Today I want to talk to you about a topic not many people are too familiar with – Tax Foreclosures and a little known niche in the real estate industry called “Overages.”
There are over 3,000 Tax Foreclosures completed on every, single business day across the United States. That’s about 750,000 Tax Foreclosures every YEAR.
When a property is in foreclosure, it’s usually there for one of two different reasons:
Let me explain #2 for you a little deeper – say you owe $15,000 in property taxes on your house and your property goes into Tax Foreclosure. The county will put the property up for sale at an auction. Say the property sells for $100,000 and from that, the county takes their $15,000 they were owed for property tax. So what happens to the remaining $85,000 that the clerk of court has in their bank account?
The homeowner has to make a claim to the county clerk and the court usually reviews these claims and awards the homeowner his money. This is an ideal world scenario, but in the real world, the homeowner may not know he has money coming to him and these funds eventually become the county’s money.
The county government HAS NO OBLIGATION to notify or tell the former homeowner.
J.P. Morgan says these Tax Foreclosure sales generate nearly 13.6 million dollars in overages, or equity, every single day. It’s unbelievable! They do NOT tell the former owner this equity is due to them because if it’s not collected, the government gets to keep that money after a fixed amount of time.
The reason why you should care is because you can get paid a finder’s fee of 30-40% of whatever the overage is for connecting people to their unclaimed money.
The two experts in this field currently have over $2,400,000 of these claims in their offices, Bob Diamond, Attorney at Law and Ed Diamond, MBA are experts in this niche of overages and help homeowners get the money that’s due to them. They will receive fees of approximately 30% of that 2.2 million.
He tipped me to this little known “Tax Overages Niches” and I am sharing it with you all.
There are a few things you will need to be successful in the overages business. Here are the four simple steps you will need to follow:
Overages can range anywhere from $5,000 to $100,000. Ed told me the other day that the largest overage he’s seen since doing this is 1.3 million dollars. That’s incredible, right?
The overages market is a great place for a real estate newbie to begin their career. These finder’s fees add up to a very nice income for anyone putting a full-time effort. Start with tax sale overages, and then work your way up to more complicated funds like mortgage foreclosure overages and unclaimed estates. By the time you’ve got a few tax cases under your belt, you’ll feel like an old pro.
This is also a great way for someone who doesn’t want to buy and sell houses anymore to stay in the real estate market without getting their hands too dirty.
Bob and Ed refer to this as the “Robin Hood System” and if you think about, this name totally makes sense. There is a significant amount of money in it for YOU as an insider who would be finding this money for people from the federal government.
There’s truly no catch – it’s a unique, niche opportunity that virtually ANYONE can do.
This can help you take your business to the next level – these “overages” are a phenomenal way to make new money. You are helping people regain money to rebuild their lives, while making a nice profit for yourself.
Register for our monthly meeting all about overages.
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