Who Outsources Property Tax Management?
- Banks and financial institutions that have commercial or residential loan portfolios secured by real estate or real estate assets.
- Capital funds that invest in real estate or in pools of loans collateralized by real estate, especially distressed portfolios.
- Rental home or property management companies and home builders.
- Business that operate in hundreds or thousands of locations and branches.
- Loan servicers, note buyers or other institutions that require property tax monitoring.
- Highly regulated industries that require third party tax verifications for policies or regulatory compliance.
- Any industry wth multiple locaitons in multiple jurisdictions that wants the lowest possible tax liability and the lowest overall cost of tax management.
Outsourcing By Industry (Markets Served)
- Capital Funds: Funds outsource taxes to Cold River to handle their large, complex portfolios of performing and non-performing loan pools and real estate. Having the due diligence, appeal, payment and recovery services all located in the same group leverages their capacity to make great deals.
- Rental Home Companies: Outsource property taxes to Cold River to consolidate a multi-market tax challenge into one comprehensive solution. Managing each market nuance makes a tedious process like taxes even more difficult. Reporting in this industry is crucial as taxes often represent the biggest single expense, and a one-source solution is critical to good operational efficiency.
- Banks and Lending Institutions: Banks and lenders don’t want to own real estate and worse, don’t want the real estate they foreclosed or loaned money on to be lost to tax sales. Monitoring the property tax status of the bank's real estate based collateral is basic risk management. In a highly regulated industry like banking, Cold River provides the compliance tools your bank needs to head off delinquencies or catastrophic property losses.
- Loan Servicers: Loan servicers outsource to Cold River to manage accruals and funding needs. Monitoring, reconciling and making sure that taxes are paid timely and accrued for properly is key in the servicing industry. Cold River’s back office solution fits a servicer’s needs and bolts on to the current process with ease.
- Homebuilders: The nature of homebuilding is to take a large parcel, make a lot of new smaller parcels out of it then sell it as a part of someone’s new home. That involves a chane in parcel counts, values, tax amounts and property usage. Homebuilders face the challenge of doing pro-rations on new homes whose lot has never had its own tax bill. All this on top of the normal tax intricacies make outsourcing property taxes the cheapest and most efficient solution.