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Aside from two years of typing one of the most valuable courses that I ever took was a course called "logic."
 

I can think of no other business where the ability to utilize a little "reason, logic, and common sense" is so important as the tax forfeited lands business.
 

Let me illustrate with a few examples:
 

First let's assume you have decided to invest your money in high yielding government issued tax lien certificates. You can decide on one of two main objectives. One is to invest in tax lien certificates to receive the greatest possible annualized yield on your investment. Two would be investing in tax lien certificates with the objective of acquiring a deed to the property. First, let's assume you have chosen No. One Your objective is to invest in tax lien certificates to receive the greatest amount of return on your investment.
 

You would then want to invest only in tax lien certificates where the chances are the greatest that the delinquent property owner will redeem. You have your choice of investing in certificates representing tax liens on the following types of properties: Which would you choice in order to have the best opportunity of achieving your objective?
 

1. Single family occupied residence with large mortgages.
2. Single family residences with no mortgages on them.
3. Occupied commercial buildings being used for business purposes.
4. Small one acre to five-acre tracts outside the city limits.
5. Residential lots in developing subdivisions with nice homes.
6. Residential lots inside the city limits in the older part of town.

I would estimate that almost 99% to 100% of occupied single-family homes with large mortgages would be redeemed. Just ask yourself the question how many homeowners will forfeit their occupied home for non-payment of taxes. Then ask yourself the question how many mortgage companies would allow the property to be forfeited for non-payment of taxes.

Whereas, a very small percentage of the residential lots inside the city of limits of most towns will not be redeemed. Just look around in the neighborhoods where most of these types of properties are located. How much new construction do you see in the area? Are there any new homes being built in the area.

One more choice:

Which of the following states would you choose to invest in tax lien certificates?

1. Illinois: 18% penalty per six-month period. 3-year redemption period.
2. Iowa - 2% interest per month.

4. Missouri -10% simple interest - 3-year redemption period.
5. Oklahoma - 8% simple interest - 2-year redemption period.

First I obtain a list of all the delinquent properties on which a tax lien certificate will be offered for sale if the property is not redeemed.

I then purge that list down until the following criteria are met:

1. The delinquent property owner live in another state.
2. The property has an assessed Fair Market Value of at least $10,000.
3. The property has an assessed Fair Market Value of not more than $100,000.

Here is what happens.

1. I may get a one to two percent positive response back and I follow through by sending a quit claim deed along with a money order in the amount of what I offered for signatures.

2. I will receive a pile of undeliverable letters returned to send for various reasons such as FOE (Forwarding order Expired), Deceased, Moved Left No Forwarding Address, and Not Known at this address.

1. I will receive no response to my letter.

By using the letter writing technique, I have already accomplished my objective with those who agree to give me a deed for a small consideration. And, I have accomplished my objective without having to compete at the tax lien certificate sale.
 
 

Let's move on to what I consider one of the most exciting aspects of this business, TAX FORFEITED LAND SALES. I am referring to sales where the high bidder actually receives a deed to the property.

I would hope that your motivation in attending such sales is the same as mine - PROFIT! Shall we apply a little "reason, logic and common sense" as to how to best assure ourselves as big of a profit as possible and in the shortest possible time.

Here again let's assume there are 40 to 50 properties being offered at the tax sale. Let's examine a couple of your possible choices.
 

1. A one acre lot in a nice subdivision located at the end of a street in a Cul-de-sac.
2. A one acre lot in a nice subdivision but located on the busiest street in the subdivision.

Let's examine another situation: You have the following choices:

1. A two acre residential tact in a good location with a minimum bid of $5,000.
2. A two acre commercial tract in a good location with a minimum bid of $10,000.

This one is easy for me. I have found over the years that there are at least 20 to 30 times as many buyers for residential property as there is for commercial property. Second, it is very easy to sell a two-acre tract in the country to young couples who want a little acreage to build a home or on which to place a mobile home. I offer these properties for very small down payments and easy monthly payments. They are very easy to sell and the buyers are grateful to obtain owner financing.

The list can go on and on. I just used a little "reason, logic and common sense" on the last offer which I made for a struck off property in my county. There were two lots now owned by the County and an Independent School district both located in the same but well developed subdivision with many homes in the $150,000 to $250,000 classification. Both have wells and septic tanks already on them. Both are a little less than two acres each. One is vacant. The other had all kinds of junk on it including an old concession trailer, a metal building that needs to be removed, and an old unlivable house. I figure I could get my bid accepted on either one for around $2250.00. I chose the one without the clean up problem and made an offer of $2255.00. I just received an email from the county that my offer has been accepted. That property can easily be sold for $25,0000 to $30,000. Not that the other one is also not a good buy even with the expense of having to clean it up. But, there are so many bargains available why buy any problems. Just take a little more time and find properties that are easy to sell and without problems. And, NEVER, NEVER get excited and over pay for a property. There will be more bargains at the next sale.

I sincerely hope this will be of help to you.
 
 

Here is an outstanding opportunity for many of our customers to barter many of the properties they have acquired using our techniques. Those Arkansas, California, Florida, New York, Texas, Oklahoma, Kansas, and other properties will are prized highly at these barter sessions. You can trade for vacations, autos, gemstones, artwork, motel, restaurant, medical, and all kinds of script that will save you a lot of money. Here is the place to get full fair market value in something you need for your properties.

The sessions is to be held in almost every state by our good friend "Spud Barrett". Spud can even get you script to take care of your motel room and there are many restaurants in the OKC area that will take the script. You will meet traders from all over the U.S. at this session and form some very valuable and lasting contacts to dispose of your properties. Bring all the back up material you can on your properties with photos, assessment records, and whatever will help others to understand what you have.

You can contact "Spud" for further information at barex@aol.com

Send him an email today and he will send you the complete details.