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March 3, 2010

The price of protection. Post 147

Tax delinquent real estate, tax liens, and tax deeds are a great way to invest in real estate. Pre-foreclosure and foreclosure investing is significantly enhanced by Coach Mitch's system.

Coach Mitch’s REFLECTIONS

Homeowner’s insurance is a necessary part of the real estate investor’s armor. You can normally get your investment property included into your homeowners’ insurance policy, along with your car. The more you have to insure, the more valuable a client you become and you will qualify for any quantity discounts.

Do lower housing prices mean cheaper insurance?

No. While tumbling house prices may have you wondering whether homeowners’ insurance will fall also.

The answer is not easily seen. While US median house prices have fallen about 7%, year against year, do not expect premiums to be cut by a similar amount.

Your homeowners’ policy covers your home – but also much more. The typical homeowners’ policy also covers contents, and the value of contents is likely to have risen, as well as third party liability.

Industry experts have determined that as many as two thirds of American homes could be undervalued, when seeking monies for rebuilding due to a covered incident.

Most important

Your coverage must be evaluated by understanding that the buildings element of your policy should be based on the cost of reconstructing it, and not on its current value. To base your insurance on the current market value is to make a serious error.

Construction costs up or the same

While times are hard for builders, the evidence suggests that construction pricing has not fallen like housing prices. Prices of materials have moderated, and labor is not quite as expensive, but only slightly.

The wars in Iraq and Afghanistan are taking up any slack in the US market – keeping up pressure on prices.

Check your policy

It makes sense to check that your homeowners’ policy accurately reflects the cost of rebuilding any property that you own, including any investment property.

How to calculate your market value

Talk to your insurance broker. They have their pulse on the local market.

Insurers keep track of rebuilding cost and automatically adjust policies to reflect changes in pricing.

There are online calculators that can be used to assess current costs.

Ask a builder to do a walk through and estimate the reconstruction costs.

Have an appraiser do a full inspection.

Unfortunately, lower real estate values will not lower your homeowner’ premium. However, there are other ways to reduce insurance costs. You might agree to pay a higher deductible, or make sure to use the same insurer for all your insurance needs.

Beware

Stories about insurance debacles are legend.

I will never forget a call from a coaching student informing me that a young child had fallen into a well on their newly acquired investment property. I had worked with this couple to get this property, their first, and I still remember his words, “Yes, I know that you told me to get property insurance…”

I will also never forget the nauseous feeling in the pit of my stomach upon receiving a letter from a tenant that read, “We had a girl scout meeting. Just letting you know that a young girl put her arm through the glass in your front door. She got 67 stitches. Her parents are consulting a lawyer and will be in touch with you soon.” I quickly recovered when remembering that I had liability coverage.

A vivid memory is the time that I was at an attorney’s office, fighting a claim that I, (my workers), had moved some portable front steps at a home that I had just bought and sold. It seems that the new owner became drunk and fell down the steps. Luckily, I could show that the new owner had moved the steps after my workers did, so I was not liable, but my liability policy would have protected me.

And, etched in my memory is the night that I had a washer hose rupture on the second floor of my home and the water went down two floors and did considerable damage. My insurance agent was of no help. Don’t forget, he is the agent of the company. I had to get a public adjuster. He got me at least triple what I would have known to get. He was well worth his fee.

Another costly incident was averted because I had made sure to be on good terms with a neighbor of an investment property. See the post: http://www.coachmitch.com/2007/05/05/good-neighbors-make-for-cheap-insurance/

Take care,

Mitchell Goldstein - Coach Mitch
518-439-6100 until midnight EST

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March 2, 2010

Negotiating the right way. Post 146

Tax delinquent real estate, tax liens, and tax deeds are a great way to invest in real estate. Pre-foreclosure and foreclosure investing is significantly enhanced by Coach Mitch's system.

Coach Mitch’s REFLECTIONS

A Question

In post #142, I answered a student’s question. This is a follow-up.

Mitch you are the best,  thanks a million.   would you by any chance have some recordings of you talking/negotiating with sellers so we can hear it live how this works etc?l

The Answer

While I appreciate the request, please understand that people expect privacy, especially in transactions where they are disadvantaged.  If you were the seller, would you like such a conversation to be made public?

The goal is to be the person that the seller wants you to be, so that he can feel good when giving you his property at a low price.  This takes an understanding of that individual.  It is absolutely not a cookie cutter situation.  Each person is unique and they must be treated as such.  We can speak about sales techniques in generalities, but, to be effective, you must develop the skills to know what to say, how to say it, what the body language should say, and most important, how to evoke the feelings that you want felt.

Please read my blogs.  I continually say that folks must be treated with respect, with empathy, with genuineness.  Try to help someone and be creative about it so that you can earn a profit.  That is what creates a win-win situation.

My coaching program is the vehicle that will get you into master negotiation mode, including how to put together a winning offer.  Anyone can find a motivated seller.  That is easy.  What do you do next is the real question.  Why should that seller sell to you at that low price? What makes you different from the last person who tried to buy?  Why didn’t he sell to that person? BTW, that’s a “smart question.”  The answer will give good data.

Consider calling.  It appears you have real interest and it seems that you understand concepts.  What a good start to work from.

Mitchell Goldstein

Coach Mitch

518-439-6100 until midnight EST

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February 25, 2010

A new tax collection method. Post 145

Tax delinquent real estate, tax liens, and tax deeds are a great way to invest in real estate. Pre-foreclosure and foreclosure investing is significantly enhanced by Coach Mitch's system.

Wyandotte County seeks new/ tool to collect taxes/

The Kansas City Star 2/15/10

With about 10 percent of Wyandotte County properties in arrears, the government is lacking much-needed funds in a budget-cutting economy. But leaders are proposing a new tax-collection plan.

This month, county officials asked the state to permit a plan allowing private vendors to help collect the taxes. Vendors would front the money to the county in exchange for payment once the debt — plus interest — is subsequently paid.

“Given these particularly hard times, we should do everything we can to collect money that we are already legitimately owed before we raise taxes on everybody else or cut services,” Unified Government spokesman Mike Taylor said. “We just think that’s a good policy.” …especially as delinquent taxes are expected to increase at the same time local governments brace for more state cuts.

…saying the issue is a budgeting tool and also one of fairness for most taxpayers who do pay their taxes promptly, but it could face skepticism from lawmakers who might envision strong-arm tactics used by some debt collectors.

the government is selling delinquent tax lien receivables, not the delinquent tax lien. The actual lien never changes hands, so the private vendor has no authority to foreclose. The government would still be responsible for collecting all debt, even the portion fronted by private companies.

Yet the concept gave Unified Government Commissioner Nathan Barnes strong misgivings. He said the plan would “bring the dogs out” and have private companies knocking on residents’ doors using scare tactics.

Taylor hopes the bill will pass because lawmakers have made it clear that they will likely be taking away more tax money that was earmarked for local governments.

“We’re trying to take care of ourselves,” Taylor said. “At least give us a tool that helps plug that hole or bring in some more money.”

Read the entire story: http://www.kansascity.com/2010/02/15/1750655/wyandotte-county-seeks-new-tool.html

*************************************************************************************

Coach Mitch’s REFLECTIONS

Here’s a novel concept – REDUSE SPENDING!

It is amazing that, when times are tough, legislators still see no alternative to raising taxes. They feel bad, they say, but, “Given these particularly hard times, we should do everything we can to collect money that we are already legitimately owed before we raise taxes on everybody else or cut services.”

This politician is adept at speaking out of both sides of his mouth – at the same time. First he says these are “particularly hard times.” One would think that this implies he understands and recognizes that there should be an effort to make things easier for taxpayers.

Apparently not

He apparently does not think logically because next we hear, we should “collect money …owed…before we raise taxes…or cut services.”

This legislator says, times are very hard, but let’s enforce collections or raise taxes on those very folks who can’t pay their taxes. Somehow, making things harder for US is a good answer for this jerk. Now you know why I label this kind of politician as part of the “miscreant class.”

Contracts / Obligations

I am sure that in his defense it will be stated that the county has legal obligations which each property owning citizen must pay for. It does not occur that it is these very obligations that are bankrupting the community. Why is there no clause in the contracts stating that, in times of financial crises, the payments shall be reduced or suspended, without penalty or with some adjustment?

Just Punishment

In colonial times, citizens would tar and feather someone to show their displeasure. Discipline in school was maintained by rapping the knuckles of a school child. I still remember in 1st grade, the rabbi pinching my cheek and turning it 90°. It hurt! I behaved.

In colonial times, corporate punishment was a regular event. The Army and Navy regularly gave whippings as punishment.

EXAMPLE: During the Lewis and Clark expedition, two guards were given 100 lashes each. They had fallen asleep during guard duty, while in Indian country. The entire company voted on the punishment. During the expedition, it was the only time that type of punishment was meted out.

The whip was considered just punishment. Were the folks who started our country cruel? Or, did they understand human nature. The Mafia understands that the threat of violence gets cooperation.

As part of their legal system, Singapore and Malaysia regularly cane law breakers. Do you remember Michael Fay, that young fellow who was caned with a bamboo stick for vandalism? There was media frenzy here and the penalty was reduced from 6 to 4 strokes. Why not use that same principle within our society? http://en.wikipedia.org/wiki/Caning_in_Singapore

Cruel and Unusual Punishment

Is it Cruel and Unusual to paddle an unruly school child?

As ‘civilized’ people, we don’t inflict physical punishment anymore, we just allow the victims to suffer egregious financial harm. Further, the perpetrator is thought to be acting out on his strained childhood, and therefore, he must be forgiven his transgressions. To our credit, we do feel bad for the victim. But feelings do not pay the bills. This results in very little justice in our justice system.

High taxes leads to civil unrest

I stipulate that over-taxation is today’s ‘cruel and unusual’ punishment.

The Declaration of Independence declares, He has erected a multitude of New Offices, and sent hither swarms of Officers to harass our people and eat out their substance.” http://www.ushistory.org/declaration/document/

Is it just for a man to lose his home because he cannot pay his taxes? Is this not Cruel and Unjust?

Rather, curtail spending, reduce bureaucracy, repeal laws, seek efficiencies, institute standards, and metrics, insist on competence, jail lawmakers, and corporate types who game the system, etc. Sure punishment is the road to a just society with less crime.

But, until we get to societal nirvana –

Coach Mitch’s Ridiculously Simple System shows how you can help yourself and also help those tax delinquents who want to sell their property, and move on with their lives.

Blue sky’s

Mitchell Goldstein Coach Mitch

518-439-6100 until midnight EST

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February 24, 2010

The 912 Movement's Principles. Post 144

9 Principles, 12 Values

The 9 Principles

1. America Is Good.

2. I believe in God and He is the Center of my Life.

God “The propitious smiles of Heaven can never be expected on a nation that disregards the eternal rules of order and right which Heaven itself has ordained.” from George Washington’s first Inaugural address.

3. I must always try to be a more honest person than I was yesterday.

Honesty “I hope that I shall always possess firmness and virtue enough to maintain what I consider to be the most enviable of all titles, the character of an honest man.” George Washington

4. The family is sacred. My spouse and I are the ultimate authority, not the government.

Marriage/Family “It is in the love of one’s family only that heartfelt happiness is known. By a law of our nature, we cannot be happy without the endearing connections of a family.” Thomas Jefferson

5. If you break the law you pay the penalty. Justice is blind and no one is above it.

Justice “I deem one of the essential principles of our government… equal and exact justice to all men of whatever state or persuasion, religious or political.” Thomas Jefferson

6. I have a right to life, liberty and pursuit of happiness, but there is no guarantee of equal results.

Life, Liberty, & The Pursuit of Happiness “Everyone has a natural right to choose that vocation in life which he thinks most likely to give him comfortable subsistence.” Thomas Jefferson

7. I work hard for what I have and I will share it with who I want to. Government cannot force me to be charitable.

Charity “It is not everyone who asketh that deserveth charity; all however, are worth of the inquiry or the deserving may suffer.” George Washington

8. It is not un-American for me to disagree with authority or to share my personal opinion.

On your right to disagree “In a free and republican government, you cannot restrain the voice of the multitude; every man will speak as he thinks, or more properly without thinking.” George Washington

9. The government works for me. I do not answer to them, they answer to me.

Who works for whom? “I consider the people who constitute a society or a nation as the source of all authority in that nation.” Thomas Jefferson

The 12 Values

* Honesty * Reverence * Hope * Thrift * Humility * Charity * Sincerity * Moderation * Hard Work * Courage * Personal Responsibility * Gratitude

*****************************************************************************************************************

Coach Mitch’s REFLECTIONS

Glen Beck’s idea/movement

If you have been reading this blog, you know that I am somewhat political. A representative of the 912 Movement, which is affiliated with the Tea Party movement, addressed the local Republican Party.

Amongst the items spoken about were the ideas that the 912 Movement tries to expound. If you have an interest, you can see how this movement is helping to return US to a thought process that is more originalist in constitutional thought, where the defense of life, liberty, and property is the righteous purpose of our national government; not imposing the centralized egalitarian ideology which has ensconced our government in the last 80 years.

The Principles and Values

The Principles remind me of the Boy Scout oath. It is worth reading. http://www.usscouts.org/advance/boyscout/bsoath.asp Each time I recited it I felt wholesome, clean, and worthy. The two oaths are certainly similar in theme.

I see nothing wrong with any of the Principles or Values. If you do, then think through your objection. For example:  Principle #2.  "I believe in G-d."  Even if you are not a believer, I am sure that you can understand the importance of the idea that something must be higher than man.  If man is the highest value, then man is omniscient, and there is no justification for undoing any of the wrong's that man has legally passed into law.  Therefore, a G-dhead must exist, in concept, so that man can call upon it when objecting to injustice.

If you believe that a politician is not adhering to the values listed below, then let them know how you think. Your voice does count.

I did not edit anything.

G-d Bless,

Mitchell GoldsteinCoach Mitch

518-439-6100 until midnight EST

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February 23, 2010

Bulk REO investing basics. Post 143

Tax delinquent real estate, tax liens, and tax deeds are a great way to invest in real estate. Pre-foreclosure and foreclosure investing is significantly enhanced by Coach Mitch's system.

Coach Mitch’s REFLECTIONS

Banks Are Motivated Sellers???

Banks are not usually thought of as “motivated sellers.” However, when today’s banks have such large portfolios of foreclosed properties, it is understandable that they are “motivated” to get these properties off their books.

A while back, I got a property from a bulk foreclosure sale. You can see it. It is the third picture down in the right outside sidebar; the burnout.

I have dealt with bank foreclosure officers, usually with little success. Now however, there has never been a better time to deal with banks. If you have the capital, or can get it, then seeking to make a bulk purchase can be a great ticket to a big score.

BTW, almost all foreclosure properties are tax delinquent.

Bulk REO investing take LOT’s of money.

The least expensive portfolio l have ever seen needed $100K in cash. It was for a small piece of the entire portfolio; but the $100K could get you 30 houses – in Detroit, almost certainly in the ghetto.

FYI

This is an article by a known guru. It gives basic info about Bulk REO’s. I thought it worthwhile to pass on without editing. I am not affiliated with the guru.

Be careful,

Mitchell Goldstein - Coach Mitch

518-439-6100 before midnight EST

*************

Many people are checking out bulk REO investments as a way of building some financial security in these troubling times. For the average reader, however, you may not even be aware of what bulk REO investments means, especially because REO is an acronym that has erupted into contemporary popular usage only recently. If you are one of those people who want a way to navigate the confusing terminologies behind bulk REO investing, here are the basic terminologies that you need to be acquainted with.

Bulk REOs

Bulk REOs is an acronym that stands for 'real estate owned' and is a term that is often used in the banking as well as the lending world. The process of bulk REOs is summed up in the event where a home that is placed on mortgage is placed on a foreclosure because of the homeowner's inability to pay the mortgage or other dues that have been made with the real estate used as the collateral. Bulk has been often added to the REO acronym because investment in this field is most profitable when buying REOs in bulk, since these forms of real estate are much cheaper than others and are thus best when bought in bulk, the way wholesale buying is much more efficient than choosing to purchase goods from retailers. Some institutions will not allow individual REO buying.

POF

The acronym stands for 'proof of funds' and is one of the basic requirements before you as an investor can begin your transactions to have a bulk REO package made. If you have ever bought a house, and you probably have since you are now looking at real estate as an investment option, you have probably realized that to purchase a single house alone requires the participation and help of many entities. Among those that may have been involved in the purchase of your home is the homeowner who intends to sell, you who intend to buy, a bank that may provide some of the funds that you need in order to purchase the house, a lawyer to settle the paperwork, and even an objective home inspector to act as a third party. The same goes with bulk REO investments. Because it entails much work, most banks will need a POF before proceeding.

Vetting

Otherwise known as the critical examination or assessment part of the bulk REO buying process, it is necessary in order for the bank to assess not only the POF of the person who intends to buy the real estate, but also the actual willingness of the person to proceed with the transaction. After all, not everyone who has sufficient POF necessarily has the intent, and may simply be surveying his investment potentials.

LOI

Also known as the 'letter of intent,' this is the letter which the bank will entertain once you have undergone the vetting of the POF. The LOI will indicate what your exact bulk REO investment request entails, such as what type of property you are looking for, the price range that you desire, as well as the location that you will entertain.

NCND

The acronym stands for 'non-circumvent, non-disclosure agreement' and is a document signed by all the parties involved to secure the transaction. Here, the basic premise is that all parties involved in the transaction will not interfere with the proceedings of the REO investment and that information regarded as confidential will not be disclosed.

There are over 50 terms you need to know to be successful in this business when you deal with a bank. I provide you with everything you need to get in the door and talk like a professional. I included scripts , and responses.

Check out http://www.bulkreopropertyinvesting.com

Sincerely

Duncan Wierman

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February 10, 2010

$200 offers? Ridiculous! Post 142

Tax delinquent real estate, tax liens, and tax deeds are a great way to invest in real estate. Pre-foreclosure and foreclosure investing is significantly enhanced by Coach Mitch's system.

Coach Mitch’s REFLECTIONS

A Question

Hi Mitch,

Can i please ask you, if i offer to buy there property for $200 and they ask for more money, you say YES ($1 option) don't they feel that you were first trying to trick them into selling a $100k property for $200  didnt you like lose your true trust in their eyes?

My Answer

Intelligence in all things. That includes anticipating what the other side will feel, think, say, and do.

I don’t really anticipate offering $200 for a free and clear $100K property. That is either gutsy or silly. My intention is to find out what the seller is trying to accomplish, and then I try to give it to him – in a way that I can attain the amount that I need to profit.

It is gutsy (a good thing) to make the $200 offer if you base the offer on good information. “I don’t care what I get, I just don’t want the county to get the property. I don’t care if I give the property away. Those no good %$!*&*% at the county made my life miserable and I don’t want them to get anything.” Test this statement. “But Mr. Owner, you have a valuable property here.” “I don’t care, they have made me so mad…” Don’t argue, whip out the quit claim deed and hope your pen doesn’t run out of ink. (Murphy lurks everywhere) BTW, this does happen – more than you might suspect.

OR

The property is not worth $100K. It is worth $10 to $30K and the tax sale is around the corner. This is the typical situation. The seller has tried what he knows to do, and it did not work. You are the only person showing some interest and he is disgusted with the situation; and he is disgusted with himself for not having successfully resolved the issue. The seller has divorced himself from the property. In his mind, he no longer owns it. When this mindset occurs, then the seller is open to a ridiculously low offer. BTW, most sellers who have property scheduled for tax sale have this mindset.

It is silly to offer $200 if the offer was made without information about what the seller needed, or what the seller was trying to accomplish. You don’t just say, “I’ll give you $200 for this $100K property.” That is a slap in the face. You must, must, must know the circumstances surrounding the tax delinquent’s situation. IF HE IS DESPARATE, then you can offer a ridiculously low number. Your example did not show any desperation in the situation.

Anything lower than a full price offer requires a good explanation as to why you offered that amount, if you have any hope of it being accepted. “The tax sale is in a few hours and I have not had any time to investigate anything about the property. I’m very sorry. It may be OK, but, for example, the property could have significant title issues; or something about the neighborhood might not be desirable. The company policy is to do a thorough investigation before buying an asset and we can’t do that in this case. I’m sure you understand. In order to protect ourselves, the only thing we can do is to offer you a small, token amount, like $200.” This is almost verbatim, what I said to buy a $40K house for $100, just hours prior to the tax auction. I later sold the home for $87K.

The essence of using the $1 Option is that: “I don’t want to pay you the amount that you ask, but, as long as I can make a few bucks, I will be happy to try and find someone else who will.”

Is this more clear?

Mitchell Goldstein

Coach Mitch

518-439-6100 until midnight EST

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February 8, 2010

Yes, you can make money using my system. Post 141

Tax delinquent real estate, tax liens, and tax deeds are a great way to invest in real estate. Pre-foreclosure and foreclosure investing is significantly enhanced by Coach Mitch's system.

Coach Mitch’s REFLECTIONS

I was cleaning out my Inbox when I saw an email from a client that I had missed. It bothers me that I missed a communication from a client. It galls me when a person or a company does not respond to me immediately. Therefore, I try hard to respond quickly. Good manners go a long way in showing the kind of person you are.

My answer

Barbara,

I am aghast!  I just saw your email this moment.  I’m sorry it has taken so long for a response.  In the future, if I have not answered by the following day, then email me again, or call.  A one month delay in answering is not acceptable.  I wouldn’t accept it, you shouldn’t either.

_____________

You wanted to know what it would take to do this program.

Barbara, your success will be directly tied to how well you and Richard are able to associate with the folks in trouble.  That means you will have to learn how to manipulate people’s emotions.  This often comes down to being genuine and empathetic.  Example:  The ‘formula’ or ‘script’ I used to answer your email was:  acknowledge, apologize, resolve, and emphasize.  This is empathy with a purpose.  This is a version of my favorite sales technique, Feel, Felt, Found.  Google it.

Please do not view my answer with cynicism.  I am trying to give a real world example of how to deal with people.

The first thing is to acknowledge their situation, then show some level of contrition or sadness or astonishment that the situation exists; then provide some good information, and then follow-up.  It will seem Machiavellian to some, but we manipulate all the time.  To manipulate for the benefit of creating a win-win situation is good manipulation.

The sellers are in a bad situation.  No one has helped them out of their bad situation thus far.  Are they better off if you leave them alone, to continue in their bad situation; or are they better off by moving on with their lives, even if their emotions have been manipulated a bit by you.  They win, and you win; win-win.

Yes, this business can be done.  It is being done every day, by others.  Your success will be in direct proportion to your sales ability.  Please do not think that because a person is in trouble, that they will accept any offer.  That is not the case, not at all.  Folks in trouble cut their noses off to spite their faces – all the time.  That is how they keep their self esteem.

In order for these folks to sell to you, with the terms you want, you will have to be seen as a friend, as being trustworthy, someone who will go the extra mile for them (the sellers.)  The price or the terms you offer have nothing to do with how the sellers will view you.  “Your policy is to offer a certain amount.  You’re sorry, but that is all that you can do.  You would love to give them everything that they want, but you can’t.  If you made an imprudent purchase, then you would be in a bad situation yourself.  You want to help, but you must be prudent.”  Doesn’t this sound like you are good business people and trying to be considerate at the same time?

The other guru’s say there are motivated sellers in the marketplace.  They intimate all you need do is to show up, and somehow, miraculously, the seller will give you the property for a song.  Not so.

The reality is that only 20% of salesmen make a good living. The other 80% have the same prospects; however, they do not elicit the same response from the prospect as the most successful 20%.

The reason for the coaching is to help you become the salesperson that you need to become.  Please contact me with any sales situation where you would like some help.

Be genuine,

Mitchell Goldstein Coach Mitch

518-439-6100 until midnight EST

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January 31, 2010

Fear, regret, and dreams not realized. Post 140

Tax delinquent real estate, tax liens, and tax deeds are a great way to invest in real estate. Pre-foreclosure and foreclosure investing is significantly enhanced by Coach Mitch's system.

Coach Mitch’s REFLECTIONS

The other day I sent a follow-up email to several persons who had contacted me. Here is a response.

Hi Mitch:

It is great hearing from you. I would love to chat some more.  I was not expecting to hear from you out of the blue like this.

I will try to be short and concise. I tend to be verbose I realize.  In regards to real estate, my mind does tend to change quite a bit.  I think I have felt at times, and at times come to the conclusion that real estate is not for me because of my aptitude and psychological makeup.

My answer -

It is good to hear from you again, though I am sorry that you are feeling less than sure of your ability re real estate investing.

You did not say that REI was bad, but rather that you might not be good at REI. That is a significant difference.

Might I suggest a confidence building measure? Find a mentor. A mentor in real estate investing would be best, but any mentor will help you overcome fear and pursue your interests.

Join a REIA, Real Estate Investor’s Association. Travel if you must, but find a group. This is a wonderful way to find a REI mentor. I did.

A “mastermind” group is the next best way to get serious help, encouragement, and insight. The REIA might have them set up. The Chambers of Commerce often have “mastermind” groups. Set up a one person business, pay the fees, and join in the fun. You could also go onto Craig’s List and ask if anyone wants to join a “mastermind” group.

If you have any REI training sets, you could just delve into it and do what the guru says. Just do it, even if you fail. In failing, you will have learned that you had the strength of character to try, and that you survived; therefore, you can try again.

We are all insecure. Some of us are brave enough to face the fears, and sometimes we win big. I trained a very insecure individual. We practiced what to say, what the expected responses would be, and we practiced our answers to the response, etc. We practiced entire conversations. In this manner, the student felt prepared, and therefore confident that he could approach a seller and know what to do. No matter what the seller said, the student knew what to do to counter. In his very first attempt, the student, with only $1, optioned a restaurant worth $1.6MM. Amazing!

Find help now, or feel sorry that you didn’t.

Regret is a terrible thing.

+++++++++++

Another conversation

Recently, I had a similar conversation with another would be investor. He is single, 38, insecure and lonely. The conversation turned to woman. He said that all the good woman were taken and that he can’t find one, especially a pretty woman. Usually the woman say that all the good men are taken.

Having Nerve

I had never thought about it before but, in my single days, I had always only gone out with very attractive woman. I married a beautiful woman. I’m not kidding. She stopped traffic. We’re together for 35 years.

Now, if you look at my picture, I’m no Brad Pitt. So why did I only go out with very attractive woman? The answer - because that is who I asked out. If you only ask out beautiful woman, then, some of them will say, “Yes.”

I remember one time I asked out the prettiest girl in school. She turned me down. While I was asking her out, the second prettiest girl in school walked up and listened to our conversation. Embarrassing. Apparently it got around school, because later that day, a friend teased me about it. I said, “Yes, I do like her. At least I had the guts to do something about it.” That shut him up.

I relayed these thoughts to the fellow and he understood that “having the guts to go for it” was a necessary part of life, achieving success and having some contentment. But, it is smart to go where your interest is, because that is where you will find it.

Narrow the field

I have said it before, dealing in tax delinquent property is a way of narrowing the field. You are only speaking to folks who are in trouble. That is why they are not paying their taxes. All you need do is talk to them, and see if you can help the situation.

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Coach Mitch’s famous $1 Option is the perfect vehicle to take control of property. An option gives you all the benefits of real estate without any of the responsibilities. My option has several unique traits that make it very powerful. The best part is that clauses are worded so that the seller sees the words but doesn’t realize its consequence. Even lawyers have no objections.

G-d bless,

Mitchell Goldstein - Coach Mitch

518-439-6100 until midnight EST

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January 29, 2010

Some towns NOT doing tax foreclosures. Post 139

Tax delinquent real estate, tax liens, and tax deeds are a great way to invest in real estate. Pre-foreclosure and foreclosure investing is significantly enhanced by Coach Mitch's system.

Coach Mitch’s REFLECTIONS

Michael Rady worked at the docks for 15 years to pay off the mortgage on his Cleveland home.

But when Mr. Rady was injured and could no longer do physical labor, he couldn’t find a job and had to live off savings and credit cards. Soon, he owed Cuyahoga County close to $8,000 in property taxes, and the county treasurer sent him a foreclosure notice: His house would go to auction in February.

Nationwide, many counties and cities faced with declining revenues are turning to tax foreclosures — when a homeowner is evicted due to unpaid taxes rather than an unpaid mortgage. For the most part, local officials see tax foreclosures as a necessary evil. But in some cases, tax foreclosures appear to be spiraling out of control, threatening the health of cities. Cuyahoga County, for instance, has recently reversed course and imposed a moratorium on tax foreclosures for the first time since the Depression.

In pursuing tax foreclosures, "We’re lowering the prices [of homes] and contributing to wealth destruction," says Treasurer Jim Rokakis.

It can be a wrenching decision. One Maine town is allowing delinquents to stay in their property penalty–free to avoid throwing people out of their homes. But, in many cases, local politics rules the day. Tax foreclosures are most common in municipalities where treasurers are appointed.

"If you’re elected, are you going to foreclose on people who voted for you?" says Kathleen O’Donnell, a tax–title attorney in Boston.

Historically, tax foreclosures rise when mortgage foreclosures do, says Nicolas Retsinas, director of Harvard University’s Joint Center for Housing Studies. Typically, delinquent residents pay off back taxes by selling their house, but that can be hard in today’s housing market.

No one currently tracks tax foreclosures nationwide, though a new nonprofit called the Center for Land Reform in Flint, Mich., was started last year for that purpose.

Anecdotal evidence from across the United States suggests that tax foreclosures are rising.
Tax foreclosures are up in three–quarters of Washington State’s counties, says Bob Lothspeich, president of the Washington State Association of County Treasurers.

In Michigan’s Ingham County, where Lansing is located, the number of people who face tax foreclosure almost doubled, from 822 in 2008 to a record 1,506 in 2009, says Treasurer Eric Schertzing.

Shirley, Mass., reinstated tax foreclosures after cuts in state aid forced it to lay off more than half its firefighters and shift town employees to a four–day workweek. The last time Shirley made tax foreclosures was 50 years ago. Now, 130 taxpayers in a town of 7,904 owe more than $1.3 million in back taxes and interest, some going back to the 1950s, says Treasurer Kevin Johnston.

"We’re going broke," adds Shirley selectman Enrico Cappucci, who supports tax foreclosures.

In most jurisdictions, people have several years between defaulting on their taxes and facing eviction. In Washington State, taxpayers have to be delinquent for three years. In Massachusetts and Michigan, it is approximately two years. The rules vary by state, county, or city.

Millinocket, in central Maine, does not evict anyone. The number of people who lost titles to their homes because they did not pay their taxes doubled or tripled in recent years, says Town Manager Gene Conlogue. But the town did not throw anyone out.

"We have a policy that requires them to pay rent, but we generally waive that," Mr. Conlogue says. "We’re not trying to add to people’s problems."

Neither is Mr. Schertzing of Michigan’s Ingham County. But tax foreclosures are necessary, he says. The best he can do is making it gentler than a mortgage foreclosure. "I go to some of these homes, I knock on the doors, and I talk to the families," he says.

In Ohio’s Cuyahoga County, sheer numbers preclude that approach. The county prosecutor filed 2,000 tax-foreclosure cases in 2009 — a 400 percent increase from five years ago. Tax foreclosures in the county accounted for 13 percent of all foreclosures.

This year, the prosecutor expects to file some 2,400 cases.

But delinquent Cuyahoga County home–owner Rady and 160 other residents set to have their houses auctioned in February have gotten a temporary reprieve. Treasurer Mr. Rokakis instituted a six–month moratorium on tax foreclosures a few days before Christmas. "Adding more foreclosures to the thousands of properties that have already been foreclosed is not helping," Rokakis says.

The decision made Rady, who lives on Social Security, feel "somewhat relieved." He has to raise $8,677 in six months. "I don’t know how much I’ll be able to come up with," he says. "I’m going to try."

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What does this mean for you? Well it is simple. Right now in 2010, you may want to look at towards investing in Tax Foreclosures. You can contact your local courthouse and get a list delinquent properties that have not paid their property taxes on time as well as the date for the auction that these properties will go up for sale. You can bid against the others seeking a good deal at the auction OR you can use Coach Mitch’s Ridiculously Simple System…” to contact these tax delinquents and do a deal with them well prior to the tax auction.

Best of luck

Coach Mitch

Mitchell Goldstein

518-439-6100 until midnight EST

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October 6, 2009

A political candidate asked for my ideas. Post 138

Tax delinquent real estate, tax liens, and tax deeds are a great way to invest in real estate. Pre-foreclosure and foreclosure investing is significantly enhanced by Coach Mitch's system.

Coach Mitch’s REFLECTIONS

You may recall that I am involved in local politics. I ran for County Legislature in 2007. A local town board candidate stopped by last night and asked for some input. The ideas expressed are my own and might be implemented at the local, town level.

Fred,

It was nice speaking to you. This is in response to your request for a few ideas to be used on the campaign trail. See the info re American Solutions. http://www.americansolutions.com/

Taxpayers have never been more ready for some common sense talk that offers some common sense solutions. Every suggestion creates some opposition, but creating the trend toward downsizing government and spending restrictions is the important factor.

Some ideas or themes for your upcoming debate:

Government is ‘big business’ and it should be run that way, using good management principles, seeking higher quality, at lower costs, with greater effectiveness.

Each government program must be necessary. We cannot cut off funding completely for almost anything because it would be like a heroin addict stopping ‘cold turkey.’ However, a phased withdrawal of unnecessary programs will work. Reductions should be ongoing until only ‘necessary’ expenditures are in the budget. ‘Necessary’ is to be construed narrowly and determined in an ethical manner, and not within a political construct, which would be closer to defining ‘necessary’ as a term of art. In other words, the standard is to be truthful, and to not be politically manipulative.

The guiding principles should be: Whom do we serve? What do we value? What do we want to achieve? How do we go from failure to success?

Create a permanent, independent committee for the sole purpose of rooting out wasteful spending. This effort will automatically lead to rooting out abuse; an area that will show how the Democratic Party has manipulated spending. Republican abuse will be apparent also, however Democratic abuse is current.

I would love to have the town charter amended to include the elected Office of Public Integrity. The public could then vote for the person they think would be the best defender of the public’s interest. The fact that 33% of governmental budgets are waste, fraud, and abuse, proves that the current system does not work. TARP is only the latest, good example. Were I at the Constitutional Convention, I would have proposed this idea as the 4th full branch of government. This is the only way to effectively, “bind them with the chains of the Constitution” as Jefferson said. This pre-supposed a Supreme Court that wished to be bound.

Increase coordinated volunteerism with tax breaks and incentives. Volunteerism is the least expensive way to provide services. If we can give incentives to Wal-Mart, we can give incentives to volunteers. The volunteer firefighter’s incentive program is one model, although not nearly good enough. The towns’ Senior Program is doing a good job and is a good recruiting model. A local coordinator was hired at about $42K and she has found 250+ volunteers whose total volunteer man hours were over $350K, equal to 12 fulltime employees. WoW! Get current numbers from them

The town’s Library taxes as much as the Highway Dept. Roads are necessary to go to work and to push economies; libraries are not quite as important. Apply the volunteer model to the library. Addressing the libraries BOD, I gave a comprehensive list of ways volunteers can be involved. This would probably eliminate several jobs or at least not have a need for new hires; however, it means that empire building will end. Budgeted book purchases were $250K, but employment costs were millions. When I grew up, the towns’ library was run completely by volunteers. BTW, libraries do not band together to buy product in larger numbers, to reduce per unit costs. This could be required. The library pays enormous prices for inventory, but will not put on the shelves any donated books, movies, tapes, etc. They say the library has higher quality needs than books made for the public. I asked, “If 10 books of a particular title were donated, what does it matter if some become tattered – throw it away and ask for more donations?” They had no answer. The library sells ‘overstock’ for 50 cents. I suggested volunteers could store the overstock until needed. Everything is computerized. A volunteer could be emailed that a certain title is needed. Citizens doing public service sentences could be putting books on shelves, as could volunteers, etc.

The Highway Dept can look to save tax monies by reevaluating standards, schedules, and only doing work when needed. Example, my entire street was recently repaved. There was almost no damage. There were only a few cracks around a manhole cover and I asked a worker “Why are you repaving when the road is fine?” He said, “It was in the schedule. We do it every seven years, whether it needs it or not.” There may be good reasons for this schedule; I don’t know the consequences of waiting, but it seems wasteful.

Extend the edge of the road by 3-5 feet to create sidewalks/bike paths. An oft heard request is the desire for sidewalks. Sidewalks are expensive and a large part of the cost is the “takings” process. A swath of land must be “taken” from a homeowner and paid for. Instead, level and blacktop 3-5 feet from the edge of the road to the utility pole. This necessitates only needing to get the rights-of-way from government controlled entities, like the utility company, who already has the right-of-way. Little, if any, new homeowner land would be needed/used that does not already have a right-of-way. This is the most cost effective way to create sidewalks.

Ask town employees for their ideas. This is the best way to find efficiencies. All management manuals endorse including employees in creating priorities, in making decisions, in implementation, etc. Bonuses should be paid for implemented ideas. A percentage of the savings can be put into a fund to increase town employee salaries.

Citizens should be actively asked to participate in town committees. I’ve seen the websites of some towns that openly list the committees needing help. This is not done in Bethlehem. Committees are handpicked by the Supervisor, who can stack a committee any way he chooses. Tax incentives could be a basic persuasion technique. However, “democracy” requires participation. People respond to a higher calling. If the Supervisor or Town Board Member asked a town resident to participate, it would be like a call from the President; few citizens would decline. Imagine if a rolling 5% of the town’s households had a representative on a town committee. That’s over 700 volunteers doing the town’s work.

The town’s volunteer coordinator could be the central repository of the town’s volunteering needs. Religious groups, fraternal organizations, clubs, etc. could seek volunteers for activities from the town’s pool, and once volunteers are familiarized with that organization, it would increase the organization’s membership.

An independent citizens committee could be responsible for making recommendations. The committee could be open to any town resident who wants to participate, including students.

Decrease property taxes by 25% over the next 4 years. This is done by instituting metrics, incentives, rightsizing, increasing volunteerism, allocating resources well and reducing abuse

Bethlehem has more police per capita of population than any other town in the county. A first goal would be to bring the Police Dept into line so that Bethlehem is at the bottom of the list in the number of police, instead of at the top, as measured by per capita population.

The Police Dept should not have the “Volcanator” mentality. I’m told this local officer gives out 3000+ summonses per year. The ticketing process is used as an additional source of taxation to fund the police. This disconnects the police from the very people they are meant to serve, and is antithetical to their purpose, namely, to defend a person’s life, his liberty, and his property. One reason ticketing offends people is because it is so obviously a town funding source. If someone is hurt, then the offender can be punished - significantly. If someone is not hurt, there is no logic for punishment, despite the assertion that there is a ‘potential’ for hurt. Potential is not actual. Rather, have a straight-forward Police Tax, just like the sewer, water, library, or highway taxes. Then people know what they are paying for and ticketing can be reduced so police can concentrate on real crimes.

In order to bring in businesses, have the Zoning Board adhere to the original intent of the founders and the NYS constitution. Government is created to ‘defend’ a citizen’s life, liberty, and property. This means that government is supposed to ‘defend’ almost all incursions against a citizen’s property, including incursions by government. In Vermont, a law declares it is state policy for ‘mountain scenery’ to be ‘protected.’ Almost all applications to expand or improve a property are denied. A family must get special permission from the state to improve its home when a new baby arrives, or when a company wants to expand, etc. I’m told that a local zoning board member did not allow McDonald’s to use its corporate colors because it offended the member. A taxpayer I spoke with was not allowed to add a garage because none of his neighbors had a 3-car garage; this, despite all the neighbors saying it was OK with them. The abuse goes on. Allow businesses to run their business and risk their capital, instead of seeking policies that punishes entrepreneurism. High standards will be maintained IF sure punishment is meted out when someone is hurt. The principles of tort law will defend us, if adhered too.

Require the Building Department to ticket upon actual harm rather than on potential harm. I had a code enforcement officer tell me, “I saw a few drops of water in the attic, put on a new roof.” I was informed of the penalties if I didn’t comply within 30 days. Speak to any landlord to learn of the inequities pursued against land owners. At the least, have a grievance process with penalties for abusive building officials.

Taxpayers can be shown how to grieve their property taxes properly. I gave such a class with Jared King. When walking, voters remembered our advertisements and we thus accrued a good deal of credibility. I seek for taxpayers to pay their correctly determined, fair amount of tax. This will not reduce total taxes, but it will make citizens feel like they got a square deal and you will be on the side of the angels.

Schools take 61% of the budget. I’m told teacher’s salaries are about 97% of the total, although I have not verified this. If correct, that is outrageous, especially for the product that we get. Compare the Bethlehem student, not to other capital district students, where they fare well, but to Korean, to Singaporean, German, or even to Romanian students. US students must take a year of remedial study when going to Romanian colleges, a third world country. When comparing to other industrialized nations, our students fail miserably. http://4brevard.com/choice/international-test-scores.htm Private school teachers are paid less but achieve better results. Public school teachers are a product of their education, which has a particular point of view and agenda. Salaries should be structured to meet free market standards. Reduce public teacher salaries to those of private schools, and raise their salaries when our students achieve results like their international competition. Turn to a full year school schedule, without raising teacher salaries. This will have the most profound educational effect. Specialized volunteer tutoring can be instituted within each neighborhood. A committee could read the books being suggested for appropriateness of material. When the argument occurs, “Well, what standard is going to be used?” the answer is, “An appropriate standard that is aimed at creating good scholarship and creative, critical and independent thinking, and to, at minimum, be at the same level as international standards.” There is ample evidence that our education system is flawed. The BOE would be held to the same standard as other government officials. The teacher’s and administrator’s unions would be viewed as ‘special interest’ groups with the suspicion that this implies.

Endorse the creation of a Civics course, to be taught at each grade level and to the general citizenry. The fundamentals of Constitutionalism would be the curriculum. “Originalism” would be taught, as well as it’s opposite theory, the “living document”, the currently predominating view. As a “living document” the philosophy of ‘no philosophy’ rules, and anything can be justified, making the constitution moot and resulting in Statism. With “Originalism” the presupposition is that your population is morally based, allowing a philosophy of maximum freedom, and that there be only enough government sufficient to create some order and comity, so as to prevent anarchy. Let the better philosophy win. In an honest contest, there is no contest. I find it interesting to note that, at the time of the drafting, the founders and the voting public knew about the ‘Rights of Man’, and felt such confidence in the presumption that all succeeding generations would know these obvious ‘truths’, that the founders did not feel the need to write them into the original document. The voting public, however, did not trust government (men) and thankfully insisted in their inclusion. I cannot imagine the sort of Statist entity we would now have had the Bill of Rights not been included in the Constitution. I would also like to see a ‘Life Skills’ course. This would entail letting seniors know about those basic needs of every citizen, balancing a checkbook, the proper way to count change, understanding the vagaries of credit and how to get and read a credit report, types of interest, certain basic legal principles, basic contract law, tenant’s rights and responsibilities, preparation to get a loan, car insurance, saving money and the miracle of compound interest, the philosophy of community involvement, basic morals and ethics, etc. When a Rotarian, I suggested a course of this type, to be sponsored by the Rotary. My local chapter was excited by the idea. Of course, it was promptly turned away by the school.

A Micro Loan program could be instituted, like an SBA, with the aim of helping create a town of successful entrepreneur’s. Nothing could be better than to have less of a ‘state worker’ mentality and more of the independent thinking of a successful entrepreneur, who, like the pioneers, banding together to help a new resident erect their home or barn or gather their crop, know that their success is due, in no small measure, to their fellow townsfolk. This would build comity and community.

Advance a “Wise Use” agenda for the environment. While some regulation is appropriate, http://www.heartland.org/full/16832/Can_We_Afford_To_Squander_Our_Resources_Through_Our_Reliance_on_Junk_Science.html , we must also have some appropriate oversight. I am reminded of a conversation I had with a businessman who was not allowed to build a significant new facility, losing 100’s of jobs, because a young, over enthusiastic bureaucrat viewed a bit of water on the construction site as a “pond” housing pollywogs. The entire site was shut down to ‘save’ the environment. I was told by a building inspector that I had to put in drainage piping, costing over $5000, because rain water was accumulating in a 3’ ‘pond’ and “could create a hazardous condition.” He only backed off when I proved that the water had been absorbed into the ground within 24 hours, eliminating the ‘pond.’ This is government run amok and is very, very common.

Create an Oversight Commission, to review decisions made by government officials. It could Sunset upon a citizens referendum every two years. Residents would sit in judgment of government’s decisions and decide if they are fair, just, and appropriate. Monies would be allocated to bring suit. After three egregious violations, an official would be retrained or relieved. Suitable protections can be built in for those suggesting that we are overturning lawfully constituted officials, but I am mindful of the Declaration of Independence, He has erected a multitude of new offices, and sent hither swarms of officers to harass our people, and eat out their substance.” As Pogo said, “We have met the enemy and he is US.” Government must be held accountable. If government will not defend people, then people have the right to defend themselves. Politician’s who think otherwise are on the wrong side of the history yet to be made in America.

Join with other towns to create a united front in opposition to unfunded mandates at the state and federal level. Encourage our state and congressional legislators to not vote for items outside of the Originalist constitutional construct, i.e. how Madison and Jefferson viewed ideas. Create the educational information showing legislators why and how a proposal is not Originalist. Propose that legislators retract law that is not conforming to Originalist constitutional precept. This is especially important as I am told that we are potentially on the verge of having another constitutional convention. Only two more states are needed to ratify for a national convention call to be required. Who knows what havoc will ensue when radical liberals have their mandate to “fix” US. G-d was good to US once, when he brought together men of character, who created a system where free men could advance on their merit. Will he again shine his countenance, or will radical egalitarianism prevail, to the detriment of all, excepting the few in charge? What then will be for the US, “the last, great hope of mankind”?

These thoughts are just off the top of my head.

I don’t really care about the political realities. My goal is to endorse that which I believe is good, righteous, and just. I want my elected officials to live up to the oath that they took; to uphold the Constitution.

If a legislature passes something that is not constitutional, or if a judge upholds something that is not constitutional, it is incumbent upon an office holder to object and do what he feels is just, despite any consequences. An office holder’s obligation, or the duty of any citizen, is no different than that of a solder, i.e. to do that which will defend the constitution. Just like a solder, who is obligated not to follow an extra-legal order, a citizen should also act when confronted with a corruption of the constitutional ideal. Hamilton created the Bank of the US and the NY Stock Exchange; great achievements rife with the potential for corruption. Yet, Hamilton felt it incumbent that, as a public official, he hold himself to the highest ethical standards, and was never accused of any dishonesty when building these institutions. That, Hamilton felt, was the public due.

As regards your upcoming candidates debate, pointing out a few missteps in the budget will get a few points, but folks have heard it all before and they are inured to these nostrums. However, if in the few minutes you have, you are able to espouse big ideas, then you have a chance to excite people. People will follow someone, even a political unknown, who offers, “Change you can believe in.”

Good luck.

Mitchell Goldstein

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