San Antonio Business Journal Announces entrepreneur Red McCombs buyout of Propel Financial Services LLC
AUSTIN, Texas, (June 12, 2018) – Iconic entrepreneur Red McCombs, founder of Clear Channel Communications and former owner of the San Antonio Spurs, has bought back Propel Financial Services LLC, a company he started more than a decade ago from the Austin-based Prophet Capital Asset Management LP.
Propel was started in 2007 by McCombs and Jack Nelson, an effort to provide Texas property owners tax relief in a state where property tax debt has been skyrocketing. Since the business’ inception, over 50,000 property owners throughout the state have used their services. In 2012, Encore Capital Group purchased Propel for $187 million, according to the Business Journal.
Now, after having spent six years away from the tax services industry, McCombs decision to return was governed by his passion for Texans and his ability to get them out of the cycle of property tax debt. In the last few years, Propel has expanded their services to 23 other states.
With the company’s commitment to core values and consumer peace of mind, Propel has already funded over $600 million in property taxes in 170 counties across Texas.
“This is one of my babies that I intend to grow into a very competitive financial services company,” McCombs told the Business Journal. “I think we can grow the business by 25 percent to 50 percent year over year. … In two to three years, it will be a $100 million business.”
Property Taxes 101: Understanding Your Property Tax Payments
Whether you’re a first-time homeowner or just now beginning your search, it’s important to make sure you fully understand the ins and outs of your property tax payments and what happens if you miss your annual property tax deadline. Bills are mailed by the county towards the end of each year.
For starters, there are two primary methods of paying your property taxes.
1. The first method is called an escrow account, which is typically a bank-managed fund that will add a cost to your monthly mortgage payment. Your mortgage company will save it on your behalf and make the payment on your behalf when it is due.
2. The second method involves managing the payment yourself. This method typically requires you to save money in advance in preparation of payment of the bill.
But if you don’t have an escrow account, how easy is it to save money for your annual payment, and what happens if you end up paying your taxes after the deadline?
1) Fees can add up quickly, so get on top of them fast
For those who don’t have your bank managing an escrow account, your property tax payments are due annually by February 1st — that’s the first deadline to pay attention to.
As soon as your property tax payment is late on February 1st, the taxing authority will charge 7 percent in interest and penalties. In most counties within the state of Texas, that rate increases by 2 percent per month until July 1st, when the taxing authority charges an additional collection fee of 20 percent.
If your property taxes are still delinquent on July 1st, you will have accrued 38 percent in interest, penalties, and fees on your original property tax bill. The penalties don’t stop on July 1st, as the rate will continue to increase each month. By the end of the year, the total interest, penalties, and fees will be 44 percent and that’s just in the first year alone.
Thankfully, retaining a sense of financial independence while also avoiding penalties is fairly simple if you apply for a loan with a well-respected property tax lending company.
2) Getting an estimate on your loan is easier than you think
Many property tax loan specialists (Propel Tax included), have made it easier than ever to qualify for a property tax loan. To qualify, the information you’ll need to provide your property tax loan office is minimal. The information may include:
● First and Last Name of Property Owner(s)
● Property Address
● Mailing Address
● Contact Information (phone number, email, etc.)
● Mortgage Company information (if any)
● Date of Birth
3) Application costs are nonexistent
Property tax loan specialists (including Propel Tax) design monthly payment plans to meet your budget needs, and eliminate out-of-pocket, up-front costs to borrowers. All costs therein are financed so that you pay nothing. Additionally, our closing fees are low, and there are no application fees of any kind.
We understand that no two homeowners are alike, especially within the state of Texas. With that in mind, we take time to consider the entirety of your application and customize a payment plan accordingly. For those in a homestead, if you decide to go in a different direction, you’ll have three days to cancel your application and rescind your documents.
Property tax loans don’t need to be complicated. They just need to get the job done and we can help with that. Have questions on property tax penalty rates within your county? Check out our chart of typical property tax penalties based on an example bill of $10,000 and see how Propel Tax can help.
Don’t like your taxes? Attend local tax rate hearings to object
Propel Financial Services Vice President of Sales and Marketing writes for The Dallas Morning News on how to find and prepare for public hearings on your taxes:
If you own any type of property in Texas, you shouldn’t ignore local tax rate hearings. During those hearings, taxing entities like cities, counties and school districts are deciding whether to adopt a proposed tax rate. And that rate directly affects your property tax bill.
Why Texans Pay High Property Taxes
It’s often said that you don’t have to do anything in life except die and pay taxes, and neither is something that most people really want to do. Since there is no way to avoid either one, it may help you to know what you get for the Tarrant County property taxes that you have to pay each year.
Providing Basic Services
The Real Estate Center at the Texas A&M University reports that more than 50% of collected property taxes provide support for the public education system. Additionally, the city streets and county roads that your customers travel to reach your place of business are built and maintained by your taxes. Your suppliers who haul the goods that you sell use them as well, making it possible for you to have a business and to participate in commerce.
In the event of a fire on your commercial property, you get a direct benefit from the services of the first responders who are paid with your tax dollars, and the police who keep the streets safe are likewise compensated. Maintaining the heavy equipment used in fighting fires, law enforcement vehicles, and stations requires a budget allocation that depends on commercial as well as residential property taxes.
Meeting Financial Obligations
The counties in Texas bear the responsibility of funding public services, providing a motivation for making sure that you pay your commercial property taxes on time. The budget requirements are set after a lengthy period of evaluation and review, and the county expects to receive tax payments so that the work that depends on them can continue.
Meeting your obligation to pay taxes is a burden you are required to carry, but you can get relief imposed by deadlines by applying for a commercial property tax loan at Propel Tax. Call 1-877-324-8445 to talk to a property tax loan specialist to establish your property tax loan eligibility.
Stop the Revenue Drain: How Do Property Tax Loans Work?
While the conventional wisdom is that death and taxes are unavoidable, there are ways to take the sting out of some types of taxes, such as property taxes. There’s good reason that property tax has a reputation as being one of the worst kinds of taxes to pay. Property taxes can be quite confusing to understand and they tend to be extremely expensive for many people—a loathsome combination. And many businesses, both small and large, tend to not factor in high property taxes into their expense estimates, so the bill is not always anticipated.
But high commercial property taxes don’t have to put you out of business. Propel Tax offers commercial property tax loans to help you save money in the long run and protect your business. If you’re looking for assistance with Dallas County property taxes, then Propel can help.
How Commercial Property Tax Loans Work
Using commercial property tax loans can be perfect for companies facing unexpectedly high tax bills because they allow you to pay off what you owe to the government immediately and thereby avoid paying extra county fees, penalties, and overly high interest rates on overdue taxes.
If a large property tax assessment has caught you by surprise, don’t wait and hope that it will simply be adjusted down. Not paying your bill on time will simply result in late fees and penalties, which can compound the cost significantly and drain your revenue over time.
The Advantages of Property Taxes
By addressing the issue early with a property tax loan, you can pay your tax bill on time without feeling the huge financial hit and then pay it off gradually as you have room in your budget. Business property tax loans give you the freedom and flexibility of making your own payment schedule without worrying about accruing large penalties and damaging your business’ credit and reputation.
Get a Property Tax Loan Today
A property tax loan system could help you stay on top of your finances. The predictability and flexibility of such loans makes them a superior source of financing.
Call Propel Tax at 1-877-324-8445 to see how they can work for you.
Money on My Mind: Property Tax Loans Can Save You the Headache
Benjamin Franklin is credited for saying that worry kills more people than work, and that was around 1750. Stress is probably more prevalent today than it was then, but there are better ways to deal with it now. As a resident of Tarrant County with insufficient funds to pay property taxes, you have a viable alternative at Propel Tax, the leading property tax loan specialist in the state. Residential property tax loans provide relief from stress for homeowners in Texas.
Getting an Extension of Time
A residential property tax loan extends the time you need to produce the funds. When you are approved, Propel pays your Tarrant County property taxes directly to the authorities and sends you a receipt. Your payment plan includes taxes, fees, penalties, and interest so that you have no more worries about your tax bill. The relief from stress of worrying about losing your home to foreclosure lets you focus on your job, your family, and other positive aspects of your life.
Stress over a complicated application is unnecessary with the streamlined approach available at Propel. If your property is located in Texas and your tax bill is at least $1,500, you are ready to apply for a loan.
Establishing tax loan eligibility is a matter of completing a few steps to get started:
- Call the Propel office to fill out an application or to request someone to contact you. Other than providing your contact information and some proof of your identity, you need to include the name of your mortgage company if you have one.
- Expect a reply from Propel as soon as your application is complete, often on the same day that you submit it.
- Attend a closing at the office or other location that is convenient for you, and rely on Propel to pay your tax bill within as little as three days.
Property Tax Payment Plan
Propel Tax offers superior customer service that includes a convenient way for you to repay your property tax loan online. Call 1-877-324-8445 to get relief from your tax headache.
Your Commercial Property Tax Loan Solution
Relief from worry about delinquent commercial property taxes is available with a single phone call. Applying for a commercial property tax loan is easier than you may think. Propel Tax, the largest property tax loan company in Texas, offers affordable plans to help you pay your Tarrant County property taxes. Propel beats the rates offered by competitors, and you have no out-of-pocket expenses. Propel does not charge application or processing fees, and there is never a down payment.
The process is streamlined for you to qualify for a commercial property tax loan to pay your taxes. Our commercial tax division is capable of financing your tax bill regardless of size. Our competitive rates give you an edge that saves money when funds are tight. Our streamlined procedure frees up additional cash flow, enabling you to create leverage for your capital. As soon as you take advantage of our program, you start saving money on penalties and interest.
Set aside concerns about a qualifying process that is lengthy or intrusive. The information that we need is basic data that you probably have at your fingertips. As long as the amount you need is more than $1,500 and your property is located in Texas, you have an simple path to qualifying. Here are your property tax loan qualifications:
- information about the borrowing entity such as articles of incorporation or partnership agreements
- corporate tax returns and/or financial statements
- inspection report
- property survey and recent environmental survey
With your call to our office, you initiate the application process. One of our tax specialists returns your call and arranges for the receipt of the qualifying documents. We start processing your application as soon as we receive the basic information, and we often approve applications on the same day that we receive them. On approval, we send payment to the tax office in as little as three days after closing. Call Propel Tax at 1-877-324-8445 today to get started.
Qualifying for a Residential Property Tax Loan
Qualifying for a residential property tax loan is a different process than applying for a credit card. Eligibility requirements at Propel Tax, a leader in Texas property tax loans, include evidence of property ownership and a tax bill of at least $1,500. The application process is uncomplicated and that helps you get your Dallas County property taxes paid as soon as possible.
The pieces of information that you need to provide to our tax specialists will include:
- your name as the owner of record
- the mailing address of your property
- your phone number and email address
- the name of your mortgage company if you have one
- your social security number
- your date of birth
Propel usually prefers to make tax loans on properties that are located in Texas. Our company is led by its founder who studied at Texas schools and practiced law in Austin. His commitment to providing access to the property tax loan process for Texans is deep and long-standing. He is actively involved in the management of all daily operations at Propel.
Balance Due on Residential Property Taxes
Our experience in providing a residential property tax loan to any qualified owner of Texas property helps us set guidelines for recommended loan amounts. We set the minimum at $1,500, which may include any interest, penalties, and fees in addition to your taxes.
Initiating the Qualification Process
We understand that you want to move forward as rapidly as possible. The process includes four steps to complete.
- Complete a telephone application or request one of our representatives to contact you.
- Wait for us to process your account. We are often able to approve an application on the same day we receive it.
- Attend a closing at our office or in the comfort and convenience of your home.
- Enjoy the relief of knowing that your taxes, penalties, interest, and fees are paid.
Call Propel Tax at 877-324-8445 to get started paying your Dallas County property taxes.
Defending the property tax loan industry
This article was originally published by the Houston Chronicle.
By Red McCombs
March 11, 2013
I opened my first car dealership at age 25, and I’ve been blessed over the last 60 years to be part of many more entrepreneurial ventures. One business I’m particularly proud to have helped start is Propel Financial Services, which provides property tax loans to home and business owners in Texas.
In a property tax loan, also known as a tax lien transfer, a property owner authorizes a third-party like Propel to pay his or her property taxes. The property owner may need a little help paying because of a short-term financial difficulty like unexpected medical bills or a child’s college tuition. Propel then pays the full amount due directly to the tax-collecting entity, and the tax lien is transferred to the company. The property owner then works out a flexible payment schedule with Propel.
For example, there’s a couple in Fort Worth who are both school teachers. The husband had three surgeries, and his wife had one, leaving them with a pile of hospital bills. This temporary difficulty made it tough for them to pay their annual property tax obligation, but through a property tax loan, they were able to keep their family in their home and pay off the tax burden in a more manageable timeframe that allowed their bodies and their bank accounts to heal. And there are 15,000 Texans just like them who take advantage of this service each year.
Of course, property tax loans are great for property owners who are able to take advantage of an alternative method of paying their property tax bills, but they’re also great for our local governments, because these transfers result in the instant collection of revenue that funds important public services such as schools and public safety. In fact, $500 million in Texas property tax revenues have been funded through property tax loans in the last three years alone. And the tax assessors also realize property tax loans keep property owners in their homes, which also helps local governments.
There are about 70 other homegrown businesses like Propel around our state that provide property owners with this flexible, affordable solution. But now, some banks and collection law firms want to shut down the industry through legislative changes, such as changing the lien priority of these property tax loans. It may not sound like much, but that one change would effectively kill the entire industry, eliminating this option for Texas property owners and taking those 70 businesses and the jobs they sustain with it.
Why is that? Well, it’s because this industry couldn’t exist without the priority lien position. No one will provide financing for these delinquent property tax loans without it. I never in a thousand years would have funded this business with my hard-earned money without the lien priority. Anyone with a basic understanding of business or credit risk will look at the facts and realize this industry wouldn’t exist without it.
So why do these special interest firms want to take that away? I have no idea, except maybe greed.
We shouldn’t sit back and watch as special interest groups put a bullseye on a valuable industry that’s been an option for property owners for 80 years. And I’m not the only one who feels that way – customers have voiced their opinions, too. Property owners who have worked with Propel have given the company a whopping 98.6 percent satisfaction rating. That’s the highest I’ve ever seen in all my years in business on any product.
This is a service that shouldn’t be shut down by the greed of others. That’s just plain wrong for Texas. I urge our lawmakers to preserve the viability of the property tax loan industry. Let consumers decide who wins and loses in this business.
McCombs is founder of McCombs Enterprises, parent company of Red McCombs‘ auto dealerships and other interests. In 2007, he co-founded Propel Financial Services LLC, which was acquired last year by San Diego-based Encore Capital Group Inc.
The Benefits of a Commercial Property Tax Loan
Business owners often experience an uneven cash flow that makes it difficult to plan for investments. Property taxes that take a significant portion of operating capital can interrupt progress, delay it, or even deter it. Propel Tax has a workable alternative that gets many business owners out of a cash flow problem with a commercial property tax loan. As the leading tax lenders in Texas, we are prepared to help you pay your Tarrant County property taxes.
Stop Demands on Cash Outflow
Property taxes in Texas are higher than in most other states, according to a recent story in the Star Telegram. Penalties on unpaid taxes are extremely high also, making it even more difficult to pay the amount due.
As a business owner, you can get relief from the burden of fees, penalties, and interest that puts your tax bill out of reach. You do not have to deplete your cash accounts with a lump sum payment. Propel offers a much easier alternative way to pay your taxes.
Advantages of Working Capital
Businesses often depend on a cash influx at the end the year to put the books in order and to make a profit for the year. Taxes that are due in the first part of the year can decimate your cash accounts severely. As a result, your plans to expand your business with another location or to build a larger plant have to take a backseat to paying your Tarrant County property taxes. However, your financial picture improves when you can leverage your capital with a commercial property tax loan.
Application for a Property Tax Loan
Propel Tax serves the Texas business community with integrity to assist owners who need help in meeting financial obligations. We pay your taxes directly to your county’s taxing authority, and we set up a financing program that suits your needs.
Property tax loan qualifications require this information about your property:
- articles of incorporation, partnership agreements, or other documents about the borrowing entity
- corporate tax returns and/or financial statements
- inspection report
- property survey and recent environmental survey
Call Propel Tax at 1-877-324-8445 to avoid possible further county penalties, interest, or possible liens on your commercial property taxes. We can approve your property tax loan and pay off your debt in as little as four days after you complete your application.