Imagine if there was a certain combination of words that you could say to a complete stranger that would frequently result in you AND THAT STRANGER receiving thousands of real estate dollars that had been MISAPPROPRIATED by the government in about 76 days. I’m betting you’d crack out that pencil and paper to write them down. I’ll tell you that combination of words today. I’m Carole Ellis. This is Episode 56.
So how about it? Are you ready for some “magic” words? And how does that word, “misappropriated” come in? Who’s the government “stealing” from now? I’ve got the answers in today’s podcast, and I’m warning you, it’s going to make you squirm a little when you find out what your local government has been up to under your very nose. It’s not pretty, but the good news is that you can right this wrong (Oh, and you can build a nice little business out of doing so while you’re at it).
So let’s get down to business. Here’s what’s going on. Every time a local government has a FORECLOSURE AUCTION to sell off homes that are in foreclosure due to NONPAYMENT of property taxes, there is an EGREGIOUS wrong being done to the foreclosed homeowners. We talked to real estate attorney and investor Bob Diamond, who has been active in this space for more than 10 years, about what’s happening. He explained that when a homeowner goes into tax foreclosure, they owe, on average, three to four years of property taxes. At most, he said, that’s about $25,000 including fees and penalties. However, most homes sell at tax foreclosure auctions for 70 percent of market value, and that means that they’re selling, on average, for about $130,000. Do you see the discrepancy? Just in case you hate math like me, I’m going to spell it out: Once that $25,000 owed to the government is taken out, there’s another $105,000 (again, these are averages, but you see the point) left over that SHOULD go to the former homeowner – in fact, it legally belongs to them, no question about it, it’s in the law in black and white – but instead, that money goes into a government SLUSH FUND where the government can use the interest that it’s earning (and sometimes they even get into the money itself) for whatever, well, the government wants.
Does that sound right to you? Think about it. These homeowners have just gone through what most people agree is THE WORST EXPERIENCE an individual can have when it comes to homeownership, and many people say packing up their families and moving out of a foreclosed home is the hardest thing they’ve ever done. Now, they SHOULD be getting access to funds that could really help them out in this awful situation, but instead, they’re getting thrown out of their houses and the money is nowhere in sight. That’s where you and your “magic word combination” come in, by the way. This is what Bob does (remember, he’s a lawyer and a massively experienced investor) and you can do it too. Here it is in his own words:
“These people are HAPPY to hear from me. Think about it. What would you say if I called you and said (here it is, folks):
“Hey, you’re owed $34,000 from the government. I’d like to work with you to extract that money, I’ll do the word, would you like to do this with me?”
Do you think that these people care whether you live in their state or whether they know you? This a business done perfectly by telephone, by fax, by email, by US Postal Service.
Remember, every county in America holds one of these tax sales at least once a year, so the pool is HUGE. And you could be the best news these people have had since their foreclosure!”
So now that you have the magic words, you’re probably wondering where the 76 days comes in, am I right? Well, Bob tells me that on average, it takes 76 days from the time that he identifies money owed and contacts the former homeowner to the point where the homeowner has their money and Bob has a nice, healthy finders fee in hand. And those finders fees are not small, ladies and gentlemen. Here are just a few examples from real, live deals that Bob and his students have done:
Excess funds of $127,758.49. Finder’s fee: $44,715.47.
Excess funds of $134,247.89. Finder’s fee: $46,986.76.
And here’s a “smaller” one for perspective:
Excess funds of $41,515.88. Finders fee of “only” $14,530.56.
Do you see how you could turn your Robin Hood nature loose, taking from the greedy government and giving back to needy homeowners, and still make a good, good living at the same time? And here’s the thing, folks, because I know some of you out there are thinking it right now: you deserve that finder’s fee. You have a skill that unfortunately most foreclosed homeowners don’t have (if they do, then they’ve already got their money anyway!) and you’re doing work to get that money for that abused homeowner! Sure, it would great to do it for free. Do you have enough income or money saved to quit your job and start doing it that way? Well, if you do, that’s fantastic, but if you don’t, think about all the people who will NEVER know about this life-changing access to funds they actually OWN if you opt to not improve your own life and theirs in the process. And think about this: Your loving, caring, government is BANKING on you deciding not to take action. That way, they can keep their slush fund. If you do the work, you deserve the fee, and Bob tells me that in his experience, homeowners are OVERJOYED to hear that they have a huge check waiting for them, not quibbling with him over paying for highly valuable services.
Anyway, now that we’ve dealt with that, let’s talk about how you can start making this happen. Basically, there are a few simple steps you have to take to start finding out where these funds (and the associated foreclosure victims) are located. Bob goes through this process IN DETAIL in a special training that our publisher, Bryan Ellis, is hosting. It’s free, but space is limited and let me tell you, people love this stuff, so you need to act quickly to make sure you get in while there is still room. Go to www.rei.today/amazing RIGHT NOW to reserve your spot. That’s www.rei.today/amazing.
And while you’re at it, text REITODAY, no spaces, no periods, to 33444. That way you’ll always be in the loop for the latest and most important breaking real estate news coverage, exclusive training, and the best networking available in your area. That REITODAY no spaces, no periods to 33444.
And folks, remember, when you joins us at REI TODAY, you’ll also be able to GROW YOUR NETWORK by interacting with me, my guests, and your fellow listeners to REI Today (heck, maybe we’ll even get Bob in the mix)… so stop by to ask questions, make comments and network with other investors across the country. Text REITODAY no spaces no periods to 33444 after you head over to www.rei.today/amazing right now.
REI Nation, thanks for listening in and always remember this:
Your best investment is your own education.
Carole Ellis is the host of Real Estate Investing Today, a popular 9-minute daily podcast focused on educating real estate investors about the important topics that will make their investing SAFER, FASTER, and MORE PROFITABLE. She's also the editor of the Bryan Ellis Investing Letter. She has more than a decade's worth of experience in and reporting on the real estate industry and, additionally, has written dozens of courses on the topic. Carole lives in Kennesaw with her husband, Bryan, and four children. She believes wholeheartedly that your best investment is always your OWN education.