JustinMcClelland.com » Tax http://www.justinmcclelland.com From Zero To Seven Figures Tue, 07 Sep 2010 09:09:13 +0000 en hourly 1 http://wordpress.org/?v=3.0.1 Tax Lien Sale and Offers http://www.justinmcclelland.com/index.php/2009/10/tax-lien-sale-and-offers/ http://www.justinmcclelland.com/index.php/2009/10/tax-lien-sale-and-offers/#comments Fri, 30 Oct 2009 01:28:49 +0000 Justin McClelland http://www.justinmcclelland.com/?p=436

I’ll start out with the bad news (not really).  I met with the lady who owned the house I checked out a couple of weeks ago to submit my offer and go over my documentation.  I had 7 comps, a CMA, an expense report, and a contract.  Here is the rundown of how the meeting went:

8:55am – I show up to property for 9am meeting
9:08am – Lady arrives and I’m irritated that she’s late. If anyone’s going to be tardy, it’s going to be me! (I have ‘some’ nerve)
9:18am – Ten minutes of time wasted with small talk
9:19am – I whip it out (the paperwork that is)
9:20am – I choose to go over the comps of her property first. They were good as-is comps that were in the 55K – 65K range.
9:21am – She frowns at the very first comp and I think she rolled her eyes too
9:21am – I ignore her disgust and continue my spiel
9:23am – I show her the CMA (comparative market analysis) which conveys her house-value as-is should’ve been in the 60K range
9:24am – I go over the expense report with itemized repairs needed for the house
9:25am – She disputes almost every item on the list saying that such items need not be replaced
9:25am – I daydream of pimp-smacking her with one of those Styrofoam “We’re #1” hands that you can purchase at any ballgame
9:26am – I snap out of the daydream and continue on
9:27am – I give her my offer of 47K and I met my goal of keeping a straight-face
9:28am – She is extremely disappointed in the offer
9:29am – She continues to talk and tell why she can’t accept that offer
9:33am – She is talking about the offer amount she was looking for
9:33am – I succeed in not laughing in her face
9:43am – She’s still talking
9:45am – She’s still talking some more, I daydream of winning an Oscar for acting like I’m interested in the conversation
9:50am – She’s still talking and is actually dropping hints that she’s warming up to the offer
9:55am – I tell her to think about it and call me if she changes her mind, we part ways

So, we’ll see if that’s the last of that lady.  She’s a nice lady, don’t get me wrong…but I wouldn’t be surprised if she took 4 bong-hits every morning before getting out of bed.  Anyway, I’ll call her next week and see if she’s warmed up or not.

And now the good news.  I went to my first tax lien sale yesterday and I learned sooo much!  First-off, I don’t know why more people aren’t doing this.  And secondly, I’m definitely going to be there in full force next year!   By the way, I couldn’t get any video footage of the auction, I punked out.  It was so quiet in the auction room (auction was computerized), I didn’t want anyone to hear my Flip camera turn on.  Everyone who has one would know the sound it makes.   The investor who I did some preparation work for allowed me to look over his shoulder while he bid.  He even let me do some bidding!  This guy is a major player in the game.  In the 2.5 hour bidding of over 2,000 properties, I witnessed this guy snatch up over $560K in lien certificates.  I’m going to hang around this guy whenever he’ll let me, I need some of that to rub off!  The speed in which these properties are auctioned at is incredible.  You literally have only 1-5 seconds per property to place your bids.  The auction in Champaign County is computerized.  The county outsources the bidding administration to a company called Rams Auctions and if I’m not mistaken you can do your bidding from home also.  The auction was held at the county building where the Recorder’s office is, the Tax Assessor, the Coroner, everything.  In the bidding room there were tables with laptops setup for each bidder.  Then there was an overhead image projected of all the bidding so that spectators could see what was going down.  To get an idea of how this all worked, check out the video by Rams Auction, but keep in mind they slowed down the examples:

http://www.ramsauctions.com/demo/RAMS%20Tutorial.html

Next year it’s on!  I’m going to be at that tax sale and ready to rumble.  The funny thing is that some of the bidders there barely knew what they were doing!  You should’ve heard the questions asked after the sale was over.  That’s right, I said AFTER the sale.  Questions like, “Now that I’ve spent about $30K in lien certs, what happens next?”  I’m not joking either!

My experience at this sale inspired my most recent BiggerPockets blog post.  There you can read about a few of the strategies and research techniques that I thought of since yesterday.  And that’s just the tip, I have a whole year to think of more!  I cannot be stopped.  You better get-down or lay-down!  Peace Out!

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]]> http://js-kit.com/rss/justinmcclelland.com/p=436 3 Virtual Numbers, Tax Sale Buyers, Municipal Code http://www.justinmcclelland.com/index.php/2009/09/virtual-numbers-tax-sale-buyers-municipal-code/ http://www.justinmcclelland.com/index.php/2009/09/virtual-numbers-tax-sale-buyers-municipal-code/#comments Wed, 30 Sep 2009 04:13:13 +0000 Justin McClelland http://www.justinmcclelland.com/?p=387

I’ll start out with the bad news (not really).  I met with the lady who owned the house I checked out a couple of weeks ago to submit my offer and go over my documentation.  I had 7 comps, a CMA, an expense report, and a contract.  Here is the rundown of how the meeting went:

8:55am – I show up to property for 9am meeting
9:08am – Lady arrives and I’m irritated that she’s late. If anyone’s going to be tardy, it’s going to be me! (I have ‘some’ nerve)
9:18am – Ten minutes of time wasted with small talk
9:19am – I whip it out (the paperwork that is)
9:20am – I choose to go over the comps of her property first. They were good as-is comps that were in the 55K – 65K range.
9:21am – She frowns at the very first comp and I think she rolled her eyes too
9:21am – I ignore her disgust and continue my spiel
9:23am – I show her the CMA (comparative market analysis) which conveys her house-value as-is should’ve been in the 60K range
9:24am – I go over the expense report with itemized repairs needed for the house
9:25am – She disputes almost every item on the list saying that such items need not be replaced
9:25am – I daydream of pimp-smacking her with one of those Styrofoam “We’re #1” hands that you can purchase at any ballgame
9:26am – I snap out of the daydream and continue on
9:27am – I give her my offer of 47K and I met my goal of keeping a straight-face
9:28am – She is extremely disappointed in the offer
9:29am – She continues to talk and tell why she can’t accept that offer
9:33am – She is talking about the offer amount she was looking for
9:33am – I succeed in not laughing in her face
9:43am – She’s still talking
9:45am – She’s still talking some more, I daydream of winning an Oscar for acting like I’m interested in the conversation
9:50am – She’s still talking and is actually dropping hints that she’s warming up to the offer
9:55am – I tell her to think about it and call me if she changes her mind, we part ways

So, we’ll see if that’s the last of that lady.  She’s a nice lady, don’t get me wrong…but I wouldn’t be surprised if she took 4 bong-hits every morning before getting out of bed.  Anyway, I’ll call her next week and see if she’s warmed up or not.

And now the good news.  I went to my first tax lien sale yesterday and I learned sooo much!  First-off, I don’t know why more people aren’t doing this.  And secondly, I’m definitely going to be there in full force next year!   By the way, I couldn’t get any video footage of the auction, I punked out.  It was so quiet in the auction room (auction was computerized), I didn’t want anyone to hear my Flip camera turn on.  Everyone who has one would know the sound it makes.   The investor who I did some preparation work for allowed me to look over his shoulder while he bid.  He even let me do some bidding!  This guy is a major player in the game.  In the 2.5 hour bidding of over 2,000 properties, I witnessed this guy snatch up over $560K in lien certificates.  I’m going to hang around this guy whenever he’ll let me, I need some of that to rub off!  The speed in which these properties are auctioned at is incredible.  You literally have only 1-5 seconds per property to place your bids.  The auction in Champaign County is computerized.  The county outsources the bidding administration to a company called Rams Auctions and if I’m not mistaken you can do your bidding from home also.  The auction was held at the county building where the Recorder’s office is, the Tax Assessor, the Coroner, everything.  In the bidding room there were tables with laptops setup for each bidder.  Then there was an overhead image projected of all the bidding so that spectators could see what was going down.  To get an idea of how this all worked, check out the video by Rams Auction, but keep in mind they slowed down the examples:

http://www.ramsauctions.com/demo/RAMS%20Tutorial.html

Next year it’s on!  I’m going to be at that tax sale and ready to rumble.  The funny thing is that some of the bidders there barely knew what they were doing!  You should’ve heard the questions asked after the sale was over.  That’s right, I said AFTER the sale.  Questions like, “Now that I’ve spent about $30K in lien certs, what happens next?”  I’m not joking either!

My experience at this sale inspired my most recent BiggerPockets blog post.  There you can read about a few of the strategies and research techniques that I thought of since yesterday.  And that’s just the tip, I have a whole year to think of more!  I cannot be stopped.  You better get-down or lay-down!  Peace Out!

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