| Hello Rogue
Investors,
Before I get to the heart of this newsletter, which will focus on tax lien
sales in Missouri and tax deed sales in California, I want to let you know
what's on our calendar of events:
|
August 2:
Tax deed sales in Texas (25% right
of redemption) and Georgia (20% right of redemption).
August 9: Come hear Michael
Williams, co-author of Rogue Real Estate Investor Collection,
speak on government tax lien certificate sales. For more
information, please visit
www.rogueinvestor.com
or
www.mareinet.com.
August 14 & 15:
Midwest (Missouri, Illinois & Indiana)
Tax Lien Research Seminar.
August 22: All
Missouri county tax lien sales.
August 29: All
Mississippi county tax lien sales.
October 2, 3 & 4:
Texas
Tax Deed Field Course
- 3 days of training includes live auction. |
Missouri Tax Lien Sales
Several Midwest tax sales are held in late summer
and fall, with the Missouri tax lien sales kicking off on Monday August 22. The
good news is it is easy to remember when Missouri conducts its sales each year.
They are held on the fourth Monday in August. Because every county in Missouri
has its sale on the same day, it is very difficult for institutional investors
or greedy small-time investors to corner the market. Furthermore, for most of
the country Missouri is located somewhere between New York and California. In
other words, Missouri is often forgotten and that's good news for individual
investors.
Missouri offers investors 10% interest on the
amount of taxes owed and nothing on the overbid amount. Bidding proceeds by
increasing the price of what you will pay for the certificate, so if you
were to bid $2,000 on a $1,000 lien you would earn 10% on $1,000 or essentially
5% on the total amount.
Missouri has gone through several changes, which
may not be reflected in older books or products that are not frequently updated.
Missouri used to allow an 8% interest rate on the overbid, but that is no longer
the case. Missouri also recently changed its redemption period from two years to
only one year.
Missouri still divides its properties into first,
second, third and fourth offerings. First offerings, like second offerings, now
only have a one-year redemption period; third offerings have a 90-day redemption
period; and fourth offerings are essential deeds.
Missouri requires non-residents of the state to
find a resident of the county in which they wish to attend an auction to
authorize the non-resident to participate in the auction. This is done by having
the resident notarize a form. The resident does not have to attend the
auction. The only hard part may be finding a resident of the county.
So what strategies should you employ in Missouri?
First, decide whether you are going for the
interest or the property. If you are going after the interest, stay away from
big cities and buy high quality liens that are likely to be redeemed. An example
would be liens on residential houses in nice locations.
If you are looking to acquire property, search
through the lists and look for third and fourth offerings that you can take to
deed quickly. Finally, don't forget that if you buy your liens in bulk (20 to 30
or more), you have a higher chance of picking up a property or two through
foreclosure.
If you would like personal guidance through the
entire tax lien sale research process, focusing on sales in Missouri and the
Midwest, join me at our next hands-on tax sale research seminar in Kansas City,
Missouri on August 14-15, 2005. Here
is what we have planned for you each day:
8 hours of classroom training and one-on-one support. We will go over real
lists to be used on Day 2.
Day 2:
Research properties in the field and at the county courthouse.
Following this seminar, you will be prepared to
attend a Missouri tax lien sale on August 22 if you wish.
For more information, visit:
www.rogueinvestor.com/tax_lien_course.html
California Tax Deed Sales
California sales of tax-defaulted properties are
held by the County Tax Collectors year round. In many counties, the annual sale
is scheduled during the spring and re-sales, if conducted, occur in late summer.
Below is information on upcoming sales in California. For information on tax
deed sales in all 58 counties, visit our California Tax Deed Sales Directory
at
www.californiataxdeedsales.com.
Calveras County:
November (not yet scheduled)
http://www.co.calaveras.ca.us/departments/taxcollector.asp
= Tax Collector's website
http://www.co.calaveras.ca.us/departments/taxcollector.asp#defaulted = Tax
Defaulted Property Auction
Kern County:
August 22-24 (Internet auction conducted by Bid4Assets)
http://ttax.co.la.ca.us/Proptax/CntyWeedAbatementist2005B.pdf
= Properties Subject to Weed Abatement Charges
http://ttax.co.la.ca.us/Proptax/2005bIRSLiensList.pdf = 2005B IRS Lien List
Marin County:
August 17-18
http://www.co.marin.ca.us/depts/TC/Main/index.cfm = Tax Collector's website
http://www.co.marin.ca.us/depts/TC/Main/taxes/pages/auctioninfo.cfm = Tax
Defaulted Auction
http://www.co.marin.ca.us/depts/TC/Main/taxes/pages/auctionlist.cfm = List
of Parcels
Mariposa County:
August 26
http://www.mariposacounty.org/taxcollector/index.html = Tax Collector's
website
http://www.mariposacounty.org/taxcollector/Defaulted%20Tax%20Sale.htm =
Defaulted Tax Sale
San Bernardino County:
July 18-August 2 (Internet auction conducted by Bid4Assets)
http://www.co.san-bernardino.ca.us/ttc/tr = Tax Collector's website
http://www.co.san-bernardino.ca.us/ttc/tr/TaxSale/TaxsaleFramePage.htm = Tax
Sales
Counties must notify the State Controller's
Office not less than 45 days nor more than 120 days before a proposed sale. As
notifications are received, they are posted on the State Controller's website
at:
http://www.sco.ca.gov/col/taxinfo/tcs/pubauctions/index.shtml.
Happy investing,
Michael Williams
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