Real Estate Investor · NH · Member since 2011 · 6 posts · 1 vote
Stacy Kellams just released his new program called Tax Sale Arbitrage. From what I can tell, it deals with finding people with unclaimed funds and then collecting a finders fee for getting them the money. It sounds interesting. Has anyone had any experience with this method? He's charging $1000 for the program. Thanks.
So say I discovered the homeowner that lost his house to tax lien foreclosure and is now entitled to $500 overages. I reach out to the person and say - "hey, I know you're entitled to $500. I can tell you how to get it for 25% fee". Naturally, the person will want to know what am I talking about, but I won't say where the money is, cause if I do, they will get it themselves. it will take a lot of selling and persuasion to have the person sign the agreement without telling him where the money is. IMO.
George P -- why would you ASSUME that I'm affiliated with Stacy? The fact is I got an email from Phill Grove, who is promoting Stacy's program. I watched a couple of his video's and I found it interesting. BUT, before I spend $1000, I would rather do some research on the guy and get advice from this community regarding his method. What is wrong with that? I have never heard of Stacy before getting Phill's email. Please don't discredit my post because I've only been a member here for a couple weeks.
Stacy Kellams's course is actually just Virtual Courthouse Riches, plagiarized. If you want the real course from the people who actually have done the business, buy that one. It's the same price and Kellams is probably going to be sued and have to take down his site so unless you want to have nothing to show for $997 I'd stay away from that course. google Virtual Courthouse Riches or Hooked on Overages
So say I discovered the homeowner that lost his house to tax lien foreclosure and is now entitled to $500 overages. I reach out to the person and say - "hey, I know you're entitled to $500. I can tell you how to get it for 25% fee". Naturally, the person will want to know what am I talking about, but I won't say where the money is, cause if I do, they will get it themselves. it will take a lot of selling and persuasion to have the person sign the agreement without telling him where the money is. IMO.
"Kaiser admits that if the property owners knew about the
overage, they would never agree to allow him to collect it. Accordingly, Kaiser never
fully explained the overage addendum to the property owners and any disclosure about
the overage is buried in other contractual boilerplate."
"In one example of an overage play transaction, Michael and Patty Radvick
contacted Kaiser to help them avoid the tax sale and keep their property. Kaiser paid
the Radvicks $500 and the Radvicks agreed to enter into a purchase and sale
agreement and execute a quit claim deed to Kaiser. Kaiser did not pay the delinquent
taxes as promised; instead, he let the tax sale proceed. After deducting unpaid taxes
and fees, the sale generated an overage of $37,994. Kaiser used the quit claim deed signed by the Radvicks to collect the overage funds."
Now, that Kaiser is (according to http://www.pushedtoshove.com/scam-i-am/ ) "permanently banned from transacting with owners in any type of foreclosure, and permanently banned from transacting to recover overages from former owners whose properties were sold at tax sales", he decided to teach others to do it. For only $20k he will teach you every con-trick from his book.
What a country!
George, I don't know Joe personally so I really can't comment on his business practices in the past. However, did you realize you are quoting from Joe's own personal blog? (pushedtoshove.com)
By the way, you must be pretty new to real estate investing if you're shocked to see an active investor getting sued. The state will sue whomever they can to "prevent fraud to homeowners." Translation: if people like Joe can't legally operate as money finders, the people that are owed the money will probably NEVER know about it and the state will end up getting to keep it.
Also, in reading your quoted text above... who in their right mind would think they got to pay $500 to an investor, who would then pay $37000 in taxes and let them stay in their house? It's pretty obvious that some details are missing there, and to think that's the end of the story is ignorant. At best.
Honestly, after reading through some of the posted threads, I understand the concept but I don't think it's worth getting into to. To George's point, you'd have to do some major selling to convince the homeowner to sign any sort of agreement. Definitely not worth spending the money on his course (or anyone else's course for that matter).
George, I don't know Joe personally so I really can't comment on his business practices in the past. However, did you realize you are quoting from Joe's own personal blog? (pushedtoshove.com)
I am aware of it, thank you. That is why I quoted him, not some other guy who transcribed on his behalf.
By the way, you must be pretty new to real estate investing if you're shocked to see an active investor getting sued. The state will sue whomever they can to "prevent fraud to homeowners." Translation: if people like Joe can't legally operate as money finders, the people that are owed the money will probably NEVER know about it and the state will end up getting to keep it.
Also, in reading your quoted text above... who in their right mind would think they got to pay $500 to an investor, who would then pay $37000 in taxes and let them stay in their house? It's pretty obvious that some details are missing there, and to think that's the end of the story is ignorant. At best.
I hear you, but just remember, Kaiser didn't argue these and other facts in court.
I have been doing some investigating into this whole business of tax sale overages and it is a lot more complex than Stacy Kellams implies on his hyped up sales videos. Usually the folks whose name is on the overage list owes others that money and they have a judgement against that money anyways. There is a ton of research that must be done and a lot of negotiating with the claimants old creditors in order to get your hands on the money. It makes that 40% suggested fee for showing the claimant how to get those funds seem a little cheap.
As we're always taught ... anything that seems to good to be true - usually IS!
These GURUS make the processes sound so matter-of-factly that you can get this money for these claimants within days. They don't tell you: "provided there are no outstanding liens against them," which soundls likely the case in most instances, huh?
Hi,
I would like to say that John Wizniewski is correct. That Stacy's course, TSA is a copied version of Rick Dawson's Virtual Courthouse Riches and Hooked on Overages.
I have been doing this business for over 2 years and have had quite a bit of success with it.
I have been in this before anyone came out with courses. Rick's course is excellent (AFFILIATE LINK REMOVED). There is another course out there that is pretty good as well, but teaches another side of the business.
I know most of the players because I've been doing it for awhile. As a matter of fact, most of the "gurus" send there business to me to complete for them.
There is quite a bit that must be done and goes into this business. It's not really much different than other businesses, you have to work on it.
It does take some negotiating to successfully navigate getting the "Claimant" to work with you, however, with the right training and understanding of this business, you can be successful at it.
In an overview:
- I first find the money that is held within over 3,100 counties in the U.S.
- I then have to determine if the money is unencumbered or encumbered
This is the process of telling whether there is a lien or judgment against the money and who is next in line to receive it
- Then the Claimant is located
- Negotiate with the Claimant
- Get the money.
That's an overview. Of course, there are many more steps that are involved, however, this gives one an idea.
Yes, it can be profitable, however, it does take work.
Compensation can be very good, depends on your negotiation abilities and you paperwork.
I know nothing about this person, but today got spam emails to my BiggerPockets email account and our webmaster account. Lets just say that I don't think it is cool to add people to a list that they did not personally request to join.
And Yes - I removed both emails from their list and designated them as spam. :roll: