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I really like a good quote. If a quote makes the point in a clear, clever, and convincing way and also aligns with my own philosophy, well that really makes my heart sing. I’ll be sharing some of my favorite quotes with you. It won’t be daily, it won’t even be on a regular schedule but it will be the best quotes that really say something important. Today’s quote:
“Opportunities multiply as they are seized!” – Sun Tzu
I have certainly found this to be true in my investing. It is about taking action. The more I am out and about taking action the more opportunities I run into.
Happy investing,
Ned
PS: Thanks to Rubeina for her retweet of a Tony Robbins post.
One book I recommend in the wealth building category is the popular Rich Dad, Poor Dad by Robert Kiyosaki. In his book he talks about the Cash Flow game. The game is a blast and you will feel like a tycoon as you build your financial portfolio.
It is designed as a financial teaching tool. It will help you learn to evaluate and maximize your investments. It will also guide you as to what is important and what will trip you up on your path to wealth. The goal of the game is about getting out of the “rat race” and building enough wealth to live off your investments.
Play the Cash Flow Game
A group will be playing the Cash Flow game at the Lemon Grass Thai restaurant in Crofton MD, near the intersection of Rt 3 and Rt. 450. We will meet at 6:00 and start with dinner and networking. Remember to bring business cards. The cost is free but the restaurant will expect us to consume food and drink for providing the space. RSVP here
Reposing at his residence today, Tuesday, from 4pm to 8pm. Requiem Mass tomorrow, Wednesday, at 2.30pm in Mitchelstown Parish Church.
Fortunately as Mark Twain once said “The reports of my death are greatly exaggerated.” I am certainly alive and well.
I had earlier set up a Google alert so that whenever Google finds my name on the internet it sends me an e-mail. Imagine my surprise to open the e-mail and see my own death notice. I’ve never been dead before and I didn’t quite know how to react. I clicked through to the link above to find out it was Ned Carey from Cork Ireland. I felt better immediately. I guess my enemies will have to stop rejoicing, hopefully for a very very long time.
Google Alerts
I do recommend people set up a Google alert for their name. It’s fun to see what people are writing about you, and you might be surprised what you find out about yourself. It is a free service. You can get it here. Google Alerts
You can use it not only to track your own name but your business or a competing business, friends, enemies, political figures or your favorite sports team.
Have fun,
Ned
PS: While you are here why don’t you check out some other posts. If you are not into real estate, check out the humor topic in the sidebar.
Effective today Oct 1, 2009 speed cameras are allowed statewide in MD near schools and highway work zones. Fines will be $40 for those that exceed the limit by over 12 MPH.
Baltimore City will start using them right away. According to the Exhibit A website, the city has already installed a camera at the intersection of Walther and Glenmore avenues. The city plans to have five mobile cameras in use next spring.
So be careful when driving in the city or you could be getting a ticket in the mail. Be Careful who you loan your car to. Their lead foot could get you an unpleasant surprise when you look in your mailbox.
The name of the book is a play on words. We’ve all heard of a “Go Getter”, a person who aggressively goes out to get what he or she wants. Being a “Go Getter” is considered a positive trait. The point of the book however is that giving or being a “Go Giver” is a better way to get more out of life.
The book is written in the style of a parable, similar to Who Moved My Cheese?, The One Minute Manager, or Fish!. In this story a man meets a mentor who introduces him to other people who each teach him one lesson. There are five lessons. I won’t give them away but you can already figure from the name that point is you get more from giving and sharing than from putting your own interest first.
This was a fun read. How fast I get through a book is an key indicator to me how good the book is. If it is interesting and chock full of good information, then I am anxious to get back to it and read more. I finished this in two days which must be a record for me. I recommend this book.
Who should read this book?
There will be three types of people who read the book. The first type will love it because it reinforces what they already believe. That is where I fall. I know these principals to be true from my own experiences. The book is a reminder to use these concepts regularly. It is easy to get out of the habit of what we already know we should do. This book is an enjoyable reminder.
The second type is someone who is open minded but hasn’t yet learned or doesn’t yet fully understand these lessons. If this is you, you have the most to gain from reading this book. You will relate to the hero of the story as he learns and applies these lessons
The third type of person is the cynic who simply won’t believe this works. That’s OK, you don’t have to believe in it, for these truths to work in your life. Sadly most cynics wont apply the lessons and they will never learn that it really does work. But if you are a hard core cynic, I challenge you to read this and apply it’s lessons.
I am currently assisting to teach a year long class on Apartment investing. A number of people have asked me if they can join. Unfortuneately, the class is too far along to join at this point. The good news is because of the demand a second class is forming in Northern Virginia.
Introducing REACH – Real Estate Apprenticeship in Commercial Housing
Would you like to learn how to invest in apartment buildings? Better yet would you actually like to DO IT?REACH is a year long class that is a great opportunity to learn more than just theory, it is a chance to actually do a deal! Class members will break up into groups of five. Each group will have a goal to purchase an apartment building during the course of the class.
You see most real estate instruction is about giving you information and hoping you will then go out and do deals. Sadly, after the excitement of a class is over, most people don’t take action. In fact many are not geared to help you learn, but to entice you into ever more expensive classes and coaching programs. This class is different. It is about helping you get real results.
Why you will succeed with this class.
There is a focus on attitude and overcoming fears
You will work with a team to motivate you and hold you accountable
Workload will be divided up among team members
You will focus on your strengths and your areas of interest, while other team members handle areas of their own strengths.
Your weak areas are covered by your teammates strengths
You will be taught by an experienced team of instructors, who are doing this business in today’s market.
The skills you will learn and the tasks you will do
Create an LLC
Write a business plan
Learn marketing and how to have a constant flow of deals coming to you
Learn to evaluate deals
Create letters of intent
Go to contract and do due diligence
Learn how to raise the money
Create syndications and learn SEC regulations
Learn how to manage the properties and maximize their profit potential.
How do I get involved
The year long class is limited to 25 People and the cost is $2950.00. More importantly than the money, you must be committed to making the effort. If you want to get involved contact us and we will send out an application.
The Baltimore City Tax Sale was held May 18, 2009. A total of 8569 liens were sold with a total face value of $20.8million. There were 172 bidders. 91 bidders had winning bids. There were a total of 33,426 bids meaning about four times as many bids a liens awarded.
If you compare that to last year they sold 9026 liens for a face value of about $22.8 Million. Last year had 177 bidders of which 98 had winning bids.
The top bidders was #83 ETS Maryland LLC who spent $12 Million the day of the sale and was awarded 3670 liens. Runner up was bidder #87 Two Thousand Nine LLC at $9.3 million and was awarded 1501 liens. The top 10 bidders spent $33.6 million and won 7749 out of the 8569 liens sold that day.
The average effective return was 10.46%. The lowest return I saw was bidder 157. He’s earning a whopping 2.7% on the $37,000 he spent.
So what were Ned’s results?
My IRA is earning 17.37% on my winnings ! (more on investing with your IRA in a future post). I won 38 liens this year. Not quite as much as last year but I had less money to invest this year, so I’m happy.
I won 17% of the liens I bid on this year compared to 20% of the liens I bid on in 2008. This is a good thing. My bidding was more intelligent, lower bids but higher quality properties and higher interest rate returns.
Thank you!
A big thank you goes out the the interns that helped me this year. I hope those that inspected properties or those that just came to the intro meetings learned something that will help them in their investing.
What do the results mean to the small investor?
It was another year of the big guys dominating the auction. You’ve probably heard of the 80/20 rule, well in the Maryland Tax sale it is 90/10. The 90% of us small guys are fighting for 10% of the liens. While statistically the odds of winning a lien were 1 in 4 but I wouldn’t count on that kind of result unless you are willing to accept a very low return.
The results confirm what I have said before, this is not as easy as the late night infomercials make it sound, however if you are prepared you can do a decent job in this game even at a modest level.
I will get a post up shortly with the Baltimore City tax sale results. If you would like to share your experiences in the tax sale click the title heading and leave a comment. Several of you have left comments already – thank you. I will respond when I get a chance, still lots of work to do this week.
This blog is focused on real estate investing. I have written a lot about tax liens and the tax sale process from an investor’s point of view, however I have gotten several questions from homeowners and tenants that are wondering what they should do. So here is the tax sale process from a homeowner and tenant’s point of view.
First, don’t panic
If your property goes to tax auction, don’t panic. Depending on your state they may auction off a tax lien or a tax deed. In either case, there are usually options to save your house.
Tax Liens
In tax lien states you still own the property. The auction is only for a lien against your property. The winner of the auction receives a tax sale certificate, which basically makes them the tax collector. They take over the position of the city or county and get to collect the taxes and interest.
Tax Deeds
In the states that auction off tax deeds, the winner of the property actually gets a deed to your property. You are no longer the owner. However most states that sell tax deeds offer a right of redemption, so that you can get your property back by paying the back taxes, penalties and interest. This is most often for six months but in some cases a year.
Next don’t delay
While you do not need to panic, if you delay in taking care of the taxes, interest and fees can add up to substantially more than the original tax bill. Some states charge as high as 25%. Ultimately you could lose your home.
What are the risk and costs to homeowners in Tax sale?
The rest of this post is about the rules in Maryland, but the basic concepts will apply in many areas. The interest rate is for Baltimore City and that varies by county in Maryland. If you want to “redeem” or pay off you tax lien you must do the following:
You must pay the lien amount
You have to pay interest on the late taxes at 18%
You must catch up any taxes that have come due since the tax sale date.
After four months $750 in legal fees can be added
After six months foreclosure can start. Legal fees and miscellaneous expenses can be over $2000 if foreclosure is started
Ultimately the tax certificate holder can take your property through the foreclosure process.
The tax certificate holder can take over your property but must file for foreclosure in order to do so. They cannot even start the foreclosure process until after at least six months. (unless your property is listed as vacant and needing substantial repairs by the city, then they can start after two months)
How do I Save my Home?
Contact the county tax sale office, or in Baltimore city go down to the Abel Wolman Municipal Building, 200 Holiday St., Baltimore, Maryland 21202. Ask for the tax sale office. It’s on the first floor. The office is open from 8:30am – 4:30pm. They will give you a payoff amount and it will have to be paid in cash or certified funds.
Anyone who has an interest in the property may redeem the tax lien. So often a bank will pay off the taxes to protect their interest. However in this case you will then owe the bank the taxes.
Water bills are part of the taxes that are owed the city or county. Baltimore City offers two programs to help, the Low Income Water Assistance Program and Senior Citizen Water Discount Program. I have been told that the city will work with people who need tax lien help and are struggling to pay their property taxes however I have not found contact information yet.
What Are My Rights
You still own the property. You still get to live there and do anything you would do with a property you own. You can choose to sell or rent it. If you choose to sell, the taxes will be paid out of the money you get for the property. You have the right to redeem (pay the taxes) the property right up to the day the judge orders the foreclosure final.
Foreclosure is a long process, typically at least 4-6 months but it can take years. Everyone who has an interest in the property, owners, heirs (in the case of a deceased owner), banks, etc., will be notified by certified mail and the sheriff will post a notice on your door. Avoiding the certified mail may not stop the foreclosure, but it will keep you in the dark about what is happening.
You cannot lose your home without a foreclosure. You should get a notice mailed to you 60 days before a foreclosure is filed. Paying now will save you the cost of the foreclosure. Once a foreclosure starts the legal fees will add up quickly.
How Long Do I Have to Redeem my Property
You have the right to redeem (pay the taxes) up until the day a judge rules that the property now belongs to the tax certificate holder. Tax sale foreclosures do not end on a specific day. The case file sits on a judges desk in a pile. You don’t know when it will reach the top of his pile and become final. Sixty days after you get notice the case file can be sent to the judge and at any time you could lose your home so it is important to act when you get notice.
Upon request the tax lien holder must give you a redemption statement and cannot stop you from redeeming. If the tax certificate holder does not allow you to redeem you can go to the court and ask the court to set the amount of redemption. The legal fees are capped at $750, after 4 months but before the foreclosure is filed. After the foreclosure is filed the fees are capped at $1300 but other expenses can add up to over $2000. You should get an itemized statement listing all the fees separately.
The time line goes like this:
After four months $750 in legal fees are added
You will get a notice 60 days before a foreclosure is filed
Foreclosure can start anytime between 6 months and two years.*
You will get a notice after the foreclosure is filed that will give you 60 days to contact the court. The foreclosure cannot be final before this 60 days is up.
After all notices have been sent, 60 day period has passed, and other terms complied with, the file will be sent to a judge.
The judge could take days or months to issue a final decree stating that the foreclosure is final. You have until that time to pay your taxes and save you home.
* In Baltimore City, the foreclosure on properties that are listed as vacant and in need of substantial repairs can start after 2 months
What if my landlord is in tax sale?
Most properties that are in the newspaper listing for the tax sale are paid off before the sale. Even if the property goes into the sale, you still have the right to stay there. Your lease is still valid until a foreclosure is final and that could be year or more later. However IF there is a foreclosure and it is final, the new owner does not have to honor your lease. You will be notified of the tax foreclosure, at least by a sheriff posting on the door. From the time of this notice it will likely be at least 4-6 months before the home is lost.
To protect your interest you can pay the taxes. I would go down to rent court and see if legal aid could help you in this situation. I suspect that you could have the court hold your rent in rent escrow until the landlord paid or let you pay the taxes apply it to the rent.
What if I lose my home?
If the worst comes to pass and the tax sale foreclosure becomes final, the tax certificate holder has to pay you for the house based on his or her bid at the auction. This money will first go to pay any mortgages or other debt attached to the property and you will get any money left over. It might be a small consolation but you may actually get a payout for selling your home.
Disclaimer: I am not an attorney and the above is not intended as legal advice. The above is simply my laypersons understanding of Maryland law. Tax sale laws vary by state. The above may be totally inappropriate for states that sell tax deeds.
Last night Baltimore’s Mayor Dixon hosted a town hall style meeting about vacant and abandoned house problem. Mayor Dixon, Housing Commissioner Paul Graziano, Deputy Commissioner Code Enforcement Michael Braverman and panel of city officials spoke about how the city is handling the vacant properties they own.
Three ways to acquire Baltimore city owned property
Listening to the panel I was impressed that the city has taken steps to correct some of the problems with acquiring city owned properties. Yet it seems they still don’t understand some of the problems. They spoke of three programs.
Rolling Bid Program – where small investors and developers can purchase properties from a list of properties available.
Request For Proposals (RFPs) – where bundles of properties are offered to developers that can handle larger projects.
Scope – Selling City Owned Properties Efficiently. These properties are listed with real estate agents.
The rolling bid program is a little known program which you can find along with Scope properties and RFPs on the Baltimore Housing website. The last thing you could call the SCOPE program is efficient. Few investors bother because of the hoops you must jump through.
I am sorry I didn’t catch one of the panelist’s name but he said he has been very good at getting deals approved by the Board of Estimates. The city’s goal is to get these properties in the hands of someone who can get the job done. That is more important to them than getting top dollar. If you put in a proposal make sure you emphasis how qualified you are, particularly financially.
Baltimore Land Bank Authority
In addition to these existing programs they spoke about the Land Bank Authority they want to create. This has been approved on the state level and is now waiting for City Council approval. This will give the city more flexibility in acquiring & disposing of properties.
MAREIA represents the small investor
After the official presentation many attendees got up to make comments or ask questions. The small investor was well represented, as approximately 25 members of the Mid Atlantic Real Estate Investors Association (MAREIA) showed up. Government affairs Committee Chairman Babara Klaput, President Alan Chantker, and myself all gave our feedback to the panel.
The City has done a good job of acquiring vacant properties. They own approximately 10,000 of the estimated 17,000 vacant properties in the city. However they have done a very poor job of getting them in the hands of capable renovators. This meeting makes me believe that will change, but that change will be slow in coming.
The Baltimore County tax sale will be held Wednesday June 3, 2009, at the County Council Chambers, 400 Washington Ave, Room 205, Towson, Maryland at 9 a.m. You must pre-register for the sale by May 29 at 4:30 p.m. Registration is free. More information and the property list are available a the Baltimore County website. There are about 3400 properties listed to go into the sale.
Howard County Tax Sale
The Howard County tax sale will be held Wednesday May 13, 2009 at the Ten Oaks Ballroom, 5000 Signal Bell Lane, Clarksville, MD 21029. The sale will start at 10:00 am and the doors will open at 9 am. You can get a list of properties and more information at the Howard County website. There are currently about 1,000 properties listed for the sale.
In order to bid you must pre-register before May 8th. You can register at 8930 Stanford Blvd., Columbia, MD 21045. You must provide a $1,000 deposit in cash or certified funds to register.
Something my friend Pete Gardini often says is to take massive action. You are not going to be successful by sitting around doing nothing. Goals are great, thinking and planing are important, research is necessary, and going to seminars and reading real estate books ( and my blog 🙂 ) are all valuable. However real success is about taking action. At some point you have to get out there and do something.
Inspecting 70 properties
As a tax lien investor, this is a busy time for me getting ready for the Baltimore City tax sale. It is important, especially in Baltimore, to check out the properties before you bid on them. There are lots of decrepit buildings and vacant lots in the city. You need to know what you are bidding on. (see this post about a bidder who paid big $ for an empty lot. )
Today I inspected 70 properties. I had stopped at 67 and counted them up and figured that was enough for the day. I was beat. But I couldn’t resist checking a few more as I drove out of town and wound up with 70 total. That is my idea of massive action. What is yours?
What is your massive action?
A lot of readers come here to learn about tax lien investing. But that may not be the right strategy for you. Figure the right strategy for you and then take massive action. No you don’t have to inspect 70 properties in a day to be successful in real estate, but you do need to take action consistently.
You need to be marketing, talking to buyers and sellers. You need to be inspecting properties, and making offers. This business doesn’t just happen – you make it happen. If you make the effort you will be rewarded. If you keep doing what successful people do long enough and consistently enough, you too will be successful.
My friend Steph’s idea of action
Steph is a regular on several online forums. I met her in person for the first time at a Steve Cook Seminar. Steph is one determined lady. If you want to see what it means to take action and what real persistence means I recommend you check out her blog Flip this Wholesaler. Read her blog and you’ll get a great idea about what I mean by taking action. Sometimes she wears her heart on her sleeve and you will see all the ups and downs of being an investor. But most importantly you will see what it takes to be successful.
Another new real estate investing club is coming to the Washington DC area.
The Real Deal Investment Club of VA
The first meeting will be held this coming Thursday April 23 2009 from 7-10:00 pm
The location will be: the Hampton Inn, 5821 Richmond Highway, Alexandria, VA 22303
The Real Deal of VA will meet monthly every 3rd Thursday of the month.
The Real Deal Investment Club of MD
Don’t forget about the Read Deal in MD. Their next meeting is Tuesday the 21st of April 6-9pm at The Meeting House ~ 5885 Robert Oliver Pl. ~ Columbia, MD 21045
I have really enjoyed the two meetings I went to in Columbia and expect the Virginia club to be just as good. One of the best ways to learn and succeed in investing is to go to your local real estate investing club. If you are near either of these two clubs you should check them out.
Comments Off on A New Club in Northern VirginiaTags:real estate
I am fortunate to be a member of a high level mastermind group. I am continually impressed with the ideas, knowledge, and success level the members of my mastermind group generate. Two members of my group are putting on an exciting event later this month, The Exponential Wealth Conference. The conference will be Two days Friday April 24, & Sunday 26, 2009 with multiple speakers, and jam packed with info. Click here to see the complete schedule
The man who negotiated with Warren Buffett
I am not just telling you about this because it is put on by my friends but also because I know this will be a great event. I know my friend Pete Gauthier is both an excellent negotiator and great teacher of negotiating because I have heard him speak first hand. Pete Gauthier sat across from Warren Buffett at the negotiating table during his stint as as a lead negotiator for the Pilots Union.
All the other speakers; Dan Sprietzer – Business coach extraordinaire, Edwin Kelly – Investing in real estate with your IRA, Tom Zeeb – Automating your business are top notch. I have never heard the featured speaker Richard Flint, but my friend Dan assures me I will be impressed.
I am a big fan of education. There is no better place to invest your money than in yourself. When Dan told me about this event I really wasn’t excited about spending another $2-3,000 for a multi-day event. I love these things and they have really helped me succeed to a high level but hey right now it’s just not in the budget. Then he tells me “It’s only $199.00!” Whoa, Big Change, it’s now only $49 ! ! !
by Robert Kiyosaki. In his book he talks about the Cash Flow game. The game is a blast and you will feel like a tycoon as you build your financial portfolio.
, 
, or 
. In this story a man meets a mentor who introduces him to other people who each teach him one lesson. There are five lessons. I won’t give them away but you can already figure from the name that point is you get more from giving and sharing than from putting your own interest first.
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