Tax delinquents are wary of investors who might take advantage of their situation. Post 20


Coach Mitch’sREFLECTIONS™

I have found that when trying to invest in property that is tax delinquent, the techniques vary according to the length of time to the tax deed auction.

The shorter the time to the tax deed auction, yes, the more desperate the tax delinquent becomes. However, there are many circumstances to keep in mind when dealing with someone who is about to lose something valuable.

If the owner is living in the home and is about to lose it because they cannot pay the taxes, then that person is really in a desperate mode and you can easily take advantage of them because the tax delinquent has divorced themselves from the property.

The owner no longer has any realistic hope of salvaging the property and the only way they can deal with the pain is to go into self-defense mode. This allows the owner to no longer feel that the property is theirs.

The pending property loss and eviction is so highly charged that people are not thinking clearly. They are reacting to anything they view as suspicious – quickly, and with a purely negative emotion.

These folks are the prime candidates who may sell you the property for very little. But, you can easily cause them to see you as a calculating charlatan. If that becomes the case, then you will get nothing.

These people are in a serious situation. They will resent you for even trying to “take advantage” from their misery. Their first impulse will often be to cut their nose to spite their face. The tax delinquent feels, if they cannot save the property for themselves, then why should you make anything?

Tax delinquents will ask you to lend them the monies to pay the taxes. And why shouldn’t they? Even though you are a total stranger, you obviously have enough money to make investments. It is a shot in the dark. Remember, a drowning person reaches out for a twig. They have nothing to lose by asking.

You can lend them the monies to pay the taxes. This is a good way to get a mortgage against the property. Know that you will almost certainly not be repaid and you will have to expend monies to attorneys in foreclosure fees and you will delay owning the property for up to one year.

In my opinion, there are other, much more effective ways to deal with the situation. Ways where you will own the property and the owner will get what they want – to stay.

Or you can provide monies to help the unfortunate tax delinquent move to the next phase of their life. This is the best situation. It is one that I try to teach my students to work. It can be somewhat tricky but it is the most lucrative.

The prerequisite is that you must be very convincing that you really want to help the person. This is done by listening to their plight of woe.

You must be very empathetic. This is done by asking questions and quizzing for details. You cannot be seen, or even thought of, as someone who is trying to take advantage of their situation.

If you express the right thoughts, in the right order, with the correct body language and facial expression then at least the tax delinquent will listen. But if there is a hint of insincerity, then they will smell it and all will be lost.

BTW, being empathetic is the best quality that you can develop. It will help keep you grounded so that you will think twice before making a ridiculous offer to a person in need. That doesn’t mean you will offer more, it means that you will be more sensitive to what the desperate person really wants.

See Coach Mitch’s“Ridiculously Simple System…” ™ for details.

Good luck,

Mitchell Goldstein - Coach Mitch
518-439-6100 until midnight EST
www.CoachMitch.com

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