Dear Premium members:

We are profiling the Jefferson County Colorado online sale:
In Colorado you will find tax sale information at the Treasurer's office.
http://www.co.jefferson.co.us/treasurer/treasurer_T68_R9.htm

Don't forget the Assesor's office: http://www.co.jefferson.co.us/ats/splash.do

and the Clerk's office: http://www.jeffco.us/cr/index.htm

Step 1
Get on the Jefferson County Treasurer's website and register for the sale. You will also need you to fill out a W9 form, sign it and send it in to the county along with a voided check. This needs to be done this week. You will send it to:

Jefferson County Treasurer
100 Jefferson County Parkway, Suite 2520
Golden, Colorado 80419
or
Fax: 303-271-8359

Step 2
Register with SRI
http://www.sri-auctionsonline.com/

Step 3
Go through the County's Power Point presentation.
Download it from this page:
http://www.co.jefferson.co.us/treasurer/treasurer_T68_R10.htm 

For your convenience, I converted it to PDF format so you can view the same presentation at:
http://www.rogueinvestor.com/training/2010_Jefferson_Co.pdf

Step 4
Download the list in Excel format if you can:
http://www.co.jefferson.co.us/treasurer/treasurer_T68_R15.htm

**Please note that you can get a free version of Open Office that will allow you to use Word, Excel or Powerpoint documents (www.openoffice.org). 

My first screen is always for redemptions. I am sorry to say that Jefferson County only updates a separate file with the redemptions. So, although they are way ahead of the game on training, updating the redemptions in this manner is sorely lacking.

Nevertheless, here is a download link of the Excel file with redemptions highlighted in red and partial payments highlighted in blue.

http://www.rogueinvestor.com/training/Jeff_screen01.xls

Take this file and remove all of the rows listed in red. These have been redeemed.

As of Monday, the county listed a new update of redemptions and I have included those as a darker shade of red. You can find this list posted at: 

http://www.rogueinvestor.com/training/Jeff_screen02.xls

Again, this is a frustrating way to present redemptions, but I have seen it done this way before.

This brings up a point that is extremely important. In this game, it doesn't pay to prepare well ahead because last-minute redemptions are common. Even comparing the list from screen one to screen two, you can see several redemptions.

Sorting using a Spreadsheet

To sort using a spreadsheet, such as Excel or Open Office, first highlight the entire area usually starting from just below the column headers all the way to the bottom. You can typically do this by clicking on the A2 cell and holding the shift button while scrolling to the end of the data. This is important, so please ask a friend if you don't know how to highlight.

Next, go to Data, Sort and you will see the column names if they are labeled, otherwise they will be column A, B, C, etc. Now, you can sort in ascending or decending order. 

Here is what it should look like. Note, I did not use the Schedule Number as a sort, it is only shown as the first column listed.

Please remember that the liens in red or purplish red have been redeemed. I could have just as easily deleted these rows. In fact, I will soon. To delete a row, simply click on the row number at the far left so that it highlights the entire row, then you can right click and delete or edit and delete.

Here is the file with red highlights deleted:

http://www.rogueinvestor.com/training/Jeff_screen03.xls

Common Screens

Some things are just not worth your time and should be removed. Please look through the list and note items of concern, such as "1/2 Mineral Interest" and "Unbuildable" and remove these items.

Here is the updated list with these items removed. You will find these listed on the column entitled Message1.

http://www.rogueinvestor.com/training/Jeff_screen03a.xls

Tax Status

7 = State liens. This is probably not worth your time researching. State liens are not removed through the tax lien process so, consider screening these out like I have.

Liens (Interest only)

If you would like to continue on, please consider these screens:

Partial Payments

One of the first things to note is the partial payments shown in blue. This tells me that these individuals and companies are motivated to pay their taxes so the probability of redemption is high. In other words, they will most likely pay and you will earn your interest, but your chance of foreclosure is limited.

The partial payments are listed shown with the balance remaining on the column to the right of the original balance due.

Improvements vs. Land

Improved property always has a higher liklihood of being redeemed. However, you can check the property address versus the owner's address and learn if the property is owner-occupied or a rental or vacation property. Rentals and vacation properties have a lower chance of redemption. Consequently, if you are looking to turn a lien into a deed, you will want to focus your energy on non-owner occupied properties.

Land usually always has a lower probability of redemption. In other words, most people are willing to give up lots, land and rental properties, but their owner-occupied homes are the last to go.

Finally - Don't Pay Too Much

Among other screens, I have added a column that includes my maximum bid so I know where to stop. Based upon the previous two years, a reasonable maximum overbid is about 2.5%. Please know that your maximimum overbid may be zero or 5%. That depends upon your level of risk.

Let me explain. You will actually bid the amount. So, if the lien amount is $1354.23, that will be your initial bid. You then have the option to bid a higher amount say $1355.23 or $1356.23. However, remember that you do not receive interest or get any of the overbid back. I you are the winning bidder at $1356.23 and the original lien amount is $1354.23 you have bid $2 over the original amount. In percentage terms, your overbid is only 0.15%. To stay below a maximum cutoff of 2.5% over, you should not exceed about $33 over or a total bid of $1387.23. 

You will receive 10% interest on $1354.23 only.

If you plan on bidding on residential houses or what I call high quality liens, you will probably have to include an overbid. If you are bidding on land, lots or commercial properties, your competition may be limited so your overbid will not have to be as high.

http://www.rogueinvestor.com/training/Jeff_screen03b.xls

Wishing you the best,

Michael

P.S., Remember the sale is Today...Thursday, October 21. 

Login to SRI and find the Colorado link under auctions.
http://www.sri-auctionsonline.com/

Here is what the sale will look like:

Note that you can place your bid to the right. Also, you can sort the list by ending time, title or price. Please take your spreadsheet list and compare it to the schedule number for any liens you are interested in buying. The sale ending time is shown below each lien.