $10K lien @ 18% = $1,800 profit in 12 months (18% return)

MODEL 2: FORECLOSURE + SELL (5-10% of deals)

Owner doesn't pay → We foreclose → Sell property quickly

→ We acquire: Property at 80-95% discount to market value

→ Timeline: 18-30 months total (includes foreclosure process)

→ Example: Foreclose on $100K property for $8K lien → Sell for $85K = $77K profit

→ Return: 962% on capital (though longer timeline)

MODEL 3: FORECLOSURE + HOLD/RENT (2-5% of deals - best opportunities)

Owner doesn't pay → We foreclose → Convert to rental or hold for appreciation

→ We acquire: Property at massive discount

→ Timeline: Long-term hold (3-10 years)

→ Example: Foreclose on $120K property for $10K → Rent for $1,200/month

→ Returns: $14,400/year rental income (144% annual yield) + appreciation + depreciation tax benefits

→ Option: Source property to investor partner (we take finder's fee or profit share)

How We Allocate Capital to Deals

ALLOCATION FRAMEWORK: Risk-Adjusted Opportunity Sizing

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TIER 1 DEALS (Premium Quality - 40% of capital)

• Property value 15:1+ to lien amount

• Prime locations, excellent condition

• High redemption probability (95%+)

• Allocation: $15K-$25K per lien

• Example: $8K lien on $120K property in desirable neighborhood

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TIER 2 DEALS (Core Holdings - 45% of capital)

• Property value 10:1 to 15:1 ratio

• Good locations, average condition

• Strong redemption probability (85-90%)

• Allocation: $8K-$15K per lien

• Example: $10K lien on $110K property in stable area

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TIER 3 DEALS (Opportunistic - 15% of capital)

• Property value 8:1 to 10:1 ratio

• Value-add opportunities, foreclosure upside

• Moderate redemption probability (70-80%)

• Allocation: $5K-$10K per lien

• Example: $12K lien on $95K property needing cosmetic work

• If foreclose → Big profit potential on flip/rental

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PORTFOLIO CONSTRUCTION EXAMPLE ($100K fund):

• 3 Tier 1 deals × $15K avg = $45,000 (safe, steady returns)

• 5 Tier 2 deals × $10K avg = $50,000 (core diversification)

• 1-2 Tier 3 deals × $7.5K avg = $15,000 (upside potential)

→ Total: 9-10 liens across 15-20 properties analyzed

Competitive Advantages

Why We Win:

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1. Operational Expertise

• 15+ years managing complex operations

• Built systems for deal flow at scale

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2. Deal Sourcing

• Direct relationships with county assessors

• Proprietary analysis framework

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3. Risk Management

• Only bid on liens with 10:1+ value ratios

• Title searches before every bid

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4. Scale Economics

• Attend multiple auctions monthly

• Diversification across 20-40 properties

Financial Projections

Year 1 (Base Case):

• Capital Raised: $500,000

• Liens Acquired: 30-40

• Avg Interest Rate: 15%

• Projected Investor Returns: 12-15%

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Year 2 (Growth):

• Additional Capital: $500K-$1M

• Liens: 60-80 total

• Projected Returns: 15-18%

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Year 3 (Mature):

• Fund Size: $2-3M

• Liens: 150-200

• Projected Returns: 18-20%

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Key Assumptions:

• 90% redemption rate | 10% foreclosure rate

• 12-18 month average hold period

Use of Funds

How We Deploy $100K:

Team

Kresnier Perez - Founder & Fund Manager

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• MBA, Boston University

• MS Software Engineering, Boston University

• Harvard Business School CORe Certified

• 15+ years performance marketing experience

• Managed $500K+ monthly budgets (Boeing, Sally Beauty, Innodata)

• Documented $46M+ revenue contribution

• Built & scaled marketing operations across 8+ industries

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Advisors:

• Legal: [Attorney Name], Real Estate Law, [Firm]

• Accounting: [CPA Name], Tax Strategy, [Firm]

• Real Estate: [Agent/Broker Name], [X] years local market

Current Deal Pipeline

Current Opportunities (Next 60 Days):

Risk Factors & Mitigation

Key Risks:

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1. Property Redemption Takes Longer

→ Mitigation: Diversify across 20-40 liens, stagger timelines

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2. Property Value Declines

→ Mitigation: Only bid on liens <10% of property value

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3. Foreclosure Costs Higher Than Expected

→ Mitigation: Attorney on retainer, pre-negotiated rates

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4. Market Downturn

→ Mitigation: Government-mandated minimum returns

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Insurance:

• Title insurance on all acquisitions

• Liability insurance for fund operations

• E&O insurance for management

Returns Comparison: All Three Strategies

PORTFOLIO STRATEGY: We deploy capital across all three strategies

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• Tax Liens (60%): Foundation - steady, predictable returns with government backing

• Tax Deeds (30%): Growth engine - high-upside opportunities for wealth building

• Redeemable Deeds (10%): Optionality - high interest with property ownership potential

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This diversified approach maximizes returns while managing risk across multiple exit strategies.

Your Investment Returns: Complete Picture

Compare to Traditional Investments:

Savings Account @ 4%: $10K = $400 | $20K = $800 | $50K = $2,000

Stock Market @ 10%: $10K = $1,000 | $20K = $2,000 | $50K = $5,000

YOU EARN: 3x to 184x MORE than traditional investments!

Why This Works: Key Success Factors

1. GOVERNMENT-BACKED RETURNS

• Interest rates are STATE-MANDATED (10-25% annually)

• Not subject to market fluctuations or economic conditions

• Legal framework protects investor position

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2. MASSIVE COLLATERAL COVERAGE

• We only buy liens/deeds where property value is 10-20x our investment

• Example: $10K lien on $100K property = 90% downside protection

• Even in worst case (foreclosure), we profit significantly

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3. MULTIPLE PROFIT PATHS

• Path 1: Owner redeems → Collect government-mandated interest (85-90%)

• Path 2: Foreclose + Sell → Acquire property at 80-95% discount, quick flip

• Path 3: Foreclose + Hold → Convert to rental income stream or appreciate

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4. DIVERSIFICATION ACROSS STRATEGIES

• Tax Liens (60%): Steady, predictable income foundation

• Tax Deeds (30%): High-upside wealth building opportunities

• Redeemable Deeds (10%): Hybrid approach with optionality

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5. FIRST-POSITION LIEN STATUS

• Tax liens have PRIORITY over mortgages, HELOCs, and other debt

• If foreclosure occurs, we're first in line

• Mortgage companies often pay us to protect their position

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6. INEFFICIENT MARKET ADVANTAGE

• Most investors lack capital, knowledge, or time to participate

• Institutional investors focus on larger deals (we're in the sweet spot)

• Limited competition = better deals at auctions

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7. SCALABLE & REPEATABLE PROCESS

• Auctions happen monthly in every county

• Systematic due diligence process

• Can deploy $100K or $10M with same process

Investor Profiles: Who This Is For

THE CONSERVATIVE INVESTOR ($10K-$30K)

• Looking for: Steady returns better than savings/CDs

• Risk tolerance: Low - wants government backing and collateral protection

• Best strategy: Tax Liens (60% of allocation) + Redeemable Deeds (40%)

• Expected returns: 14-24% annually with minimal risk

• Time commitment: Fully passive - we handle everything

THE BALANCED INVESTOR ($30K-$50K)

• Looking for: Strong returns with manageable risk

• Risk tolerance: Medium - willing to accept some active management for higher upside

• Best strategy: Mix of all three (60% Liens, 30% Deeds, 10% Redeemable)

• Expected returns: 50-150% total over 18-24 months

• Time commitment: Quarterly updates, annual strategy review

THE WEALTH BUILDER ($50K-$500K+)

• Looking for: Maximum wealth accumulation and portfolio diversification

• Risk tolerance: Medium-High - understands real estate and wants property ownership

• Best strategy: Emphasis on Tax Deeds (50%) for property acquisition + rentals

• Expected returns: 150-300% over 2 years + ongoing rental income streams

• Time commitment: Semi-annual strategy calls, co-investment opportunities, priority access

• Bonus: Build rental portfolio while generating immediate flip profits

No matter your risk profile or investment size, we have a strategy that works for you.

Minimum investment: $10,000 | Maximum: No limit

All investors receive quarterly reporting, annual audits, and direct manager access.

Investment Tiers

Flexible Entry Points for All Investor Types:

Fund Structure: LLC (Limited Partnership available)

Hold Period: 2-3 years • Distribution: Quarterly

Target Returns: 12-18% annually • Management Fee: 2% annually

Performance Fee: 20% above 10% hurdle

Investment Terms & Rights

All Investors Receive:

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• Quarterly financial statements

• Annual audited financials

• Monthly deal pipeline updates

• Direct access to fund manager

• Approval rights on material changes

• First right of refusal on Fund II

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Investors $50K+ Also Receive:

• Priority allocation on best deals

• Semi-annual strategy calls

• Co-investment opportunities on larger deals

The Ask

We're Raising: $250,000 - $1,000,000

Entry Points: $10K | $20K | $30K | $40K | $50K | $50K+

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All investors participate in diversified lien portfolio

Returns distributed quarterly based on capital contribution

Minimum 12% target return across all tiers

Next Steps for Interested Investors:

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Week 1: Review offering memorandum + sample deal analysis

Week 2: Due diligence call with legal/advisors

Week 3: Final Q&A + commitment

Week 4: Wire funds + execute docs

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Contact: Kresnier@OptimisticRealty.org

Website: OptimisticRealty.org

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Timeline is Critical: Next auctions scheduled in 30-45 days

First-mover advantage on best properties