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How To Find Off Market Deals From Tax Delinquent Properties

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In many markets right now, it can be really difficult to find quality deals through the standard real estate agent / MLS channel.

In fact, it’s so difficult that many investors have moved away from the MLS entirely for now.

There are a hundred ways to find deals off-market, but the easiest ways are through a real estate investor website, and direct mail marketing.

Today, we’re going to focus on direct mail marketing to tax delinquent properties.

Before we dive into how to find tax-delinquent property lists, let’s chat real quick about the basics of direct mail marketing.

The Basics of Direct Mail Marketing

In general, you want to find two or three channels where you source deals, then perfect them.

That advice is nothing new, but it’s also amazingly broad. For example, there are dozens of different types of direct mail options available. So, within this category, it’s best to niche down to a couple.

Here are a few that come to mind:

  1. High equity owners
  2. Absentee owners
  3. Properties with building/health code violations
  4. Tax delinquent properties (the topic of today)
  5. Probate properties
  6. Divorce

You get the idea.

Once you’ve chosen your niche, it’s time to build your mailers.

Creating Your Mailer

This is probably the easiest part but also the hardest.

It’s easy, because it doesn’t matter as much as you think. It’s hard because you think it matters more than it does!

It’s best to be professional, polite, put a picture of you on it, and give your contact information.

Be succinct and let the person know what you do.

It’s really that simple.

Sure, you can tweak it over time to see if different versions of a letter get a better response rate. But, the key for now is to just send something!

Consistency is Key

The biggest problem new investors face is lack of consistency.

Many people will send out a big blast, get disappointing with a 1% or 2% response rate (which is good actually), and stop mailing. But, the best deals won’t come until you’ve built up some kind of rapport with the potential seller.

That’s why you need to mail them over and over again, so your name becomes synonymous with a quick sell!

So, send a follow up letter or postcard, and don’t forget to reference the first letter. Tell them “I sent you a postcard about a month ago and I’m still looking to buy. I’d love to look at yours so give me a call.”

If you get no response, mail them again!

Commit to sending between 5 and 7 mailers to each address over 1 year. That is roughly one every other month.

How to Find Tax-Delinquent Properties

Most cities or counties will have a tax sale from time to time. Some do it monthly, quarterly, bi-annually, or even annually. The key is to learn how your city/county works with their tax sales, and adjust your strategy accordingly.

The next step is to get access to the list of tax delinquent properties. In some places it is available publicly from the city or county. In other places you’ll have to mine the information from online records.

In general, though, there are list providers in every state that do the legwork for you to find properties that are delinquent on taxes, and you can just buy the addresses. These can cost anywhere from 20 to 50 cents each in most cases depending on how much information you can get.

Once you have the addresses in hand, it’s time to send them your first letter.

Mailing to Delinquent Tax Lists

Remember, the owner could potentially lose their home to the tax sale, depending on how the state runs it. They should have been getting notices about it too, so they should be aware of the situation.

If someone like you comes in and gives them the opportunity to earn a little money rather than just lose their house, they’ll probably give you a call.

Letters should be straight forward and to the point. Tell them you are looking to buy and you want to buy now.

Postcards pretty much always get read, so you should convey a sense of urgency to them. Let them know you only have enough money to buy one property, and you want to close fast.

Humans are hardwired to take action when there is a sense of urgency, so you’ll get more calls if you convey that sense of urgency.

Talking to Delinquent Tax List Property Owners

When a delinquent tax owner calls you, it’s important to ask them about their situation and not their property.

Then, let them talk.

DO NOT INTERRUPT!

You should simply say things like “mmhmm” or “and then?” to keep the conversation going. It’s a sales trick. Most people will talk if there is a pause in a conversation. So, by being quiet you are forcing them to do the talking.

As you’re learning how to talk to tax-delinquent property owners, or any other seller for that matter, silence is key. You want them to tell you the problem and give away what exactly they are looking for. So, just stay quiet and take notes.

Once they’ve given up all their secrets about their motivations, it’s time to ask about the property. Ask them:

  • What is the property worth in perfect condition?
  • What price are you hoping to get?

These two questions will help you know their motivation level.

If the property is potentially worth $200,000 and they want $185,000, then they probably aren’t that motivated.

On the other hand, if their tax-delinquent property is worth $200,000 but they are willing to take $110,000, you should follow up by asking when you can go take a look.

While it may or may not be a good deal, at least you know the owner is motivated enough to give a big discount. If the price, amount of work, and after repair value all work out, then you might have a deal on your hands!

Following Up Is Important

Most of the time it won’t work out, and that’s ok! Often, the seller just isn’t ready mentally to part with their property.

I remember once I made an offer on a 10 unit property for $500,000. The seller said no way.

4 or 5 months later I found a wholesaler advertising the property for $520,000. You know that wholesaler was taking $20,000+ on a deal of that size, so the seller was getting $500k or less for it.

I thought it was kind of crazy, because I had just offered that amount. The reality is the wholesaler followed up and I didn’t.

The seller wasn’t ready to sell at that price at that point. But, after a few months they were and I wasn’t there to get it.

So, make sure you are the one to follow up!

This article originally appeared on IdealREI. Follow them on FacebookInstagram and Twitter.

Business

How Big Real Estate Moguls Avoid Taxes (And How You Can, Too) 👀

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I was looking around Google for an old article on tax strategies and this five-year old video of myself happened to pop up.

I’m interviewing a tax expert about how real estate investors avoid paying taxes in perpetuity—AND how everyday citizens can do the same thing.

(Real estate—our TEMPLE I and TEMPLE II projects included—has a number of tax benefits savvy investors have capitalized on for years, including Opportunity Zone breaks and 10-year tax abatements.)

There’s the 1031 exchange, of course, which I’ve shared with you guys before. 

Just to refresh your memory, the 1031 Exchange allows you to roll over gains from your last project into a new property TAX FREE—as long as said property is worth the same or more.

But there’s ANOTHER TAX LOOPHOLE that can take your portfolio to an entirely new level by splitting your capital gains into MULTIPLE properties.

So I thought I’d share it with you guys. 💎

You can check it out here.

Let me know what you think. 😎

PS: In our next update, I’m going to break down how real estate moguls get paid from their properties…tax free. 👀
PPS: If you want to learn how to implement generational wealth strategies like this one, you can join our NYCE wealth academy (TRIBE U) here.

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Business

How I run a $300M+ business from the beach…(and how you can TOO!)

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Yes, you read that right.

If there’s anything the pandemic taught us, it’s that the paradigm of “office” and “workspace” has been shaken to its CORE.

Universities are teaching via Zoom, court dates are done virtually, FULLY REMOTE businesses are valued at $1B+, and legitimate Inc. 5000 startups are run from…wherever. 📲

This is my office for the day…

I am actually running our business from the beach, typing this from here.

It’s 4:28 pm CET, which means it’s 10:28 am EST and I am CRUSHING my to-do list.

(And the team will continue to crush it while I’m asleep. That’s the 🗝)

So how did we get here? 

We launched NYCE and our mission to create 100,000 millionaires in March, 2020…just as the global COVID-19 lockdown happened. 😳

As a result, we shut down our main office and set EVERYTHING up to run remotely…

SMOOTHLY! And a system that allows us to outperform competition by 200%. (You can build this system, too. More on this in a second.)

Here’s what we were able to do since then:

  • Gained 6M+ followers across all platforms 📈
  • Add 1500+ new apartments to the portfolio 🤑
  • Grow to $300M in real estate 🚀
  • 105% investor returns 🎉
  • 700K+ community members 🤝

And here’s the best part…

Having team members in all the main time zones gives us a 24-hour work cycle vs. 9-5/eight-hour on-the-clock performance.

This means we get 3x the productivity of a similar company. 🔥

Let me repeat that…3x PRODUCTIVITY vs. our competitors.

Meanwhile our project management software grants us 24-hour TEAM-WIDE connectivity that tracks all tasks and lets us know if productivity dips even a little bit.

There is ALWAYS someone senior awake. It could be Martin in Barcelona…Nat in New York…Vineet & Arif in New Delhi.

All the while giving YOU GUYS wealth hacks and daily content. 🔥

OK, so how can you do it?!

Well, the first step is to have an actual side hustle you’re launching. Not just an idea, a validated business.

MAJOR KEY: Do NOT spend money until you’ve made your FIRST DOLLAR! 🗝🗝🗝🗝

(You can catch a replay Business Launch masterclass here and see TRIBE member Nessa launched her business on the spot and got her first $45K client shortly after.)

One of the easiest ways to start is with Airbnb—you can start that in 10 minutes. Literally. (Here’s a guide if you need it.)

Once you have your business, you build a virtual infrastructure (you really just need two softwares, which are FREE), manage the team accordingly and run the business from there.

I’m gonna put together a step-by-step video breakdown this weekend inside the new TRIBE U on the FIVE key things you need to do this for YOURSELF. 💵 💎

From what software to use, how to build a team, how to keep.

In the meantime, drop a comment if you’re ready to build some wealth and any questions if you want more…

Let’s get to work. 🙌

PS: If you can’t be bothered with video and just wanna get to work, we’re hosting a TRIBE U workshop that will help you get this process started on the spot. It’s $479 $49. 🔥

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Real Estate Investing

Here’s Why You Need To Use A Mortgage Broker When Buying Your Home

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Would you like to build or buy a home today?

There are many factors that you should consider. You will note that earlier on, most people used to visit banks in order to get loans that could enable them build or buy a house of their dreams. This used to work well for some people.

However, others used to have a difficult time securing loans. This is because some banks used to charge higher interest rates. This normally discouraged these people. This is the reason why you should consider using a mortgage broker.

What are the advantages of working with this broker? These include:

1. Enable you to Save Money

Would you like to save more money when you are buying a home? You should consider using the services of a mortgage broker. You will realize that this broker can help you compare several home loans from dozens of lenders.

You will not be dealing with one lender only. The good news is that you will be dealing with different lenders. This can help you get a good deal in terms of interest rates and fees.

This can play a major role in helping you save more money.

2. Saves Time

The process of getting a home loan can be very tasking. You have to visit different lenders so that you can compare their interest rates. Sometimes, you might not have all this time. You might end up choosing a lender who charges you more interest.

If you want to save more time, you should consider using the services of this professional. The good news is that this professional will do most of the work for you.

This will include the following activities; liaising with conveyances, real-estate agents, lenders and even settlement agencies.

3. More Peace of Mind

Securing a good mortgage loan can be very hectic. Most people normally struggle to secure these loans successfully. This can make you not to enjoy some peace of mind.

However, the good news is that this professional can help you secure a good loan successfully. You can trust that he will go for the best option out there. This can help you have some peace of mind as you will be doing other activities either at home or at the workplace.

You will realize that this professional will stay in contact with you to check if you have the right mortgage from the right lender.

4. Little Chances of Refusal

There are people who normally apply for a mortgage loan and are denied this loan. This could be due to their credit score, among other factors. This can be detrimental. You are likely to get frustrated.

Some lenders are very strict. However, there are some who are lenient. This is because different lenders normally have different credit policies and restrictions regarding who they will lend to. This is the reason why you should choose this broker to help you out.

This broker will considerably reduce the chances of refusal because he has vast knowledge on lender policies. He will help you settle for a good deal. Thus, an increase the chances of you building or buying your dream home.

5. Professional Advice

You can trust that this professional will help you understand all the mortgage-related information. He or she will help you understand the numerous types of mortgage available out there.

You will note that each of the mortgage types normally has its own parameter and technicalities. This can actually be very confusing to the common man. This mortgage broker will help you sort out all this information and also explain the different types of deals available in the market.

The good news is that this expert will help you narrow down the information to finally choose the mortgage that suits your needs. Sometimes, it is difficult to understand all the legalities that are related to mortgages.

However, this professional will give you professional advice in this field. This can help you avoid certain pitfalls since you will be fully aware of everything that you must know.

6. More Convenient

We all like convenience. The good news is that the professional will work hand-in-hand with home loans and lenders every day of the week. You can trust that this professional will assure you that the entire process will go smoothly and successfully.

7. He Represents you

The good news is that the mortgage broker normally represents you. You can trust that he will work on your behalf and not on behalf of a particular bank.

He will work with different lenders to ensure that you get the best deal out there.

8. You do not have to Pay this Broker Directly

You will realize that you do not have to pay this broker directly for their services. In most cases, they are normally paid by the financial institutions that arranged your mortgage. This makes it ideal to work with this broker.

The mortgage broker normally works for you. He is independent and can help you navigate the often confusing world of mortgages. He or she will work on getting the best deal for you.

This is because dealing directly with the companies can be hard. Some of them might not have the best interest in mind. This is the reason why you should consider using the services of a mortgage broker.

In addition, he or she will help you save more time in the long run. You can carry on with your usual activities either at home or at work as the broker works for you.

You will even manage to save more money. Consider hiring the services of this broker, and you will not regret. The services of this broker are truly incredible.

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