Friday, September 17, 2010

Pre-auction Letter

John Doe
Street Name
City, State, Zip
Phone Numbers
Email address

Floyd and Marilyn Horn
514 SE 50th Street
Oklahoma City, OK 73129


Dear Floyd and Marilyn,

I am interested in buying several properties in Love County and
according to their official records it shows you own the following property:



Legal Description: Phase 1, Unit 3, Block 8, Lot 2, Falconhead.

Parcel Number: 123-456-210

According to the Love County records it shows that your
property has been delinquent for three years. This is your last chance
to receive any money for your property because your right of redemption
is expiring and it is scheduled to be sold at an auction on May 15, 2008 and
YOU WILL RECEIVE NOTHING.

If you are going to let your property go to tax sale, I am
interested in buying it. I will pay off your delinquent
property taxes and, additionally, pay you Two Hundred Fifty
Dollars ($250.00).


If you want to sell your property, you must do the following:

1. Sign the enclosed deed, transferring title to your property
from you to us before a Notary Public. I will reimburse you
the cost of the notary fee. Send me a receipt and I will reimburse you.

2. Thereafter, send me the deed in the enclosed, self-addressed,
stamped envelope

Upon receipt of your deed, I will have the title to your
property researched to verify that you have a clear title. Upon
such verification, I will send you a check for the $250.00
together with the cost of the notary fee.

If you need to contact me, you can either phone us at (555) 555-
5555, or email us at xxxx@xxx.com. If no one answers the phone,
please leave me your message together with your name, phone
number and the best time for me to call you.

Sincerely yours,

John Doe

P.S. Since I have a limited amount of money to invest and I
am contacting several other Falconhead owners in your same
situation. Please let me know as soon as possible if you want to sell

WHERE TO FIND DEEDS

You will prepare the deed by going to www.vuwriter.com. On the first page Click on “OK”. Look for the word “Forms” in the list on the right side of the page. Then you will see abbreviations for every state in the United States. Pick one of those states and there are several documents for each state, including deeds. These deeds have been prepared by a title company and have everything that the different states require for a deed. Find the quitclaim deed for the desired state and click on the deed. A document will appear and you need to copy the information and paste it into MS Word or another word processor so that you can manipulate the document.

You can also go to www.google.com and search for “quit claim deed (state name)” and find many professionally created “PDF” quit claim deeds that are free to download and use.




HOW TO FILL OUT A QUIT CLAIM DEED



Most Quitclaim Deeds need to be edited. Plus there are 4 areas that need to be included on the Quitclaim Deed.
1. The owner’s name or names: The owner is the seller. So look for the word Grantor as a place to enter his name. It needs to be entered exactly as you find it in the legal documents associated with the propery.
2. Your name or company needs to be entered. Look for the word Grantee or sometimes it may say “Convey to:” that is where you enter your information the way you want it to appear on the Deed. This is one area you can use your LLC or company name.

3. The Legal description will go in an area the may say “described as:” The easiest way to enter this is to copy from the original source and past it in this spot.

4. Somewhere on the form it will usuall say: “For the sum of $10 or $1″ This is where you enter the dollar amount you intend to offer the owner for his property: Two-Hundred Fifty dollars ($250).

Wednesday, September 15, 2010

What You Need to Know

What to Find Out from the Local Tax Authority

The life's blood of your business is your knowledge of how counties work. As you gather information about any one of the nearly 3100 counties (to say nothing of townships in states where counties are not governing entities), you are preparing the soil of the field that is your business. With adequate preparation, you can sow seeds that will create an abundant and reliable harvest in the future. This makes life much easier on you than working as a hunter-gatherer, always hustling to find whatever you can.

Before we can appoach owners of tax delinquent or defaulted properties in a given county, you will want to find out the ground rules for working in that county. Let's keep in mind that the 3000 plus separate counties in the U.S. all operate according to their own policies and procedures. There are similarities in how things are done everywhere you go, but many differences, as well.

When gathering information from government employees, it is important to be respectful and friendly. Their job rarely gives them fulfillment or appreciation, so your appreciation of their help will go a long way. Remember, too, that if one person won’t help, you can find another who will. Generally the higher you go in the hierarchy, the more helpful people tend to become (how do you think they got promoted?).

What is it that you want to know?

It is really quite simple; if you know the answers to the following questions, you now know the county and how it operates. Combine the answers to these questions with a solid rapport with a live human being in the county offices who feels good enough about you to do a few favors for you. Obviously if you already know the answer to a question, you need not ask. If you are working in a state that sells only deeds, you don't have to ask question #2, as written. However, it presents an opportunity for conversation. You could ask, "Now Betty, it's my understanding that there in your county, when you hold an auction, you sell tax deeds. Is that correct?" In fact, the best attitude to take with these questions is that they highlight points of information you wish to know - whether you have to ask or not:


1. Who handles tax liens for the county (Treasurer, Tax Collector, Sheriff, Tax Assessor, Trustee)? In reality, the more exact question would be, "which county agency confiscates tax-delinquent properties and then sells them again." We want to find out who sells the properties at auction because that is who you will have the properties for you to purchase.

The easiest way to find out is to look at the county Web site. However, as a general principle, the more difficult it is for people to discover the information we want, the less competition we expect in the business – obviously most people want to follow the path of least resistance. That means that you should not be afraid of gathering part if not all this information over the phone. On the other hand, the more you can gather online, the less you will have to tax a county employee's patience with telephone questions.

2. Does the county sell tax lien certificates or tax deeds when it has an auction?

3. How many properties per year on the average come to the date of termination of the owner's right of redemption. If the county sells deeds, you simply ask how many properties get auctioned off each year. If the county sells liens, you find out how many liens come to the end of the redemption period unredeemed. The different questions give you the same information: how many deals are available for you with this county each year on the average. If the county typically has one or two such properties a year, it may not be worth your time to continue with that area. If it has 15 - 20 such properties, that may be worthwhile.

4. What is the date of the next auction and how often do they hold an auction?

5. At what point does the property owner lose the right to redeem the property by paying the taxes due? In other words, what is the date of termination of the owner's right of redemption? If this is a county that sells deeds, you want to know how soon after the onset of tax delinquency the property is eligible for auction. In a lien sale situation, find out how long the redemption period runs and exactly when it begins (i.e., at the onset of delinquency or at the time of the sale).

6. What does the county do with the properties that don't sell at an auction? This is a way to find out whether the county has over-the-counter sales available - an alternate way of purchasing properties. Over-the-counter is a generic term for properties that the county owns and wishes to sell. In some areas they are called Negotiated Sales, or Repository Sales, or Surplus Properties, or Struck-Off Sales. The only way to know they are available is to ask.

7. How can I obtain a list of properties that will be available at the next auction. (Will the list appear on a Web site, can they mail it to you, is it published in a local newspaper? What is the procedure for this particular county?) You will eventually want to knowhow to get lists of properties that will reach the date of termination of owner's right of redemption within the next six to eight weeks and get your contact person with that county to send it to you; however, this may not happen on your first contact with this person - the trust and rapport might not be enough for her to feel comfortable with or even wanting to exert herself to do something beyond answering your questions. The article on building rapport elsewhere on this site will give you some tips on how to achieve this.


More information to learn:
These preceding questions comprise the information you want to know to assess a county to see whether to add it to your client list. You also have the information you need to begin your marketing campaign in this county. The following questions will help you with your future dealings with the county, particularly after you have obtained lists of tax delinquent properties from the county. At the beginning, you don't need to ask about these points yet.

8. How can we get a parcel map? This may be in the form of a Web-based GIS map,
or you may have to get them to fax it or mail it to you.

9. Does the county have an excess proceeds policy? This mean that any money
collected in an auction in excess of the amount of the minimum bid on the property
would be available to the previous owner - as long as the owner applies for it. This
can work out as an additional money-making strategy down the road for you.

Take a relaxed attitude when talking to people and use these informational questions as a means of getting to know them a little. We want to keep in mind that familiarity breeds trust, and as you discuss these points with county employees (hopefully the same person each time), you will build rapport and trust so that when time comes to ask for something, such as a list of delinquent properties, they feel comfortable enough with you that they will do as you request.