(1) What does LienIQ do?
LienIQ is a new fin-tech firm (started in 2016) focused on selecting, evaluating, purchasing, and working-out Non-Performing second Liens / Loans (NPL’s) in non-judicial states. Our team has extensive experience in credit modeling, finance, real estate, and technology. We utilize a proprietary quanta-mental pricing framework developed for valuing first mortgages to help us price lien portfolios and deliver returns.
Our business model is to take principal positions in distressed liens and profit from the work-out resolution. In certain instances, we sell liens to qualified third parties at a mutually agreed upon price that provides us with a premium.
(2) What is the background of your management team?
Our management team includes team members with backgrounds in credit modeling, finance, real estate, and technology. Combined we have over 20 years of experience in these competencies.
We have used our proprietary quanta-mental approach to price millions of dollars in liens and have invested and worked-out several ourselves. In addition, we have an extensive network for sourcing liens and distributing them to qualified third parties.
(3) How large is the second lien market you target?
Of the over ~$675Bn of second liens outstanding we conservatively estimate that 2% (the current delinquency rate for similar assets) or ~$13.5Bn are distressed (90+ days delinquent). We think purchasing and working-out a $50MM slice (<1%) of the market over time is eminently reasonable and possible.
(4) What is the typical return profile of a second lien on your platform?
Each lien’s pricing and resolution differ greatly. Therefore the variance on an individual lien’s expected payoff is high. However ON AVERAGE, we have seen returns in excess of 20% over the course of 6-12 months. Despite these numbers, we stress that each lien is idiosyncratic and the resolutions are highly dependent on the individual circumstances of the case. In some cases, liens resolve at zero and investors lose the total amount of their principal balance. We do not guarantee returns and we only recommend experienced and accredited investors with high risk tolerances to apply to become funders.
(5) I am a capital provider / specialty investor looking to invest money with your firm. What should I do to get in touch?
We are performing an Initial Coin Offering (ICO) to raise money to seed the fund and its operations. Please feel free to contact us for more details.
(6) How do I apply to sell liens to or buy liens from LienIQ?
To sell liens to LienIQ or request our help in evaluating portfolios, please fill out our contact form completely and indicate in the message box what you are seeking. A member of our team will contact you afterwards with further instructions.
From time to time, we also sell liens to qualified third parties. To apply to buy liens from us, please fill out our subscribe form completely and we will send you our listings intermittently.
(7) If I represent a law firm / trustee / servicer / collections agent / member of the press looking to get in touch with your firm, then what do I do?
Please fill out our contact form completely and a member of our business development team will respond.