Konrad said the liens performed extremely well through the crisis with opportunities and yields climbing during the heart of the crisis. In a way they are like a low document loan for two to three years, which gives the property owner time to recover and pay the taxes. Liens typically carry a 5 percent interest rate, which is much lower than the 18 percent a municipality might charge, Konrad says. “If they didn’t have tax lien sales there would be a meaningful gap, especially in times of distress.” In a worst-case scenario, the tax lien holder can foreclose on a property, but typically the lien principal is paid off along with interest.īillions of tax liens are sold just in Florida and are an important part of municipal governments’ budgets, he says. They are typically auctioned by municipalities, who get cash for handing off the liens. The certificates have super priority liens on properties with unpaid property taxes. One of the lessons many investors learned during the Great Recession is assets that were supposed to be noncorrelated fell just like the other markets.Īlterna came across municipal tax certificates. Konrad’s experience with the state board gave him exposure to different types of asset classes. That meant a quest for assets that might do well when the stock and debt markets weren’t doing so well. When he started Alterna in 2004, Konrad said hedge funds were becoming popular and investors were interested in noncorrelated returns. From 2007 to 2011, he served on the Florida State Board of Administration, which invests and manages assets in the Florida Retirement System Trust Fund. Konrad played for Syracuse University before playing with the Dolphins from 1999 to 2004. In 2014, it created the first AAA-rated multijurisdictional tax lien securitization. Alterna Tax Asset Group, which acquires and manages tax liens from municipalities in 15 states and Washington, D.C.It serves 102 client families and is ranked as the 24th fastest-growing registered investment advisory firm nationally. Socius Family Office, which is an independent multifamily office based in Fort Lauderdale.Alterna Equity Partners, which focuses on private equity in well-established companies that are positioned for growth.Purchasing tax liens gives badly needed cash to governments and breathing space to businesses who haven’t paid their property taxes.Alterna, which manages $1.5 billion, is the owner or majority owner of three companies: The commercial factoring business advances money to businesses based on the receivables of their investment-grade customers, which can greatly help cash flow. Konrad is also famous for a 16-hour ordeal in 2015 when he fell off his 38-foot fishing boat and had to swim 9 miles to reach shore. The company led by CEO Rob Konrad, a former Miami Dolphins fullback/tight end, is gearing up to provide more commercial factoring and purchasing tax liens. Two of Alterna Financial’s business strategies amid the pandemic are offering insight into what’s ahead for our economy. Stephen Garber: People, Passion and Profits.Thought Leadership: Century Risk Advisors.Klein: What are the post-election tax implications? Truth or Fiction? Covid-19 May Cause Impotence.When Boardroom Stress Affects Bedroom Performance.Liquidity Strategies for Growing Businesses.The Healthcare Account Helping Companies Save.Maintaining Steady Cashflow Throughout Business Cyclicality.Three Products that Protect Against Fluctuating Market Rates.Four Questions to Ask Yourself When Thinking About Selling Your Business.Leaving Your Business in Good Hands: A Guide to Selling to Your Employees.Financial Insights | First American Bank.Banking & Finance | Sponsored by Valley Bank.He is a member of the Palm Beach Chapter of YPO (Young Presidents Origination) and is the long time Co-Chairman of Fins Weekend, the major fundraiser for the Miami Dolphins Foundation.
In his free time, Rob enjoys fly fishing and cheering on his girls’ volleyball teams. Raised in North Andover, Massachusetts, Rob now lives in Delray Beach, Florida with his wife and two daughters. In 2009, Rob served as the Chairman of the IAC. He served as a gubernatorial appointee to the Florida State Board of Administration (SBA) Investment Advisory Council (IAC), which provides independent oversight of the Florida Retirement System totaling over $184 billion assets. Konrad serves as the President & CEO of Alterna Financial LLC, a Florida based private investment management firm which is the sole or majority owner of several leading financial services businesses. Socius’s founder and non-executive chairman, Rob played an instrumental role in crafting the firm’s client-focused mission and unique business model.