Tax deed investing requires significant capital at cash-only auctions.
Traditional financing rarely works due to title issues, leaving investors with limited options.
Tax Sale Resources and Mount North Capital offer an innovative profit-share model, giving experienced investors a secure, scalable funding solution without relying on traditional debt or bank loans.
This partnership approach ensures that both sides are invested in the success of each transaction.
Why Tax Deed Investors Need Alternative Funding Options
The Capital Challenge: Cash-Only Auctions
Unlike conventional real estate transactions, tax deed sales require full payment in cash at the time of auction.
This requirement forces investors to hold significant liquidity or risk missing opportunities. It’s a barrier that keeps many part-time investors from scaling and limits even experienced investors to only what they can self-fund.
Without alternative funding, they can't compete effectively at larger auctions or diversify across markets.
Ineligibility for Traditional Bank Financing
Banks typically refuse to finance tax deed purchases due to title insurance limitations and legal complexities. These properties often cannot qualify for mortgages until after quiet title actions and legal clearance.
This restriction blocks investors from using standard leverage, making it impossible to use traditional financing to expand buying power or improve ROI on cash-heavy acquisitions.
Title Insurance Limitations on Tax Deeds
Title insurance companies often exclude tax deed properties due to unclear ownership history and potential liens or claims.
Without title insurance, the resale process can be risky or require legal remediation. This lack of clear title limits financing options and increases the need for investors to do extensive due diligence, pushing many to seek safer or easier investment vehicles instead.
Bridging the Gap with Dedicated Investment Funds
Given these challenges, dedicated funds like Mount North Capital fill the gap by offering structured capital solutions tailored to tax deed investing.
Through our profit share approach, investors get access to capital without taking on traditional debt, allowing them to participate in larger, higher-quality deals and grow their portfolios strategically while sharing the risk and reward with experienced partners.
Mount North Capital’s Profit Share Model: A Secure Alternative to Lending
Not a Loan, but a Co-Ownership Structure
Mount North Capital's approach is not lending in the traditional sense.
Instead, it’s a true partnership where both the fund and the investor share ownership and risk. This structure aligns interests, as both sides focus on maximizing property resale value and managing expenses carefully.
Unlike loans that require repayment regardless of outcome, the profit share approach ensures the fund only profits when the investor does.
Owning the Property Upfront to Eliminate Foreclosure Risk
Because the fund purchases and owns the tax deeds outright, there’s no foreclosure process or borrower default risk.
Investors avoid the complications and costs of legal foreclosure if things go wrong.
This direct ownership model simplifies control over the property, enabling quicker turnaround times, more reliable exit strategies, and streamlined management of property improvements or resale.
Collateralization Backed by Actual Property Ownership
Investor capital in Mount North Capital’s fund is secured by direct ownership of physical properties.
This tangible collateral reduces risk compared to lending against notes or unsecured debt. Investors in the fund know their money is backed by real estate assets with measurable value, not theoretical IOUs.
This approach offers more security and transparency for both sides of the partnership.
Profit Splits Based on True Net Gains After Expenses
Rather than splitting gross proceeds, the profit share model calculates the split on true net profit after all expenses—acquisition, renovation, holding costs, legal fees, and sales commissions.
This ensures fairness and transparency while encouraging efficient project management.
Both the fund and the investor benefit from keeping costs controlled and maximizing resale value, creating a shared incentive for disciplined, profitable investing.
How the Profit Share Partnership Works for Experienced Investors
Requirements for Participation (Previous Tax Deed Purchase)
Our profit share program isn’t a training course. It’s designed for investors who already understand tax deed investing and have successfully completed at least one purchase.
This ensures that partners have realistic expectations, know how to underwrite deals, and can operate effectively in the auction environment.
By focusing on experienced investors, we maintain a higher-quality partner pool, thereby reducing operational risk for all parties involved.
Partner Tiers Defined by Deposit and Buying Power
Investor partners make a deposit that defines their buying power in the program.
Larger deposits unlock higher buying power and more favorable profit split tiers.
This tiered approach balances investor risk with opportunity while ensuring each partner has “skin in the game.” It also allows us to manage capital deployment responsibly across multiple markets and auctions.
Example of Profit Splitting Based on Expenses and Sales Price
Consider a deal purchased for $50,000 with $25,000 in additional expenses for renovations, fees, and holding costs. If the property sells for $100,000, the net profit of $25,000 is split according to the investor’s tier. Higher-tier partners with larger deposits earn a larger share of that profit. This transparent, expense-first accounting ensures that only actual profit is shared, aligning incentives and avoiding hidden costs.
Limits on Buying Power to Manage Risk and Support
We manage program risk by capping buying power for newer partners, typically at $1 million.
This ensures investors stay within manageable exposure levels while we can deliver high-quality support, underwriting, and auction logistics.
More advanced partners can qualify for higher buying power, but only after demonstrating consistent performance and reliability in prior deals.
Details on the Mount North Capital Fund for Accredited Investors
Evergreen Fund Structure with 2-Year Notes
Mount North Capital is structured as an evergreen fund with investor participation through 2-year notes.
This structure allows new capital to be deployed continuously while giving investors predictable commitment windows.
It also supports ongoing growth as the fund rotates capital through new deals over time.
Minimum Investment of $50,000
Participation in the fund is limited to accredited investors, with a minimum investment of $50,000.
This requirement ensures investors meet regulatory standards and understand the level of risk and commitment involved.
Double Digit Returns, Paid Quarterly
The fund offers double-digit returns, paid out quarterly.
This predictable cash flow appeals to investors seeking strong, secure real estate yields without the need to directly manage property renovations, auctions, or sales.
Direct Ownership of Properties Securing Investor Capital
Unlike lending models or unsecured notes, Mount North Capital’s investments are secured by the fund’s direct ownership of properties. Every dollar is backed by tangible real estate assets.
This approach reduces investor risk while maintaining flexibility to maximize returns through disciplined acquisition and resale strategies.
Property Types and Challenges in Tax Deed Investing
Vacant Land and Single-Family Homes as Common Purchases
Most tax deed investors focus on vacant land and single-family residential properties, which make up the bulk of auction listings.
These assets are typically easier to underwrite and resell, making them the backbone of many successful investing strategies.
Risks of Odd Parcels (Mailboxes, Roadways)
Counties often auction undesirable parcels like tiny slivers of land, utility easements, or even standalone mailboxes.
Without careful research, investors can accidentally buy worthless parcels that are impossible to resell. Our data tools help flag these risks before bidding.
Necessity of Thorough Underwriting to Avoid Unprofitable Buys
Even properties that seem promising can carry hidden costs—environmental contamination, demolition orders, code violations, or title issues.
Investors need rigorous underwriting to ensure their acquisitions have real resale value and profit potential.
How Our Data Flags Potential Pitfalls
The Research Platform integrates assessor records, environmental data, and previous sale history to identify problematic parcels early.
Investors can quickly filter out risky properties, focus on higher-value opportunities, and avoid expensive mistakes that can derail returns.
Geographic Strategy and Auction Types
State-Driven Variations in Tax Deed Laws
Tax deed laws are highly state-specific, with each jurisdiction having its own redemption periods, sale procedures, and legal requirements. Investors must understand local rules to plan acquisition, resale timelines, and exit strategies effectively.
Redemption Period Differences Across States
Some states have no redemption period, allowing immediate resale. Others require investors to wait months or even years before selling, tying up capital. Our tools and training help partners account for these differences when choosing markets.
Live Local Auctions vs Online Sales
Live auctions often offer less competition and better pricing, while online auctions can be more convenient but attract many more bidders. We support partners in navigating both types, helping investors develop a diversified acquisition strategy.
Identifying Less Competitive, Higher-Margin Markets
By combining data analysis with on-the-ground auction logistics, we help partners find markets with less competition and higher margin potential.
This approach avoids overpaying at popular sales and targets overlooked regions with better ROI.
Leveraging Tax Sale Resources Tools for Smarter Investments
Combining County Data, Environmental Risk, and Sales Records
The Tax Sale Resources platform unifies critical data sources—including county assessor records, environmental overlays, and previous sale results—into a single, searchable interface that simplifies research.
Using Predictive Analytics to Forecast Sale Outcomes
Proprietary algorithms forecast redemption odds, likely sale prices, and expected competition levels.
Investors can use these insights to prioritize the best opportunities and avoid unprofitable bids.
Sale Logistics Support for Partners
Tax Sale Resources doesn’t just provide data—we offer practical support. From managing auction registrations and logistics to ensuring proper documentation post-sale, we help partners execute confidently.
Avoiding Overpaying at Popular Online Auctions
Our market analysis helps our profit share partners avoid overheated online auctions with high competition and thin margins, instead guiding them to less competitive sales that offer better pricing and stronger potential returns.
Managing Risk in Tax Deed Investing
Underwriting Underlying Property Value as the Key Risk
The biggest risk in tax deed investing is overestimating property value.
Poor underwriting can leave investors with unsellable properties or losses after expenses.
Accurate valuation and cautious bidding are essential for profitability.
Accounting for Property Damage and Code Violations
Many tax deed properties come with deferred maintenance, code violations, or even demolition orders. Investors must budget for repairs and legal cleanup to avoid unexpected costs that can eat into profits.
How Profit Sharing Reduces Investor Exposure
Our profit share model aligns investor and fund interests, ensuring conservative underwriting and disciplined project management.
By sharing risk and reward, the model discourages overbidding and rewards careful planning.
Using Data to Avoid Low-Value or Unmarketable Properties
The Tax Sale Resources data tools help investors avoid common pitfalls like buying unusable parcels or properties with legal complications.
Better data means better decisions—and better returns.
Get Started with Tax Sale Resources Today
In summary, whether you're looking to expand your buying power through a profit share partnership, invest passively in a secured real estate fund, or improve your due diligence with comprehensive auction data, Tax Sale Resources offers solutions designed for experienced investors in the tax deed space.
To discuss how these services can support your investment goals, reach out to our team to learn more.
