Oscoda Press

State to sell 107 tax-foreclosed Iosco properties at auction

July 3, 2012

LANSING MI – The will be 107 Iosco County parcels auctioned off during the Michigan Tax-Foreclosed Real Property Auction, to be held Tuesday, Aug. 14…All the parcels were forfeited after the owners failed to pay property taxes. Some of the properties contain homes; most, however, are vacant.

The current tax foreclosure process extinguishes all rights of former owners of interest, including taxpayers, mortgage companies and banks. The only liens that survive foreclosure are those filed by governmental agencies in relation to the Environmental Protection Act.

Any parcel not sold in August will be offered again before the end of November at the “zero sale,” at which the minimum bid is set at $50. A full list of the properties are available on the Michigan Department of Treasury tax website. Go to www.michigan/gov/taxes and follow the links for tax forfeiture and foreclosure.

See the full story: http://www.iosconews.com/oscoda_press/breaking_news/article_e740b068-c525-11e1-83e1-001a4bcf887a.html

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Coach Mitch’s REFLECTIONS™

 

Due Diligence

Do you know what this means? In real estate investing, due diligence means to check all things relevant to a real estate purchase so that nothing prevents your plans or dilutes your profits.

Other words for diligence are: industry, meticulousness, thoroughness, attentiveness, carefulness, persistence, conscientiousness. All these nouns are what your family expects you to do when seeking to invest for the families’ future. After all, is that not the least they can expect from you? Surely, thoroughness is the standard your family is due.

Question?

How are you supposed to do proper due diligence on 107 properties in six weeks? I’m serious. Think about it. The good part is that six weeks is about double the usual three weeks a taxing jurisdiction gives the public when announcing a tax sale.

Time

Let’s pretend that you saw the tax lien auction advertisement on the first day. That give a maximum of six weeks or 42 days to do all the necessary work. You will need to investigate 2.28 properties each day. How are you going to do that, especially if working a full time J.O.B. (just over broke)?

How are you going to investigate the neighborhood, the crime, the employment situation, the transportation systems, the shopping, the schools, the other competitive property for sale, talk to the neighbors, walk through the property, do a proper home inspection, estimate repairs and renovations, get to know the owner, negotiate, etc., and do all this for all 107 properties?

No Time = Danger

There is no time to do all the due diligence needed for all the properties. That is why buying at a tax auction is dangerous – yes, dangerous.

The gurus all shout that tax delinquent property is “safe.” I agree, IF you’ve done your due diligence.

The gurus all shout that tax liens “are guaranteed” and you seemingly can’t lose. Nonsense! The tax lien sales are much more dangerous than the tax deed sales.

Think it through

The tax lien sale typically offers many thousands of tax certificates at an auction. If you cannot properly investigate 107 properties in 42 days, how are you going to do any semblance of due diligence when the typical tax lien auction list is only advertised for 21-30 days prior to the lien sale? Don’t forget, you may have to investigate 1000 tax liens, or 2000 tax liens, or 5000 tax liens? It is ludicrous to even think that you can make a truly safe purchase.

Are there ways to mitigate the danger – YES. But, to mitigate is to reduce, NOT to eliminate. When investing for your families’ future, you need to be sure.

The answer is time

The beauty behind Coach Mitch’s “Ridiculously Simple System…”™ is that you can contact the tax delinquent well before the tax auction.

How much time?

Imagine if you were to contact the tax delinquent owner a full year or more prior to the tax auction. Even with all that extra time, although you are not rushed, the tax delinquent knows that the tax auction clock is still ticking. Their problems are real and need fixing.

By contacting delinquent owners well prior to the tax sale, you have time to speak to the owner, you have time to find their hot button and determine a solution and your interest. You have time to investigate the property, the neighborhood, competitive property, and you have enough time to have a qualified contractor estimate repairs or renovations, plus anything else you want to investigate.

With extra time, you can make a definitive choice about which property you want to put your monies into rather than be rushed and harried into making a potentially poor selection.

Time provides options

With all this extra time, you can even employ one of the best solutions in the real estate investing toolbox, Coach Mitch’s “famous $1 Option.”™. If the seller wants too much money for the property, Coach Mitch says, – Just say, “Yes.”™ and employ the “famous $1 Option.”™. The most you can lose is $1, but you have the potential to earn many thousands by taking control of a piece of property, and with the luxury of time, you can sell that property and give the owner what they want. The full instructions are in the manual, including the various options, clauses and proven scripts.

I’ve never lost a penny in real estate because I don’t take chances; I only bet on sure things. The best situation in real estate investing is being able to lower your price to sell because you purchased at a still much lower amount. If buying/controlling at well below market, it allows for an easier sale at just below market.

Do things right,