How CORE Tax Deeds Protects Investor Capital

When investing in real estate-backed opportunities, one of the most common concerns is capital preservation. At CORE Tax Deeds LLC, we’ve built an infrastructure specifically designed to protect investor capital while unlocking significant upside potential in the Texas tax deed market. In this article, we break down the key safeguards, strategies, and systems that help minimize downside risk while enhancing investor confidence.

1. Strategic Due Diligence Before Every Purchase

Before bidding on any property, CORE performs a rigorous due diligence process, including:

• Title & Lien Research: Public records are searched for municipal liens, IRS liens, or legal encumbrances.
• Property Walkthroughs: Our team or contracted partners physically inspect the property when possible.
• Neighborhood Analysis: We examine surrounding property values, rental comps, and resale velocity.
• Redemption Penalty Review: In Texas, properties redeemed after a tax deed sale are required to pay a 25% to 50% penalty, a guaranteed interest return to the investor.

By vetting properties in advance, we dramatically reduce the risk of acquiring unprofitable or encumbered assets.

2. Diversification Across 254 Counties

Texas has 254 counties, each conducting monthly tax deed auctions. CORE leverages this geography by:

• Spreading capital across diverse property types (residential lots, small acreage, commercial parcels)
• Avoiding overexposure to any one market
• Targeting regions with strong historical redemption and resale activity

This diversified approach insulates the fund from hyper-local downturns and enhances the likelihood of consistent returns.

3. Immediate Securing and Insurance of Properties

After acquiring a property, CORE acts quickly to:

• Change locks and secure entry points
• Insure the property through specialty vacant property policies
• Post notices of ownership to deter trespassing or vandalism

This rapid response minimizes liability and preserves property value from day one.

4. Transparent Reporting to All Investors

CORE is committed to full transparency with:

• Regular investor updates (monthly or quarterly)
• Property-level detail: purchase price, location, status
• Summary portfolio performance metrics
• Access to audited financials through our SEC filings

By keeping investors informed, we maintain accountability and ensure everyone is aligned on fund performance.

5. Legal Title Clearance for Marketability

We do not simply purchase and resell properties. Each asset is evaluated for:

• Quiet title action (if needed)
• Lien resolution
• Title insurance eligibility

These steps are essential to making each property eligible for traditional sale, refinancing, or further development. Ensuring clear title ownership is crucial for preserving capital.

6. Class A Advantage: First Right to Purchase Properties

For Class A investors, CORE provides the First Right to Purchase wholesale properties before they are listed or sold through our Elite Advantage Program. This ensures early access to discounted deals and allows investors to choose based on their own criteria.

This unique structure adds a layer of control and confidence for participants who want more influence over their investment path.

7. Use of Conservative Financial Assumptions

We do not rely on speculative projections. CORE’s model is built on:

• Redemption penalties guaranteed by Texas law (25% to 50%)
• Cost basis well below market value (targeting 30–50 cents on the dollar)
• Short holding timelines

This conservative posture limits downside exposure and helps ensure capital is preserved even in a slow market.

8. No Capital Losses to Date

Our founder, John Berlet, has a 30-year track record in the Texas tax deed space with no capital losses on recorded deals. While past performance is not a guarantee of future results, our historical success reflects prudent asset selection, risk controls, and experienced execution.

Final Thoughts

CORE Tax Deeds is not just about chasing high returns. We are committed to protecting your principal through proactive management, thorough due diligence, and clear reporting. For investors seeking a real estate-backed path with mitigated downside, our Texas-focused strategy offers an accessible, transparent, and risk-managed solution.

To learn more or explore opportunities, visit invest.coretaxdeeds.com.

This communication is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Investing in securities involves risks, and investors should consult their legal or financial advisors before investing. This offering is made under Regulation CF and is subject to limitations and disclosures outlined at invest.coretaxdeeds.com.