Concept 9 - Letters Are Not Enough

The 10 Essential Concepts Behind DeedGrabbing:

Concept 9

Now, when you send letters to tax-delinquent owners, you will expose only some of the walkaway owners with equity - but enough to make some good money. However, you can do several times more deals if you take the initiative to find the owners who don't bother to call you. And these deals will often have a higher profit margin.

You simply must use the tools out there on the internet to find new addresses and phones for the owners for whom you recieve returned mail. Returned mail, of course, exposes many of the walkaways. But even after using those services, you may hit a dead end. You may get returned mail again, or the owner may receive the mail but fail to call you.

So you need to call them.

Negotiation 101 says that you want to be in a position of strength. So the conventional wisdom is that we are automatically in a position of power when the owner calls us - and a position of weakness if we call them.

In this situation, that conventional wisdom is completely false. We don't need to strengthen our negotiating position, because the government is taking care of that by threatening the property with a tax sale.

And, we're looking for indifferent, walkaway owners. A lot of the owners who are indifferent enough to deed us their property for almost nothing, are indifferent enough to get our mailers and not even take the time to call us.

The 9th DeedGrabber Essential Concept is a corollary to the 8th:

"Mailing to the target owner is not enough - we must call them if they don't call us".

I got an email from a subscriber in Florida a while back. He had mailed to an owner and gotten his letter returned. He then used our skiptrace service, mailed to the new address provided, and got the second mailing piece returned also.

But he wouldn't give up, because he had driven by the house, assessed at $300k+, and found it abandoned. And the owner was going to lose the house within a couple weeks.

I told him to go to the county website and look at all the documents relating to the property, like past deeds, any mortgages or liens or satisfactions, anything that might give a clue to the owner's whereabouts. This turned up empty as well.

As a last ditch effort, he viewed the tax sale file, also found online. And guess what he found? A 20 page letter from the owner to the county, right there in the file, in which the owner explained that he was desperate to find a solution to the issue, was sick, and living thousands of miles away in Ohio.

The owner didn't even have a phone. And as a matter of fact (I'm not making this up) a few of those 20 pages were pictures showing the owner's bare backside in a hosptial gown, in an attempt to convince the tax collector that his poor condition warranted an extension of the deadline.

Hey, I never said this business was tame!

Extentions are rarely given when a property is nearing the final tax sale deadline.

What's my point? At the end of that 20-page letter was an email address.

Last I heard, the student was cooking up a "partner-up" deal with the owner where the student will stand to make over $100,000 (I hope I get to be involved in that one!).

To sum up - don't rely on tax-delinquent owners to find you. In fact, don't even rely on them to call you from your letters (answer that phone though!). Make the effort to call them or otherwise locate them if you don't get a call - you'll be glad you did.

"My Ding-a-Ling" -

It's easy to get your phone to ring with a seller on the other end - but should you be on the phone with them? If you market like most investors, my answer would be "no".

Real investors get things done by PICKING UP THE PHONE and making things happen. Get your hands on the information that changed my investing strategy for good - Joe Kaiser's "Gonzo Investing".


Rick Dawson
The DeedGrabber

Everything You Need to Know to Profit From
Tax Property Before the Sale -

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{ 1 comment… read it below or add one }

silvino Camacho September 24, 2012 at 2:49 pm

Hey Rick, good morning .
Silvino here in CA, hey Sunday night training class was really good , and concept 9th, it is good too. I am reading every thing I can about it, until I have the cash to buy your free and clear program. Thanks, Silvino Camacho.


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