As a longtime tax lien investor, I saw first hand that tax liens make a solid investment, especially now, as we are entering a deep recession. The problem is that the tax lien market largely analog, so it has always been difficult to buy, trade, and manage tax liens through their life cycle. At Unique Exchange, we saw a real need for a digital exchange to service the primary and secondary tax lien markets for sophisticated investors," said Victor Vilmont, President and CEO of Unique Exchange.

Every year, municipal governments in the US issue millions of liens for unpaid property taxes. This special instrument is unusual in that it offers security over the property and can average as high as 15% yields across a diversified portfolio. Tax liens are available for both residential and commercial properties.

 
"With the recession hitting hard, we see factoring government tax liens as an alternative asset class uncorrelated to the broader markets. Foreclosures will likely index higher over the next two years, and the combination of government prescribed interest rates and first-lien priority status, property tax liens are highly attractive and a compelling factored receivable strategy," said Kelly Klatik, Managing Partner with Cypress Hills Partners, whose primary focus is a receivable lending strategy with loan facilities secured against various alternative assets. "Unique Exchange did an excellent job of introducing this market to us and collaborating to formulate a strategy to balance each jurisdiction's unique rules and regulations."

The tax lien market is highly fragmented, with very limited digital trading and zero automation available. Prior to the Unique Exchange platform, investors typically had to go through a long and arduous process spanning several different service providers, often with multiple manual steps to build a portfolio and optimize returns. Unique Exchange streamlines it into a single-page form and one-button-click action.

We aim to modernize the market by becoming the first solution to completely digitize and automate the US and International tax lien market, providing investors with an easy to use and convenient system that uses advanced trading technologies, bidding engine, fractional units, and price-matching to execute trades," said Mr. Vilmont, President and CEO of Unique Exchange who is also the inventor of Method and System for Buying and Selling Property Tax Liens and Determining Property Tax Lien Price and Fair Value on a Secondary Market.

"In developing Unique Exchange, we have been preparing for the harsh economic conditions recognizing the demand for the alternative non-conventional assets. Property tax liens are perfect in this sense as they allow investors a secure way to get exposure to the distressed debt and foreclosures. Certainly, it's one of a kind beneficial asset in the upcoming recession and a great starting point for the alternative secure investment portfolio. Other similar assets will be added to our platform in the future.