this video is designed to help you start a tax overage business at the end of the video you'll find a valuable gift it's a tax overage business plan that you can download and will lay down for you step by step everything you need to know to start a successful tax overage business of your own if you are new to this channel make sure to hit the Subscribe button for more videos like this defaulted properties are auctioned to the public at live and Online Auctions the starting bid at the auction in most instances is very low and very close to the delinquent back taxes for example a property may be assessed for as much as four hundred thousand dollars keeping in mind it's slightly used and abused at competitive auctions the starting bid may be as low as thirty thousand dollars if you do the math there is considerable margin dreamers and late night television viewers will hear it explained that these properties are sold for 10 cents on the dollar that's not going to happen in the competitive Marketplace bidders will pay more than 10 cents on the dollar experience has taught me these properties will be sold for 25 to 50 of their value so what are tax sale overages Dash an example of an overage what are tax sale access funds for example if you paid 30 cents on the dollar and the property was valued at four hundred thousand dollars you would need significant dollars 120 000 maybe even 140 000 however the backed axes were only thirty five thousand dollars when the County Tax Collector Auctioneer began the bidding let me repeat if the property tax which is delinquent is thirty five thousand dollars and the buyer pays 130 000 the county will accept one hundred thirty thousand dollars and a full 75 will be overages in other words the buyer has paid over the amount of taxes due what happens to the 95 000 that money belongs to the property owner who is probably abandoned and disappeared not even realizing that the 95 000 is still sitting there at the county at this point the county or municipal government will go quiet or silent rarely does the county send out a search party or attempt to locate the delinquent taxpayer regarding unclaimed tax overages what happens to excess funds from a tax sale the money will be held at a county or municipality and ultimately is cheat be confiscated by the county and state if the property owner fails to claim or demand the money so can you make money with overages those who understand and know the county rules and the processes learn very quickly how to take advantage of this situation certainly others have figured out how to track down the defaulted property owner they have figured out ways to become finders for this money that will ultimately be lost by the desperate owner as the money is cheats to the county and state by laws enacted by the legislature it's rare for an investor or student to understand that the state and the county have many rules but the Savvy investor knows how to find tax overages and capitalize on them when a tax delinquent property is seized and sold at a tax sale the bidding begins at around the amount of the back taxes owed however at competitive auctions the bidding can go much higher than that for example if the bidding goes as high as one hundred thirty thousand dollars when the back taxes were only thirty five thousand dollars what happens to the extra ninety five thousand dollars that 95 000 is a tax sale over age and belongs to the property owner who lost that property due to unpaid taxes the owner may not know this and if he or she doesn't claim that money it will ultimately as cheap to the state which has no incentive to go out of the way to locate the former property owner some people have made a business out of locating these owners regarding their tax sale overages in exchange for a finder's fee this is a little-known way to make money in the tax defaulted real estate business if you want to pursue this strategy here's a step-by-step one verify that you can actually collect excess proceeds in your check its accuracy with a third-party professional before you get started 2. get a delinquent tax list there are a few ways to do this three send out a direct mail campaign preferably a few months from the foreclosure date when motivated sellers are most motivated to unload their property for next to nothing prices four send out offers for as low as possible and buy as many as you can preferably ones that are actually desirable important you should not pay off the Delinquent Tax balance during your purchase process you will most likely have to accept a quit claim deed rather than a warranty deed for the property 5. play the waiting game until the property has been foreclosed by the county and sold in the tax sale 6.
file a claim for the excess proceeds with the County Treasurer or tax collector follow the applicable process in your state the next part of the video is not specific to the tax overage business nevertheless this knowledge is essential for success in the tax overage business as well as in any other business ignored at your own Peril operating a successful tax overage business will depend on the following four conventions one a practical plan with a solid foundation 2. dedication and willingness to sacrifice to reach your goal three technical skills four basic knowledge of management finance record-keeping and market analysis as a new owner you will need to master these skills and techniques if your business is to be successful finding a niche small businesses range in size from a manufacturer with many employees and millions of dollars in equipment to the loan window washer with a bucket and a sponge obviously the knowledge and skills required for these two extremes are far apart but for Success they have one thing in common each has found a business Niche and is filling it the most critical problems you will face in your early planning will be to find your Niche and determine the feasibility of your idea get into the right business at the right time is very good advice but following that advice may be difficult many entrepreneurs plunge into a business venture so blinded by the dream that they fail to thoroughly evaluate its potential is your business idea feasible before you invest time effort and money the following exercise will help you separate sound ideas from those bearing a high potential for failure identify and briefly describe the business you plan to start identify the product or service you plan to sell answering yes to any of the following three questions means you are on the right track a negative answer to all of them means the road ahead could be rough 1. does your product or service satisfy an unfilled need two will your product or service serve an existing Market in which demand exceeds Supply 3.
will your product or service be competitive based on its quality selection price or location market analysis for a small business to be successful the owner must know the market to learn the market you must analyze it a process that takes time and effort you don't have to be a trained statistician to analyze the marketplace nor does the analysis have to be costly analyzing the market is a way to gather facts about potential customers and to determine the demand for your product or service the more information you gather the greater your chances of capturing a segment of the market know the market before investing your time and money in any business venture the following questions will help you collect the information necessary to analyze your market and determine if your product or service will sell this brief exercise will give you a good idea of the kind of Market planning you need to do an answer of no to any of the questions indicates a weakness in your plan so do your research until you can answer each question with yes 1. do you know who your customers will be too do you understand their needs and desires three do you know where they live four will you be offering the kind of products or services that they will buy five will your prices be competitive in quality and value 6.
