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.
Real Estate Investor · Baltimore, MD · Member since 2008 · 1k+ posts · 268 votes
15y
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.
Rehabber · Lake Conroe Area, TX · Member since 2010 · 48 posts · 15 votes
14y
I realize this is an older topic, but to piggyback on Mr. Dorkin's post, I just received a similar, and very misleading email today from Stacy.
*On a side note, Stacy said in his previous email he was "giving away" a free copy of "Think and Grow Rich." The 1937 version of the book "Think and Grow Rich" (which is excellent) is in the Public Domain, although still somewhat controversially, but basically means that anyone can obtain it for free (but I'm no attorney) and the fact that someone is "giving" it away is a nice gesture, but merely a gimmick. In my opinion, a more tasteful approach might be to simply "suggest" that someone read it. I honestly don't know if this is referenced on his site or not.
The email I received today was even worse. It talks about Tax Lien Certificates (which don't even exist in Texas). It then goes on to name these so-called "FACTS":
FACT: Tax Liens currently pay fixed GUARANTEED
rates of returns of 18% -- 36% interest per year.
FACT: You can acquire valuable real estate through
investing in Tax Lien Certificates for as little as 10 cents
on the dollar.
FACT: You can get started with as little as $20, and
you can have bad or no credit at all.
FACT: You can safely and easily acquire all the Tax
Liens you want from the comfort of your own home, and
completely in your spare time.
That was it for me. Usually, this would be deleted and I would be done with it, but I can't. I'm sure there is going to be some sort of "system" pitched during the webinar that some unsuspecting person will blindly be sold. No one "buys" these programs, they get "sold."
Sure, it may work, but this is highly misleading and there are far better sources to learn this subject matter from along with the necessary risks and local laws involved pertaining to your state and county of interest.
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.
My question is, the check is cut into the person whom the money belongs to. How do you deposit that into your account? I would think an attorney is used. Is a real estate attorney the type of attorney I should use? If not what type and what is the usually fee to have the attorney put the claim in and then disburse the checks?