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The Tax Lien Goldmine Ultimate Step by Step Tax Lien & Tax Deed Investing : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com The Tax Lien Goldmine Ultimate Step by Step Tax Lien & Tax Deed Investing Fairfield County Real Estate Investors Association

HOW TO GET DEALS for $100 and sell them QUICKLY for $5k-$10k in less than 60 days : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com HOW TO GET DEALS for $100 and sell them QUICKLY for $5k-$10k in less than 60 days Strictly the facts, ma’am! Largest downturn in real estate history You need a system that doesn’t allow you to take on debt, tenants, or maintenance! You never lose when you buy for pennies and sell for THOUSANDS or TENS of THOUSANDS!

What You Will Learn Today : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com How to BUY LAND … 75%-95% below market value or FREE! With virtually NO COMPETITION Free & clear with NO MORTGAGE And sell it within days FOR PROFIT a B-I-G FAT JUICY CHECK!! Cha-Ching!! BUY LAND without having to borrow money from the bank Pick the BEST AREAS to buy, in today’s market What You Will Learn Today

Who The Heck Is C. L. Jones? : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com LAND is my specialty! I have been investing fulltime since 2006! I started out where you are I retired from the rat race I actively negotiate deals daily I am President of Fairfield County REIA I an Co-owner of Liedle’s Caterers AND I am a Marine Corps veteran Who The Heck Is C. L. Jones?

EVERYBODY has a story! : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com EVERYBODY has a story! I barely made it out of high school I bounced around from crappy jobs I worked 80-100 hrs/wk after getting out of the military I realized there’s no such thing as “job security” I had no money saved at age 30 I always wanted to start my own business I didn’t have a system to follow

EVERYBODY has a story! cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com EVERYBODY has a story! cont. My friends didn’t have any $$ saved I always had an entrepreneurial spirit But I didn’t recognize my purpose I sold everything from jeans to sunglasses! I invested tens of thousands of $$$ in ME AND THEN … I realized I needed a PLAN if I was going to generate passive business income …

My Piece of the Dream & My Goals : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com My Piece of the Dream & My Goals Help a boatload of people Make a boatload of $$$$ -- *CHA-CHING! 3. I want to take 30 days off ALL AT ONCE! 4. I want to make my business run on a system 5. I don’t want to work 70hrs/wk at a business 6. *** Create PASSIVE BUSINESS INCOME! Imagine going on vacation, and having more $$$$ in your account when you return than when you left!

The Best Advice I Ever Got … : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com The Best Advice I Ever Got … “Only listen to SUCCESSFUL people” “IF YOU WANT TO MAKE A BOATLOAD OF MONEY - Pick a profitable niche!” “Get a Mentor” “Set up your system – put it in place – and get out of the way of it …” “Put your business on auto pilot and GO-GO-GO!”

Vital Statistics : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Vital Statistics The difference between someone filing bankruptcy or not is: $200-$500 dollars a month! Passive Income gives you financial freedom to make choices that can enhance your family’s quality of life.

Achieve FREEDOM! : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Achieve FREEDOM!

What Does FREEDOM Bring You? : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com What Does FREEDOM Bring You? Clarity Choices Passive business income

How Are You Going To Achieve FREEDOM? : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com How Are You Going To Achieve FREEDOM? Set SMART Goals !! Be prepared to make the proper adjustments to your SMART goals to keep them on track.  Otherwise, your [unadjusted] goal simply becomes a dream.

What Are SMART Goals? : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com What Are SMART Goals? They are … S = Specific M = Measurable A = Attainable R = Realistic T = Timely

Build Your DREAM TEAM … : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Build Your DREAM TEAM … No investor is an island unto himself.

Who Are Your “Pocket Investors”? : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Who Are Your “Pocket Investors”? Any investor that trusts you to find them good investment opportunities, and is willing to put their money in your hands for a guaranteed minimum return.

Structuring Your Business : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Structuring Your Business A Corporation is a business that is granted a charter recognizing it as a separate legal entity having its own rights, privileges, and liabilities distinct from those of its members.

Structuring Your Business cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Structuring Your Business cont. An LLC is a business structured so its owners are not personally liable for debts or other business liabilities such as damages from lawsuits, and they are taxed similarly to partnerships, thus avoiding double taxation.

If you do nothing else when you start a business … : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com If you do nothing else when you start a business … PREPARE a Business Plan that: defines your goals, measures your success, and details the actions you must take to succeed

Real Estate Investing : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Real Estate Investing NOT ALL INVESTING is created equal Most niches require: - Credit (a score of 700 or better) - Cash for a down payment (remember - 30% down payment!) - Taking out a mortgage to fund your investment (don’t take on HUGE mortgages when you don’t have to)

Real Estate Investing cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Real Estate Investing cont. The Real Estate Investing niche - is very safe, - low risk, and - it works in ANY market!

Investment Techniques : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Investment Techniques

Land Profit System : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Land Profit System What if a world existed that doesn’t require Banks Partners Big Mortgages Co-signers Credit checks

And what if … : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com And what if … I could show you a system that allows you to buy land for hundreds & sell for thousands in less than 60 days? Would that make a difference in your life??

How Is This System Different? : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com How Is This System Different? Owners give up on properties Owners don’t want properties anymore Owners don’t want to put another dime into property Owners just want to get rid of the property Owners are willing to walk away from it for NOTHING!

Real Estate Investing: Why Land? : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Real Estate Investing: Why Land? Land generates cash flow Lower risk - Minimum upkeep & maintenance - Cannot be stolen or destroyed - No tenants, toilets, or termites! Minimum competition Sells fast for maximum profit

Real Estate Investing: Why Land? cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Real Estate Investing: Why Land? cont. Owned free & clear Average price range = $5k-$30k More land than houses Huge buyers pool (eBay, bid4assets.com) Can’t build houses without the land! God isn’t making any more land! (SUPPLY & DEMAND)

Why Don’t People Invest in LAND? : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Why Don’t People Invest in LAND? They think: it doesn’t generate cash flow = ERROR #1 land is associated with the ultra wealthy … = ERROR #2 people don’t know how cheap they can get it. = ERROR #3

Investing in Tax Delinquent Property (Traditional Liens & Auctions) : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Investing in Tax Delinquent Property (Traditional Liens & Auctions) Advantages Low startup capital $$$ (buy with as little as $1000!) You can invest from home Its easy to outsource

Investing in Tax Delinquent Property (Traditional Liens & Auctions) : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Investing in Tax Delinquent Property (Traditional Liens & Auctions) Disadvantages Too much competition (thousands of investors) Too difficult to obtain title insurance (must file for quiet title) It could be years before the property or lien sold

Investing inTax Delinquent Property (Traditional Liens & Auctions) : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Investing inTax Delinquent Property (Traditional Liens & Auctions) Disadvantages cont. Most properties are redeemed prior to auction Liens allow you to make $$$ - but not immediately! Owners manage to sell or redeem

Pssst…Want to know a secret? : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Pssst…Want to know a secret? -- Very few people know about this system -- Even less are doing IT -- The people who are doing it are making a KILLING! -- It goes on every day regardless if you decide to join us or not!

Smart Investors DON’T WAIT! : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Smart Investors DON’T WAIT!

Smart Investors DON’T WAIT! cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Smart Investors DON’T WAIT! cont. California has a 5-year period before the property goes to a tax sale That means if an owner stops paying taxes in 2009, it goes to sale in 2015… Then you have to compete with other investors at auction! What if the SAVVY INVESTOR could find the property owners 1-2 months after it becomes delinquent, or before they stop paying the property taxes? See how you can change the game?

CL’s Blueprint For Firing Your Boss! : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com CL’s Blueprint For Firing Your Boss! Here is your passive business income model to help you Leave Your Job!! EXAMPLE: Property Value = $15k Buy land for $1,000 Sell for $6,000 >> Profit = $5,000

CL’s Blueprint For Firing Your Boss! cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com CL’s Blueprint For Firing Your Boss! cont. Take the $5,000 and buy 5 more properties. Cost = $5000 (5 x $1000 Sell each lot for $6,000 = $30,000 (5 x $6000= $30,000) Simply repeat this process over & over until your income meets your expenses for 1 year. Then you have a life decision to make!

Slide 36: 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Tax Liens 101

Tax Lien Theory : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Tax Lien Theory A tax lien is a claim imposed on property by a taxing authority, such as local (county), state or federal government, to secure payment of delinquent taxes. When tax liens are imposed, the government seizes control of the property until taxes are paid. What happens to these properties?

Tax Liens 101 cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Tax Liens 101 cont. A tax lien certificate is a lien against real property that earns interest at a relatively high annual interest rate. The tax lien certificates are sold at auction in the county in which the unpaid taxes are owed for the calculated tax amount.

Determining Taxes : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Determining Taxes Every parcel of property is assessed.   Property tax is determined according to:   the property's taxable assessment and   the tax rates of the taxing jurisdiction where the property is located.

Determining Tax Assessment : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Determining Tax Assessment The tax assessment is determined by the assessor, using the fair market value based on sales of “comparable properties,” an assessment percentage, and mil rate. COMPUTE according to: 1. The property’s “fair market value,” determined by recent sales activity for “comparable properties”.   2.  Fair market value X 70% = the “tax assessment”.   3. The tax assessment X the “mil rate” (1 mil = .001) = the annual property taxes

Determining Tax AssessmentEXAMPLE: : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Determining Tax AssessmentEXAMPLE: A property has a fair market value of $300,000, in a county/town where the mil rate is 27.5.   1. $300,000 x 70% = $210,000 (assessment)   2. 27.5 = .0275 1000   3. $210,000 x .0275 = $5,775.00 (annual taxes)

Property Tax Liens : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Property Tax Liens Mechanics Liens - the most common type of lien; If a contractor provides repairs, new construction or upgrade, or other such service, and cannot collect payment, the contractor may file for a mechanics lien and attach it to the property. Mortgage Liens - a financial liability put against a property by a bank or lender for borrowed funds owed, secured by the property.

Property Tax Liens cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Property Tax Liens cont. IRS Liens - When the owner of the property does not pay his/her income taxes, the federal government (IRS) may impose a lien against the individual’s property until the taxes, plus interest, are paid. When the owner of the property does not pay his/her income taxes, the federal government (IRS) may impose a lien against the individual’s property until the taxes, plus interest, are paid.

Lien Priority : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Lien Priority Property taxes get paid first regardless when the amount in arrears was recorded. FOR EXAMPLE … PRIORITY DICTATES THE FOLLOWING BE PAID IN ORDER: 1) Property Taxes - $2,900   2) 1st Mortgage - $10,000 in arrears on $350,000, recorded 12/25/2006 3) 2nd Mortgage (home improvement) - $25,000 in arrears on $35,000, recorded 2/21/2007 4) Judgment - $2,050, recorded, 2/5/2008 5) State Income Tax - $2,500, recorded 5/5/2008   6) IRS Income Tax - $5,400

Tax Lien Certificates : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Tax Lien Certificates The Tax Lien Certificate serves as proof of purchase but … it does not guarantee your immediate ownership, or that you have the right to sell the property, yet. You must wait a period of time specified by your state, called a Redemption Period, to give the property owner time to pay his/her tax obligation. The redemption period varies from state-to-state.

Finding Tax Liens : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Finding Tax Liens A list of all real estate properties with delinquent taxes is typically advertised at a specified time determined by the local agency The advertisement includes a “short legal description” Look it up on the taxing authority’s web site Convert it to a full legal description

Finding Tax Liens cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Finding Tax Liens cont. THE LEGAL DESCRIPTION Western U.S. lands use the Rectangular Survey System (a block grid survey system) Legal Description: “The W ½ of the SE ¼ of Section 22, Township 34,Range 1 W. of the Willamette Meridian.” OR “Lot 12, Hidden Valley Estates”

Finding Tax Liens cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Finding Tax Liens cont. THE LEGAL DESCRIPTION Eastern U.S. & Texas lands are not neatly gridded! Find out about the property and eventually access a view of it using: the property address,   the legal description,   its parcel number, or   a general physical description (i.e.: “Lot 12, Hidden Valley states”)

Buying Tax Liens : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Buying Tax Liens Five Basic Steps in buying tax liens Obtain a list of properties Do a site visit & research online Create choices; Research many properties in the area you are interested in Become familiar with your local County Tax Assessor’s office & personnel Investigate companies like the Tax Lien Superstore who buy tax certificates in bulk

Buying Tax Liens cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Buying Tax Liens cont. Advantages of Buying Tax Liens --- low risk --- good chances of a high return   --- better return rates than other investments   --- little cash outlay   --- potential to own the property (if it isn’t redeemed)   --- little competition   --- works in any market   --- not dependent on outside forces (bank loans, for example)

Buying Tax Liens cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Buying Tax Liens cont. Disadvantages of Buying Tax Liens *The Redemption Period* Each state has a required period after buying the Tax Lien Certificate before they will award property ownership.

Tax Lien Auctions : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Tax Lien Auctions #1 - Develop Your Exit Strategy! WHAT’S YOUR GOAL? To Make Money? To Invest for the Future?

Tax Lien Auctions:Pre-Auction Activities : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Tax Lien Auctions:Pre-Auction Activities Select a County or investment area Register as a bidder When is the next Auction? Check date, time, process, money Be put on the County’s mailing list Get the published property list Get all the addresses for all the properties on the TLC sale list Get property owner’s addresses; were County letters returned “Undeliverable?”

Tax Lien Auctions:Pre-Auction Activities cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Tax Lien Auctions:Pre-Auction Activities cont. Determine the property’s value based on your exit strategy Do you want to maximize interest or obtain “real property?” Check for IRS and state tax liens Check zoning and environmental issues Acquire and check the plat maps for property shape and dimensions Make a “Tour Plan” of all your properties Take notes & pictures – LOTS & LOTS of pictures - on your site visits Purge and prioritize your properties

Tax Lien Auctions:The Auction Process : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Tax Lien Auctions:The Auction Process Bidding Strategies Bring REAL MONEY – no credit cards! Register in advance Sit UP FRONT! Don’t be shy! Bring friends & bid on properties as a group Bid CONSISTENTLY! Save a little money for the end – you never know what bargain may pop up!

Tax Lien Auctions:The Auction Process cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Tax Lien Auctions:The Auction Process cont. Bidding Methods Premium Bidding Percentage Bid-Down and Rotational Bidding Each state has their preferred bid method.

Post-Auction: Buying Tax Liens Over the Counter : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Post-Auction: Buying Tax Liens Over the Counter You can access the book of tax lien certificates that did not sell at auction from the County -- Purchase tax lien certificates without competition -- Get the full percentage (as much as 50%) on your money -- Purchase them by mail -- Works particularly well in rural areas

Post Auction: cont.Buying Tax Liens from the TLC Holder : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Post Auction: cont.Buying Tax Liens from the TLC Holder You can buy tax liens from current tax lien certificate holders who may want to “cash out.” -- Most states permit tax liens to be sold on a secondary market -- Ask the tax lien certificate owner, not the property owner, if they are interested in selling their tax lien -- TLC investors are not interested in the property, only the interest!

Post Auction: cont.Buying Seasoned Tax Lien Certificates and Foreclosures : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Post Auction: cont.Buying Seasoned Tax Lien Certificates and Foreclosures You can buy tax liens that have run out their redemption periods -- Look through the County’s list of over the counter tax lien certificates -- Purchase them and file for foreclosure immediately -- It’s the easiest way to obtain property for pennies!

Tax Lien Holder’s Rights : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Tax Lien Holder’s Rights The tax lien investor has a right to … collect a high interest rate (generating extra income)   be considered a “high priority lien holder”   bring the property to foreclosure after the redemption period expires

Slide 61: 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Tax Deed Investments

Tax Deed Investments : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Tax Deed Investments A treasurer’s deed is the document that passes ownership from one person to another free & clear. An absolute deed also transfers unrestricted title. Tax deed investments are actual properties, not liens against properties, the County sells for the amount of the delinquent taxes owed on it.

Tax Deed Investments cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Tax Deed Investments cont. Advantages of Buying Tax Deeds --- ability to purchase them at huge discounts   --- immediate property rights   --- the right of possession   --- the right to use the property,   --- having equity rights   --- easily resold, and --- nearly all liens are wiped out

Tax Deed Investments cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Tax Deed Investments cont. Disadvantages of Buying Tax Deeds --- hidden conditions: distressed property condemnation unsafe structure slated for demolition   --- immediate cash needed   --- pre-registration and a non-refundable security deposit for online auction sales ---redemption periods --- the time it takes to obtain property ownership

Tax Deed Investments cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Tax Deed Investments cont. A MAJOR Disadvantage Of Tax Deeds … *The ABSENCE of an INSURABLE TITLE*

Tax Deed Investments cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Tax Deed Investments cont. How to resolve not having an insurable title: have the title company exclude the previous owners from the insurance policy offer the owner payment for signing a quitclaim deed with a quiet title suit

Types of Tax Deed Sales : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Types of Tax Deed Sales Where the property passes from 1.  the original owner to new owner, by auction, where state just acts like a broker 2.  the original owner to the State (through foreclosure) then to new owner by auction

Purchasing With the Right of Redemption : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Purchasing With the Right of Redemption The “right of redemption” permits an owner or party with a legal interest in a property to get the property [back] after the sale. Redemption prices may be less than the property’s fair market value The redemption price is calculated using a statutory formula = less than the pre-foreclosed debt Purchasing property after foreclosure is effective if the redemption period extends beyond the foreclosure sale

Types of Deeds : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Types of Deeds Warranty Deeds state that the described property is “free and clear” and any defect will be corrected/fixed Special Warranty Deeds state that the described property is free and clear and any defect will be corrected/fixed by the owner only if it occurred during that period of ownership Quitclaim deeds are typically used to pass ownership from one family member to another Bargain and Sale Deeds are generally used to convey distressed or foreclosed properties

Tax Deed Auctions : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Tax Deed Auctions Tax deeds are a “cash business” ONLINE AUCTION Bidders are required to … pre-register and submit a high, non-refundable security deposit ($1,500 - $5,000)

Tax Deed Auctions: Pre-Auction Activities : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Tax Deed Auctions: Pre-Auction Activities Select a County or investment area Register as a bidder & become familiar with the bidding process Research how online auctions work (if you will participate that way) Line up available cash Get the published property list & select properties you’re interested in Get all the addresses for all the properties Get property owner’s addresses; were County letters returned “Undeliverable?”

Tax Deed Auctions: cont. Pre-Auction Activities : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Tax Deed Auctions: cont. Pre-Auction Activities Check for zoning and environmental issues Evaluate your properties Research records for IRS and state tax liens (most will be set aside) Acquire and check the plat maps for property shape and dimensions Make a “Tour Plan” of all your properties Take notes & pictures – LOTS & LOTS of pictures - on your site visits Purge and prioritize properties

Tax Deed Auctions:Attending the Auction : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Tax Deed Auctions:Attending the Auction Bidding Strategies Premium Bidding (HIGH BID) Sealed bid

Post-Auction Activities : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Post-Auction Activities PAY FOR YOUR WINNING BIDS! -- cash,   -- cashier’s check,   -- certified bank check, or   -- money order Record your deed   Obtain title insurance if appropriate, and   Begin marketing the property (if that’s your exit strategy)

Post-Auction Activities:Marketing Your Property : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Post-Auction Activities:Marketing Your Property So, where do you find these buyers? -- Contact the neighbors   -- Your “pocket investors” -- Your local REIA (Real estate Investors Association)   -- eBay and Bid4Assets.com   -- Craigslist and Loopnet   -- Newspaper ads and Association newsletters   -- List the properties with a Realtor

Slide 76: 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Funding Your Investments

Funding Sources : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Funding Sources Hard money (COLD, HARD CASH!) Equity line of credit Savings account Credit cards (caution - many auctions are “cash only”) Become a “bird dog,” for quick, easy money Assign tax liens that you currently own from pervious auctions Partnerships Self-directed IRAs (401(k))

Funding Your Investment:“Quick Funding” : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Funding Your Investment:“Quick Funding” Before you think you can’t “do it,” consider this …  ”You can invest in almost anything with a truly self-directed IRA, including tax lien and tax deed properties.” Create Tax-Free Profit and Large Tax Deductions

Funding With Your Self-Directed IRA : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Funding With Your Self-Directed IRA A truly self-directed IRA custodian (such as Equity Trust @ www.TrustETC.com) allows stocks, bonds, mutual funds, and CDs in addition to real estate, notes, private placements, tax lien certificates, etc. There are 8 custodians nationwide that provide self-directed investments Either a Traditional IRA or a Roth IRA may be converted to self-directed funding

Funding With Your Self-Directed IRA cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Funding With Your Self-Directed IRA cont. Benefits of Self-Direct IRAs: The usual tremendous IRA benefits: tax-free profits tax deductions asset protection and estate planning PLUS you may invest tax-free in investments that you know and understand with compounding interest!

Funding With Your Self-Directed IRA cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Funding With Your Self-Directed IRA cont. Allowable Investments Using Self-Direct IRAs: -- Residential real estate, including apartments, single family homes, and duplexes -- Commercial real estate -- Undeveloped or raw land -- Real estate notes (mortgages and deeds of trusts) -- Promissory notes -- Private limited partnerships, limited liability companies, and C corporations -- Tax lien certificates

Funding With Your Self-Directed IRA cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Funding With Your Self-Directed IRA cont. Allowable Investments Using Self-Direct IRAs: -- Foreign currencies -- Oil and gas investments -- Publicly traded stocks, bonds, mutual funds, Private stock offerings, private placements, -- Judgments/structured settlements, -- Gold bullion, -- Car paper, -- Accounts receivable, and -- Equipment leasing

Funding With Your Self-Directed IRA cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Funding With Your Self-Directed IRA cont. A Prohibited Transaction is any improper use of your traditional IRA account or annuity by you, your beneficiary, or any disqualified person. Disqualified persons are individuals or entities, including your fiduciary and members of your family between whom or which an IRA is prohibited from engaging in any direct or indirect sale or exchange or leasing of any property, lending of money or other extension of credit, furnishing goods, services or facilities, or transferring to or permitting the use of IRA income or assets

Funding With Your Self-Directed IRA cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Funding With Your Self-Directed IRA cont. IRS-Prohibited Traditional IRA Transactions: Borrowing money from it Selling property to it Receiving unreasonable compensation for managing it Using it as security for a loan Buying property for personal use with IRA funds

Other Types of Quick Funding : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Other Types of Quick Funding Health Savings Account (HSA)   Simplified Employee Pension (SEP) Coverdell Educational Savings Accounts (CESA)

Equity Trust : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Equity Trust Since 1974 Equity Trust has been helping you create tax-free wealth while securing your financial future. Equity Trust suggests how to use your IRA to build your wealth and financial freedom.

Using Your IRA To Fund Your Investment : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Using Your IRA To Fund Your Investment 1. Open and Fund IRA   Contribute to the account   Rollover/transfer funds from custodian

Using Your IRA To Fund Your Investment cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Using Your IRA To Fund Your Investment cont. 2. Research Tax Lien Purchasing Options   Tax lien vs. tax deed states   Tax lien servicing agents   Certain counties will not allow multiple investors under same tax ID number-call Equity Trust for other investment options

Using Your IRA To Fund Your Investment cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Using Your IRA To Fund Your Investment cont. 3. Find an Auction to Attend  4. Complete and Submit Tax Lien Direction of Investment Form   To request funds for auction   Make sure documentation is titled to the IRA   5. Attend the Auction or Have Your Tax Lien Agent attend

Using Your IRA At Auction : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Using Your IRA At Auction Source: Equity Trust Company. Online at: http://www.trustec.com

Advanced Investing : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Advanced Investing

Bypassing The Auction : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Bypassing The Auction Get the property list from the County (www.corelogic.com, www.propertylist.com) -- Delinquent Tax Roll List -- Tax Roll & Assessment Roll List -- Tax Deed & Tax Lien Auction Lists

Bypassing The Auction cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Bypassing The Auction cont. Filter the List Sort by: City Annual base tax Total of property taxes owed If there are outstanding property taxes If there are tax lien issues

Bypassing The Auction cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Bypassing The Auction cont. Determine the value of the property from the Tax Roll: If taxes are owed If the tax lien have issues How much property tax is owed: PROPERTY TAX AMT. = Base tax/yr. = 1%-2% of market value OR ASSESSED VALUE = “X” PERCENT of market value

Bypassing The Auction cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Bypassing The Auction cont. Send letters to Owners Short letter: Delinquent for non-payment of property taxes letter Short letter with price offer Tax deed letter Make low-ball offers Use skiptracing to find property owners

Bypassing The Auction: cont. How To Contact The Owners : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Bypassing The Auction: cont. How To Contact The Owners Send a very simple letter asking to buy the property My simple letter has 5%-15% response rate (2%-3% for mortgage foreclosures) The Owners will call you! They are qualified sellers They give you property information

Bypassing The Auction cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Bypassing The Auction cont. Talk to the Sellers Questions to ask every seller: #1. What is your first & last name? #2. What is the address of the subject property? #3. In what city, state & county is the property located? #4. What are your phone number and email? #5. Do you own other properties you’d like to liquidate? #6. How large is your property? #7. How long have you owned the property?

Bypassing The Auction cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Bypassing The Auction cont. Talk to the Sellers cont. Questions to ask every seller cont.: #8. How did you buy the property? #9. Is the property owned free & clear? #10. Is there road access? #11. Is there power to the property? #12. Have any improvements been made to the property? #13. How much do you want for your property??

Bypassing The Auction cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Bypassing The Auction cont. Do a quick property check online (Google.com) Buy discount properties (wholesale) Sell properties wholesale or retail (for quick cash or build your portfolio) Isn’t this EASY??

C.L’s Rule Of Thumb : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com C.L’s Rule Of Thumb Concentrate on LAND not homes Do your homework Find your properties online NEVER be the first to name a price in a negotiation! Never be afraid to bottom-fish for deals Always make lowball offers Work with Realtors when necessary Use call centers & answering services

The Closing Process : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com The Closing Process The Closing Process begins after the buyer & seller enter into the sales contract. You may choose to: Hire a title or escrow company to do your research for you Do the research yourself (common for low-end properties) Outsource the research to an Abstractor & process the clean report yourself

The Closing Process cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com The Closing Process cont. When you elect to have a Title Company do the research for you: The title company receives the title order A title search is performed & issues listed in Sch B of the commitment The payoff statement & real estate tax information are prepared You receive a title commitment Documentation & settlement information is provided near closing The money is sent to the Seller once the deed is recorded

The Closing Process cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com The Closing Process cont. When you elect to do the research Yourself: Search names associated with the property in the County’s grantor/grantee index according to: Parcel number Legal descriptions Search for property owners using Lexis Nexis database service Search nationwide for outstanding IRS liens against the property

The Closing Process cont.Title Companies/Title Insurance : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com The Closing Process cont.Title Companies/Title Insurance Title Insurance provides: Title search Escrow process Documents Hidden risks Title insurance = approx. 10% of the property’s value

The Closing Process cont.Title Companies/Title Insurance : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com The Closing Process cont.Title Companies/Title Insurance FACTS about Title Insurance: -- Banks will not lend money to purchase property if there is no title insurance -- A Lender’s policy protects the lender if the Buyer defaults -- An Owner’s policy protects the Buyer from hidden risks -- If the Buyer requests title insurance: give them your “self-insurance” guarantee Suggest they purchase it themselves Offer to split the cost with the Buyer

Redemption Deeds : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Redemption Deeds States best-suited to this investing technique are: Texas, Georgia, and Tennessee due to their short redemption periods -- Buy the property at auction -- Live in it -- When owner redeems it, they pay the penalty to you! -- Penalty fees are not prorated!

Excess Proceeds Technique : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Excess Proceeds Technique Only Works in Tax Deed States -- Offer the current owner a modest amount of money -- Record the deed (so YOU are the Owner!) -- Let it go to a tax sale auction -- The Owner is permitted to claim all money paid for the property at the tax deed sale in excess of the accumulated property taxes, fees, and penalties, plus interest, up to the auction date -- The County only gets what is owed them -- YOU get EVERYTHING else!!

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Contact Owners directly and offer to buy the properties that: They don’t want! They are willing to walk away from for “$0” No one else knows about (that means NO COMPETITION) Everyone else waits years for the County to post deed sales Excess Proceeds Technique cont. The Letter

Keeping Or Selling Your Property : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Keeping Or Selling Your Property People choose to keep their property : Because they intend to let it appreciate over time Depending on the location (how fast it will appreciate) Depending on the economy Depending on the opportunities to develop it

Keeping Or Selling Your Property cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Keeping Or Selling Your Property cont. TRUSTS: A land trust is similar to the average trust with two exceptions: 1) The only asset in a land trust is real estate 2) The name(s) of the beneficiary is not disclosed A living trust is created by deed when a living person puts property into a trust for the future benefit of someone (may be him/herself)

Keeping Or Selling Your Property cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Keeping Or Selling Your Property cont. Most people are worried about selling their property! 3 WAYS TO SELL YOUR PROPERTY: Using a Realtor is the WORST way! Retail on your own gives you the biggest paycheck but takes a long time Cash wholesale is the #1 way to sell! and the FASTEST!

Keeping Or Selling Your Property cont. : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Keeping Or Selling Your Property cont. NO RISK! If you buy at 5% - 25% of market value, you’ll always make $$$$ regardless of the market. You make money even if market drops 50%!

Selling Your Property On Terms : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Selling Your Property On Terms EXAMPLES of making your land cash flow! As a hobby, you can do 2 deals a month! $2,000 down + $150.00/ mo. terms on a land contract nets you $300.00/mo. passive business income 2 deals a month = 24 deals a year 24x $150/mo = $3,600/month What can $3,600/mo passive income do for you?

Maximize Your Success : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Maximize Your Success Sell high-value properties you only paid 10% - 20% of market value for, for a cash profit! Take the initial investment (from your profit) and purchase high-value properties Take what remains and purchase several low-value properties on terms

Flipping TLCs : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Flipping TLCs Sell your TLCs to another investor Sell certificates that are only earning you 18% - 25% They guarantee the investor a double-digit profit You make a return on your investment

Case StudiesGinger Blomberg : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Case StudiesGinger Blomberg My Star Student (Deal #1) Purchased tax deed property for $22,000 Property worth $74,000 Received $10k deposit Buyer refinanced and closed 45 days later Sold for quick cash sale of $36,000 over Thanksgiving weekend Ginger’s Profit = $14,000 on deal #1

Great Quotes : 

C.L. Jones The Tax Lien Superstore www.taxliensuperstore.com Great Quotes “It’s easier to sell them something they really want, than to try to sell them something they really need” ---- unknown “To get what you never had, you have to do what you have never done” --- unknown

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