DeedGrabber Mini Course Day 4

"What Do I Say To The Owners?"

I hope you can feel for the owners who are losing their properties to tax sale, and understand how they may have gotten there. And why their best option may be to deed the property to you for next-to-nothing.

Today it's time to discuss how we contact the owner, and what we say to them when we get them on the phone.

The first step is easy - just send them a letter. Even that can be done using the internet, in just minutes (I show you how in my ebook).

There are entire courses out there on how to write a good letter to contact owners in foreclosure. I've found that it's not really necessary to get fancy.

On plain white paper, I write a letter that goes something like this (of course you'll tailor your letter to match the situation of the owners on the list you got from the county):


"Dear Owner,

I'm writing to give you a "heads up" that your property was sold at a county tax lien sale on x/xx/20xx, and the deadline to redeem the property is x/xx/20xx.

-or-

I'm writing to give you a "heads up" that your property will be sold at a tax deed auction on x/xx/20xx if all delinquent taxes are not paid.

Do you have everything taken care of? If you aren't able to pay the taxes, or don't want the property, I might be interested in buying it.

Please call me today if you would like to try to do something with it. You will lose the property completely on x/xx/20xx if no action is taken.

If this is the first you've heard of the situation, I'll be happy to share any information I can with you.

Sincerely

Rick Dawson"


You WILL get calls when you send a letter like this to a couple hundred people nearing tax foreclosure.

When an owner calls, I basically say the same thing as I say in the letter - "I just wanted to make sure you were aware of the tax sale and had it taken care of". If they ask why you're inquiring, just explain you're interested in unwanted property, or property that owners can't redeem.

This will almost always lead them to explain their situation. Some will just want information for now. If they are just now hearing about the situation, you can bet they're not keeping a close eye on the property and may want or need to sell.

Others have been desperately trying to save their home and will ask for help. You will have to evaluate whether that is something you want to do.

If someone says they would like to sell, ask what they need to walk away with if you take care of the tax obligation. Often they're happy to clear $1,000 - $2,000 from the property if you pay the taxes.

The "Walkaway"

But what you're really looking for the owner to say is, "Oh, I'm just going to let the property go."

In that case you reply,

"Well, if you're going to let it go, I'd like to see if there's anything I could do with it. What if we got it out of your name now and gave you fifty dollars for your time in signing over the paperwork?"

(Memorize that line, and be ready to use it when appropriate, it works almost every time!)

DO NOT say "will you take $50 for the property"! We want to compensate them for their time, so they will sign over an unwanted property. We don't want them to feel like they're getting ripped off.

If someone is rude or otherwise uncooperative, I politely hang up with them and move on.

Now you're ready to prepare a deed and have the owner sign the property over to you for as little as $50.

A couple notes:

-You can often sell such a property before the drop dead date. Therefore you only have a small amount out of pocket, and at risk. You can pay the delinquent taxes out of your sales proceeds.

-I do not rely on the owner calling me. I also attempt to call them. Most are grateful that you checked in on them.

-I save all returned mail from the campaign, and use a skiptrace website to find new addresses for these owners. THESE ARE ABSOLUTE GOLD, as these owners have not received any word of the tax sale through their bad address.

In the final installment we will recap the whole process and talk about why these bargains are available using our "DeedGrabbing" method.

Tomorrow's lesson has a simple title:

"Getting Paid"Sincerely,


Rick Dawson
The DeedGrabber

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

The DeedGrabber Ebook

DeedGrabber Ebook

Yes, I'd like to get the DeedGrabber information NOW!

Choose your version (click one):

Ebook Digital Download: "Go Ahead, Be a DeedGrabber" in digital format for immediate download. Takes you step-by-step through the process of DeedGrabbing, from getting your list of owners, to contacting the owners, what to say to them, and how to research the property for value and title issues before you buy. Then, how to sell the properties you get for big paydays.

DeedGrabber Study Course: Immediate download of the ebook PLUS the ebook in written format shipped to you free by UPS. Additional materials include Legal Forms CD which itself can save you thousands of dollars developing your paperwork. Also includes seminar DVD, Quick Start CD, and Introduction to DeedGrabbing CD with Jackie Lange of CREWealth.com.

 

{ 18 comments… read them below or add one }

Matt Forsythe September 26, 2011 at 7:27 pm

Rick,
If the property has already been attempted to be sold on the courthouse steps and it did not sell, is the mortgage wiped out at the courthouse sale anyways? I am in Georgia, and from what I read on the law, it says anyone with any interest in the property has 60 days to claim it, and 1 year redemption period.
Thanks.

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Rick Dawson October 1, 2011 at 2:21 pm

I'm really not sure about that Matt. I bet if you asked the agency holding the sale, they would know.

If the property is taken over by the county at that point, the mortgage is probably wiped out. If it remains in the owner's name, the mortgage is almost certainly still there for now.

I've found little or no opportunity with properties that didn't sell for the minimum at the sale, unless they're offered for much less at a later sale (with shorter redemption time too).

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Gale McKenzie September 28, 2011 at 2:52 am

I told if something sound to good to be true it just that too good to be true.However I'm going to give it a try. I a senior on a fix income and I can't afford to lose anything but on October 3,2011 I'm going to order your program.

Thanks Gale

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Rick Dawson October 1, 2011 at 2:18 pm

Great Gale! Good luck to you.

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lynne peterson September 29, 2011 at 4:34 am

Thank you Rick, this was the answer I was looking for.

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kristy October 3, 2011 at 11:15 am

We have found properties just by driving in a neighborhood and then came home and went to the county website to see who the owner was. we got their info and then mailed out the letters. we got offers to buy a different house or to buy a group of properties.what should we do about the letters we sent out, but got no response? should we just let them go or follow up through the county? their have been numerous letters that never got returned or no phone call back. thank you!!!!

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Rick Dawson October 5, 2011 at 2:22 pm

To me, driving a neighborhood isn't enough of an indication of motivation. Therefore I wouldn't take the time to hunt the owner down. Also there is a high liklihood of a mortgage.

If you start with tax delinquent records, or properties about to hit the tax sale, then drive THOSE, now you really have a good prospect that's less likely to have a mortgage.

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MYRNA AGBAYANI December 27, 2011 at 2:17 pm

Is this applicable to properties about to hit the tax sale how about those properties that about to hit the trustee sale. Will this apply to those properties also? How about the prices is the a parameter for tax sale and trustee sale if this apply to trustee sale also?

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Rick Dawson December 27, 2011 at 11:35 pm

A similar stategy was useful in the past for trustee's sales. However, it's very rare now that properties have any equity when their mortgage is foreclosed. Contrast that with just a few thousand dollars owed on many tax sale properties, with no mortgage (most properties left on the list near the sale, don't have one).

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ernie schaaf December 11, 2012 at 4:38 pm

Hi Rick,

I have read some of your info and let me say, I have gone to tax deed auctions
and it is exactly as you say it is. Bids way over open bid almost up to full market value. I have been looking for a way to beat this system and it looks like you have the answer!! I will be reading more of your work!!!!
Thanks
Ernie

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John Cochran February 27, 2013 at 3:25 pm

Might have been very interested in picking up your "Deed-Grabber" information, but the e-mail advertisement you sent me left off all the inportant information (i.e., how much the book cost. Is it no longer for sale?

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Rick Dawson March 5, 2013 at 10:41 pm

I was not aware we had an issue like that. Full information is at deedgrabbercart.com

Perhaps you'd be interested if you took a look 😉 It's $59 and it's updated regularly.

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Brenda May 31, 2013 at 2:06 pm

Rick ,
I just wanted to ask about the sample letter you addressed to a homeowner who had already lost their property at a tax sale, I realize that once sold the owner has 180 days to 1 year I believe to pay the buyer back for purchase price plus a percentage to regain the property so am I understanding that you were writing the letter basically offering to buy the property back on behalf of the owner who just lost it so that you could have ownership of the property (after giving them compensation of course)......If so that is pretty smart... sneaky , but smart.

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Rick Dawson June 10, 2013 at 12:19 pm

Most areas do not allow this situation, just a few redeemable deed states. But we write the letter just prior to the owner losing the property completely, whenever that is.

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Christine December 18, 2013 at 10:28 am

Hi Rick,
Thanks for taking time to advice home buyers on how to go about contacting the owners of homes going out for foreclosure sales. It's a two way traffic.

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Lamont February 18, 2015 at 3:36 am

I'm interested in possibly purchasing your course. Do you have any feedback from purchasers in the Phoenix, AZ area?

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Rick Dawson February 23, 2015 at 10:03 am

I don't have any handy - but Arizona being a lien state with 3 year redemption period, my Deedgrabber strategy will work excellent.

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SOCRATES March 13, 2015 at 12:14 am

Just fascinating.

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