NEWSLETTER –
COURTESY OF TAX RESEARCH FOUNDATION

DISCLAIMER

MOTIVATIONS FOR THIS WEEK

 GOALS
 If you have a great ambition,
 take as big a step as possible
 in the direction of fulfilling it.
 The step may only be a tiny one,
 but trust that it may be
 the largest one possible for now.
 

FUN AND PROFITS IN TAX FORFEITED LANDS

Roy, wanted me to wish you all a Happy New year and a very prosperous one.

WANT TO START ON A SHOE STRING?

I  receive so many comments indicating that many who would like to get started   in this business think they need a lot of money.   One of the purposes of this News Letter is to dispel some of those fears.  I got started with just $25.00 back 41 years ago.  You may need a little more than that today.  However, here are some ideas on getting started on a limited budget.

The first item you will need is a Fun and Profits in Tax Forfeited Lands Manual for the state in which you live.  You can have that in the next few minutes just by going to http://www.taxsales.com and clicking on ORDER NOW.  All orders are filled as attachments to emails or on diskettes/CD-Rom.

Here is what I suggest that you do after you get the manual.

Sit down with a notebook and pencil.  Start reading the manual from beginning to end.  You need to learn exactly how your state operates regarding the collection of taxes and the sale of property for non-payment of taxes.  Read the manual over and over until you have the procedure straight in your mind.

Look for and make notes on the following:

When does a piece of property become delinquent?

What public official is responsible for the collection of taxes?

When must that official advertise properties that are delinquent for non-payment of taxes?

How long is the property delinquent before it becomes subject to being sold for non-payment of taxes?

Are tax lien certificates sold or does the official actually sell the property and the high bidder gets a deed and possession of the property?

Is there a minimum bid required at the sale?  What is that minimum bid?

What happens to property not sold at a tax sale?

How can you invest in property not sold at the sale?

Where are the records of delinquent property owners maintained?  Are they maintained in more than one office?

Where are the records of property acquired by the county for non-payment of taxes?

What are your rights under the public records statutes of your state?  How much can a public official legally charge you for photocopies of records maintained in a digital format?

What are your rights regarding inspection and copying of the public records regarding delinquent properties.

So far you only have $79.00 and some time invested.  What do you do next?

Now, it is time to visit the courthouse.  You know exactly what public records you want to see.

Take a good look at the delinquent tax rolls or the "Book on Delinquent Taxes" or what ever they call it in your state.  Pay particular attention to the information contained in that book.  Does it have the name and address of the delinquent property owner?  Does it have a situs (physical) address of the property?  Does it have a legal description of the property?  Does it show the amount of taxes due?  Does it show when the property became delinquent?  Does it have any indication of assessed values?

Check the tax assessment rolls and see how properties are listed in that public record.

Take a quick look in the office of the country recorded.  If you own a property in the county or know someone who does ask one of the clerks how to locate a record on that property.  You will learn a lot.

When you visit the office of the public official who has the responsibility of conducting the tax sales determine in what newspaper those legal notices are publish.  Write down the name of the newspaper. Try to determine when the legal notice for the last tax sales was published.  Go to the newspaper and get a copy of the last published legal notice (This may cost you as much as $1.00).

Now you have $40.00 invested.  What do you do next to get started?

Here is what I would to if I were short on funds.

I would re-visit the courthouse and go directly to the record showing all properties delinquent for non-payment of taxes.  Take along a legal pad or spiral binder that you can use for taking notes.

I would write down the names and addresses of at least 100 delinquent property owners.  I would write down the legal descriptions of each of the properties, the date of delinquency and the amount of taxes due.

Then, I would  take that list to the office of the tax assessor or county appraiser and look up the assessed values of the land and the assessed values of the improvements on each property.  This only requires two entries.  I use the letters LV for "Land Value" and  IMP for "Improved Value."

You still only have $40.00 invested (maybe another $1.00 or $2.00 for the notepad).  But, you have learned a lot.  Now you have several choices as to how to proceed from this point.

If you are very limited in funds (the assumption of this News Letter) and have a telephone, here is what you can do.  First look up the phone number of all of the people living in your local toll free dialing area.  Pick up the phone and call them.

Just tell them that you are calling them about their property (give them the address if you have it).  Tell them that you are investing in property delinquent for non-payment of taxes.  That you would be interested in their property for a token payment if they have not yet redeemed the property and only if they have no intention of redeeming it.  Offer them $100 for a quit claim deed after you explain to them how they may be able to sell you the property for a token (small payment) and take a tax deductible loss on their next income tax return.  You should familiarize yourself with the Article from the "Arizona Republic" and the article on 'CAPITAL LOSSES STILL DEDUCTIBLE" both in the manual you purchased.

If you do not  know how to fill out a quitclaim deed, just re-visit the courthouse.  Go to the Office of the Recorded of deeds.  There will literally hundreds of quit claim deeds recorded over the years.  Just make notes on how they are done.  You do not need any fancy form.  What you need is the wording and it is the same in almost all quitclaim deed forms.  You might even spend another buck and get a photocopy of one.

When you get a property owner who agrees to give you a deed for $100 you  simply fill out the deed (if you need help on the first one or two a local attorney or a para-legal should not charge you too much to do it for you), you take the deed along with your $100 bill to the property owner.  Take the owners to a notary public, get their signatures notarized, and give them the $100.00.

Take the deed to the country recorded and have it recorded.  This may cost you another $10 or so.  Now you have a little less than $150 invested.

If you have a computer and a few extra bucks, you can put the names and addresses you gathered into a database and mail merge one of the suggested form letters in the manual to each of the delinquent property owners. Be sure to make photo copies of the articles in the manual (The Arizona Republic Article and the 'CAPITAL LOSSES STILL DEDUCTIBLE" article and enclose them with your letter.

The costs of sending out 100 letters first class including postage, envelops, and copying should not exceed $50.00 - $100.00.

If you have a little more money and want to attend the tax sale when it comes up, you are way ahead of the game.  You already have a lot of information.  You probably have already driven by most of the properties in your county.  Decide which ones you can afford and the most that you will bid.   I set a maxim mum that I will bid at 10% or less of what I consider the FMV.

I hope this helps some to get started in this fun and exciting business.  It is getting better every year.  There are more properties being sold for non-payment of taxes than ever before.  Riverside and San Bernardino counties in California are offering over 1000 properties at most of their tax sales.  I just obtained a list on a CD-ROM from a  county, Florida, with over 50,000 delinquencies listed.  Most Texas Counties have a tax sale on the first Tuesday of every month.  Some of the counties are offering over 100 properties at each sale.  New Mexico has sales in one or more counties practically on a weekly basis.  Arkansas will be offering over 10,000 properties for sale this year.  The potential and the opportunities are limited only by your imagination, time, and money.

I hope this helps making your investing more enjoyable and more profitable.

FORWARD THIS NEWSLETTER TO A FRIEND.
Do a friend a favor and forward this newsletter to them.

FUN AND PROFITS IN TAX FORFEITED LANDS MANUAL ONLY $25.00.

TAX SALES

New York NYS Auctions

My reason for making this information easily accessible to you is to demonstrate the tremendous amount of opportunities in this business both by vesting in tax lien certificates and acquiring properties at public auction sales.  Even if you cannot if you cannot attend either of these sales just looking at the tremendous numbers of properties being offered should give you a good idea as to the unlimited opportunities available.

Most counties in Texas will have huge sales on first Tuesday of August.  Think about all the other states and their tax sales.
 

I hope this helps making your investing more enjoyable and more profitable.

ONLY THOSE WHO DARE TRULY LIVE!

Tax Research Foundation
P.O. Box 96615
Houston, Tx 77213-6615

You may call in your ORDER ONLY at 713-671-0110
between the hours of 8AM - 9PM Central time.
Or fax in your order at-713-671-0740

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