Concept 7 - Walkaway Owners Are Best...BY FAR
The 10 Essential Concepts Behind DeedGrabbing:
We've gone over some important topics so far. To sum up, we need to find big equities, along with motivated owners. While these two items are usually mutually exclusive, we see that they exist in the tax-delinquent property arena.
We need to know what we're talking about so we are credible to the owner when we talk to them. When we get a deal with a nice chunk of equity, we're not going to play around to increase the property's value - we shouldn't need to. We're just going to sell and move on.
Now, within the set of tax-delinquent owners we'll encounter are certain subsets. These include:
-Owners who live in the property and want to keep it (not so great)
-Owners who live in the property who have no equity (almost NO chance of profit)
-Owners who live nearby, but outside the property (good)
-Owners who live far away from the property (better)
-Owners who have completely walked away from the property (these are the key!)
We can often tell, just by looking at public records, who lives at their property (the mailing address for the bill is the same as the property address), who lives outside the property but nearby, and who lives far away from the property.
We really want to concentrate on the owners who live far away from the property, and of those owners, the owners who have walked away.
This brings us to the 7th DeedGrabber Essential Concept:
"Do what it takes to locate the walkaway owner - and make a deal".
Unfortunately, there is no column in our list that says "walkaway owner". We'll have to flush them out. And to make it a little more complicated, walkaway owners, who live far away, sometimes still have their mailing address listed at the property address - even though the property may be vacant.
No problem - we'll find those folks in our returned mail stack.
90% of walkaway owners have one or more of these characteristics:
-They live many miles away from the property
-Their address is out-of-date with the county, resulting in returned mail
-They inherited the property and have given up
Deceased owners can indirectly be considered walkaways - because their heirs are not handling the property that is due them, and it's falling further and further behind in taxes.
Who would you rather deal with - a tax-delinquent owner who lives in a $100,000 property and owns it free and clear, or a tax-delinquent owner who lives a thousand miles from the property with $30k in equity? The answer is the out-of-state owner, every time.
When you get your tax-delinquent list, it can have thousands of properties listed on it. This is too many owners to mail to in many cases. Where do you start?
Eliminate junk land assessed at $10,000 or less. Eliminate corporate owners in most cases. Consolidate owners who own multiple properties down to one record so you only send them one letter. This will often shrink the size of your list by 50%.
Then, start with the owners who live outside the county you're working in. You'll expose a good deal of the walkaway owners by receiving calls from them or getting returned mail for them.
Get to those walkaway owners, and watch the deals roll in!
|My 'List Wizard' Software can automatically perform all the operations described above. All you need to have is Microsoft Excel installed on your computer.|
Not familiar with Excel? You don't really need to work with your list in Excel at all. Just hit a few buttons and let the software identify your out-of-area owners automatically, as well as format your names and addresses for mailing. Ready? Get it here.
Everything You Need to Know to Profit From
Tax Property Before the Sale -
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