What the Audited Financials Say (and Why They Matter to Investors)
When evaluating an investment opportunity, most investors focus on the potential for return. But savvy investors know the importance of looking under the hood. One of the most powerful tools available to prospective investors is the company’s audited financial statements. At CORE Tax Deeds LLC, our financials are reviewed and audited by a third-party CPA firm, ensuring transparency and credibility under Regulation Crowdfunding (Reg CF).
So what exactly do our audited financials tell you—and why should you care? Let’s take a closer look.
1. Third-Party Validation of Financial Integrity
Audited financials mean that an independent certified public accountant (CPA) has reviewed our books and confirmed that our financial reporting is accurate and compliant with generally accepted accounting principles (GAAP). This third-party validation assures investors that:
- Revenues and expenses are properly recorded
- Assets and liabilities are accurately reflected
- There is no evidence of misstatement or fraud
This level of scrutiny helps reduce investor uncertainty and demonstrates our commitment to operating above board.
2. Insight into Capital Allocation
Where does the money go?
Our audited statements detail how investor capital is being deployed. Investors can see how much has been allocated toward property acquisition, operational expenses, insurance, and property management. This helps you understand whether funds are being used efficiently and strategically.
At CORE Tax Deeds, the emphasis is on buying distressed real estate at steep discounts, insuring the properties quickly, and either reselling them or holding them for redemption or rental income. Our financials support that strategy with real, measurable activity.
3. Real Results: Tracking Revenue and Returns
Audited financials also allow investors to see the revenue generated from property sales and redemptions. This is critical in our model, where:
- Some properties are redeemed by former owners at a 25% or 50% premium
- Others are improved and resold at a markup
Seeing the actual numbers on gains from these transactions provides confidence that the model is not just theoretical, it’s working.
4. Transparency About Liabilities and Risk
Financial reports don’t just show the upside. They also reveal any liabilities, debt, or contingent risks. That transparency is essential for trust.
In our audited statements, you’ll find detailed line items for:
- Property carrying costs
- Operating expenses
- Any outstanding debts or payables
This helps investors understand how risks are being managed and what potential challenges may exist.
5. Compliance with Regulation Crowdfunding (Reg CF)
Under Reg CF, companies raising capital from the public must meet strict disclosure and financial reporting standards. CORE Tax Deeds complies with these rules, including submitting annual audited financials through the SEC’s EDGAR system.
This not only ensures legal compliance, but it also gives investors:
- Confidence in the legitimacy of the offering
- Access to standardized financial information
- Clear updates on performance
6. Year-over-Year Comparisons
As we continue to file annual reports, investors can begin to analyze trends in performance. Are revenues increasing? Are operating margins improving? How efficiently is capital being deployed?
The ability to compare one year to the next is key for long term investors who want to see consistency, progress, and performance improvements.
7. What Our Financials Reveal About Strategy
Our audited financials are not just about numbers, they tell a story.
They reveal:
- How disciplined we are in managing investor capital
- The pace at which we acquire and monetize properties
- Our preference for conservative debt levels
- The profitability of our strategy
Ultimately, they reinforce that our approach is measured, transparent, and built for scalability.
Why It Matters
As an investor, you are placing your trust in a team to manage your capital responsibly. Audited financials are one of the most concrete ways to verify that trust. They give you visibility into the company’s inner workings, protect you from misinformation, and allow you to evaluate risk more clearly.
We believe that trust isn’t given, it’s earned. That’s why we voluntarily go through a rigorous audit process, even when not all issuers under Reg CF choose to do so. It’s one more way we stand apart in the world of alternative real estate investing.
To view our latest audited financials, visit our offering page at invest.coretaxdeeds.com.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Prospective investors should consult with a financial advisor and carefully review all offering documents and audited financials before making an investment decision.