Hello Rogue Investors,

Here's a question worth pondering. What is the latest trend occurring in the Tax Sale investing industry? The answer in my opinion is Online Tax Sale Investing. In fact, this topic is so important that I have decided to dedicate a three part series to helping you understand this new phenomenon.

Like most every form of business, the Internet has created a wealth of information readily available. It has allowed counties to promote their tax sales and even publish their tax sale lists online. Some States and local governments have embraced the Internet as a friend and partner in their attempts to properly run local government - especially in terms of collecting tax revenue.

It is really only a matter of time now before all States, counties, municipalities and taxing jurisdictions find out the true power and cost savings of the Internet.

In some cases, this trend has proceeded with a fury. The ultimate culmination of using the Internet is online tax sales. Just a few years ago, Kern County, California and Bid4Assets decided to try something new. Rather than conducting a physical tax sale auction requiring investors to travel to the sale and the County to provide the necessary space and additional man-hours of staffing, they decided to use computer software and the Internet to conduct the sale online.

Two years later, online tax sales have become a big business. In California alone, over 15 counties now conduct their tax deed sales online.

The results are impressive:
 - The counties are selling more liens and deeds;
 - They have dramatically reduced costs; and,
 - The paper trail has been reduced resulting in additional efficiencies.

This trend has not gone unnoticed by other states. Counties in Arizona, Florida, Idaho, Nevada and elsewhere are participating. In Arizona, one county (Mohave) finally made the jump to online sales in 2005. This year it looks like at least two other Arizona counties (Maricopa and Yavapai) will be joining them.

Here is a recent quote from the Escambia County, Florida Tax Collector:

"There are people from all over the world bidding, thousands of people you never could have touched before."

However, there have been some growing pains. For example, during the 2005 Mohave County, Arizona Online tax sale hosted by SRI, complaints were filed by disgruntled investors who could not access web pages at the same time as others with better Internet connections.

Also, the increased access to these online sales has made it easy for many uneducated investors to participate in the sales. Some of these investors do not understand how to adequately research the properties and end up purchasing parcels that they later regret owning.

One of the largest online companies specializing in Internet tax sale auctions is Bid4Assets (www.bid4assets.com). From the beginning, Bid4Assets recognized two important goals that are critical to conducting a successful online tax sale. First, maintaining a large technical support staff is vital to ensuring that the online sales are conducted smoothly. Second, the system to handle the sales must be robust and include adequate bandwidth so all bidders can access the information simultaneously.

Every year Bid4Assets continues to host new county tax sales and expand its reach in the online tax sale market. For the first quarter of 2006, Bid4Assets has the following online sales scheduled:

 - February 27 - March 2, 2006: Kern County, California:
http://www.bid4assets.com/storefront/?sfID=68

 - March 7-9, 2006: Central California Counties (Fresno, Kings, Merced)

After researching the online tax sale market for the past year, we found that the biggest challenge for investors is learning how to navigate county websites and research properties prior to the sale. To address this issue, we have been working closely with Bid4Assets and TaxSale.com (their tax sale educational website) to help investors wishing to participate in this year's online tax sale auctions.

We think we have come up with a solution: Tax Sale Research Teleseminars.

We will be conducting our first Tax Sale Research Teleseminar for the upcoming Kern County, California Tax Sale. The Tax Sale Research Teleseminar will be held at 6:30 PM CST on February 12, 2006. This will give you plenty of time to learn how to research specific properties in this sale. We will cover the following topics during the Teleseminar:

 - An overview of State of California and Kern County Statutes governing the sale.
 - Sources of information for the sale, including tax sale lists, websites and phone numbers.
 - How to screen lists, use parcel numbers, and locate properties using GIS data.
 - How to determine market values.
 - How to check for liens. 
 - How to check for bankruptcy and environmental issues.
 - Bidding tips.
 - How to manage your paperwork and make money from your investment. 

In addition to covering these topics, you will also have the opportunity to ask us any questions. After the Tax Sale Research Teleseminar you will be given access to a full audio recording of the entire Tax Sale Research Teleseminar. Here is a link for more information:
http://www.rogueinvestor.com/teleseminars/kern_county.html

February

February 3 - Clark County, WA Tax Deed Sale
http://www.clark.wa.gov/treasurer/property/ForeclosureInfo.html

February 12 - Kern County, California Teleseminar – Learn how to invest in California tax deeds with a special emphasis on the upcoming Kern County sale. Learn more by visiting:
http://www.rogueinvestor.com/teleseminars/kern_county.html

February 13 - Maricopa County, Arizona Online Tax Lien Sale
https://www.bidmaricopa.com/

February 14 - Yavapai County, Arizona Online Tax Lien Sale
http://www.yavapaitaxsale.com/

February 16 - Coconino County, Arizona Tax Lien Sale
http://co.coconino.az.us/treasurer.aspx?id=557

February 16 - Yolo County, California Tax Deed Sale
http://www.yolocounty.org/org/treasurer/

February 21 - Nassau County, New York Tax Lien Sale
http://www.nassaucountyny.gov/agencies/Treasurer/Annual_Tax_Lien_Sale/ann_tax_lien_sale.html

February 23 - Yuma County, Arizona Tax Lien Sale
http://www.co.yuma.az.us/treas/taxlien.htm

February 23 - Cochise County, Arizona Tax Lien Sale
http://www.co.cochise.az.us/treasurer/backtax.htm

February 27 - Kern County, California Tax Deed Sale begins
http://www.bid4assets.com/storefront/?sfID=68

Happy Investing in 2006,

Michael Williams

P.S. For new Rogue Investors, previous newsletters are archived at: http://www.rogueinvestor.com/real_estate_newsletter/archives.html
 

P.P.S. To sign up for the Tax Sale Research Seminar, visit this link:
http://www.rogueinvestor.com/teleseminars/kern_county.html or call us toll free at 866-465-3976