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Subject:  Re: TLCs as the RE market drops Date:  1/29/2007  5:00 PM
Author:  psuasskicker6 Number:  47 of 52

Also, when I buy and sell in bulk for larger investors (such as the above), I do the kind of analysis you mention. However, most NPV analyses would be at much higher rates than 6%.

I'm actually really curious how you would calculate this based on the risk of the investment. Maybe it's proprietary and you can't get into it, so no problem if that's the case. But it seems like it could be done one of two ways...
1) Expected rate of return, then factor risk into it. Very simplistically, I mean saying "this lien pays 15%, but we think it'll only return that 80% of the time, so we'd actu