We all know that our economy is going to hell and foreclosures are at an all time high. This situation opens the doors for a few smart people to follow new paths towards financial independence.
All it takes is a little bit of work and creativity to get started.
Here we go.
Not too long ago I was researching all of the houses & lands that were going in foreclosure for non payment of taxes and found 17 properties that did not owe a mortgage, federal liens or any other liens besides taxes.
I proceeded to send letters (Carleton Sheets Style) to the owners informing them that their property was going in foreclosure and that I really hoped they could save their property (which I really did) but that if they were not planning on saving their property for any reason, I would be interested in taking it off their hands.
The letters are designed to inform them that their property is going in foreclosure because a lot of the times these people are not aware that they are.
The government sends them a letter to their last registered address and a lot of the times the owners have moved.
The second part of the letter says that I wish that they could save their property which I really do.
Third part of the letter says that I have the money to go bid on their property right now but I would feel awful always knowing that their house was foreclosed on specially if they did not know anything about it.
Fourth part is my offer. Usually $500 - $1,000 bucks for their deed and I would also pay the outstanding taxes. (That way they at least would get something)
I also include a self address stamped envelope & a quit claim deed already filled out so all they have to do is go to a notary to sign and return.
From the tons of letters I sent, I received 3 back.
2 of them wanted way too much for their properties (which sold at auction for a lot less)
1 of them was from a gentleman who was about to be deported. I met with the gentleman and he decided to take $1,100 in payment for a quit claim deed on the spot.
With the quit claim deed on hand, I then went to public records to register my new property.
Because the property changed hands, they had to stop the auction and INFORM everyone again that the house is going in foreclosure and the process takes 3 full months.
Now, here is the trick!
Since real estate is not selling (I tried)
I decided to let the house go to auction for non payment of taxes!!
The reason I did this is because I know that every single county anywhere in the United States will cut you a check for any overbids.
What this means is that anything over what the government is owed comes back to the owner on record.
In my case, The house owed $7,000 in taxes & sold for $42,000 (I'll tell you how in a minute)
Since now I had 3 extra months I decided to market this shitty house online.
I made a ton of image ads and used Easy Ad Poster to market the house all over Craigslist. When I say all over Craigslist I mean all over my state every day, 2 times a day for 3 months.
I also used wordpress and made a site for the house with all it's pictures and all of the information supplied by the state about the house including images of all the legal paperwork supplied by the state.
It was pretty easy to do since the state has all of the paperwork already scanned and turned into pdf.
I also set up an email address for the website itself.
On auction day, I proceeded to go there early so I could talk to people and see how many of them were there for my property (To see if the marketing was good) and to my delight I had 43 people there for my house alone.
People that have never gone to an auction before but decided to go because everything they needed including auctions rules, methods of payments etc was already in the website I made.
My property goes on the auction block and people start bidding from the opening bid of $7,000 all the way to $42,000 in increments of $100 which made the auction look like it was taking forever.
To get paid all I had to do was fill out a W-9 and Affidavit of ownership with the state and wait for my check
1. Research tax deed sales online for your county
2. Send letters to owners & include a quit claim deed
3. Speak to the owners that are interested in your offer since they planned to let it go anyway
4. Decide what you will do with the property whether a regular sale or let it go to auction
5. Promote your property online like crazy
6. Attend the auction and see your property go
7. Go to public records and fill out papers claiming your overbid
8. Wait 3 months for your check
There are a ton of ways to make money from this sucky economy. All you have to do is open your eyes and see the opportunities around you