Tax Sale Forum Replaces TaxSaleLists.com (CFFL 412)
Recording Location: LATITUDE / LONGITUDE: 33.788937, -118.410360
Jack Butala: Jack Butala and Jill Dewit.
Jill DeWit: Hello.
Jack Butala: Hey, welcome to our show today. In this episode, Jill and I talk about how TaxSaleForum.com replaces TaxSaleLists.com, and the two or three other surviving sources for back tax information on the internet. Let’s get into it though before we do, let’s take a question posted by one of our members on the Land Investors online community. It’s free.
Jill DeWit: Cool. So Kathleen … Hi Kathleen, wrote, “I have a buyer who wants to close their title. I haven’t done this yet and I need to know the process and logistics. I’m working up a purchase agreement tonight. I will send the buyer the purchase agreement for signing after he makes a deposit through my website or bank wire transfer. Once I get the signed PA back from the buyer, then what? He’s going to cover the cost of closing.”
Jack Butala: Wow, Kathleen. You did everything right.
Jill DeWit: Yeah, this is wonderful.
Jack Butala: Great work.
Jill DeWit: I say, great. The purchase agreement … I like it even before any monies changed hands, personally. Because it spells out all the details in there. But either way, what you’re doing is fantastic. So in the purchase agreement, I would just make sure you put in there all the details, like he is covering the cost of closing. And how he’s going to pay, and timing, and all the property information. Anything like that.
And then you’re going to give that over to your title agent when you open escrow and start the whole process.
Jack Butala: Yes, so this is a great question. As always Kathleen, you always ask great questions. Before I would even put the purchase agreement together, the minute the guy said, “I really want to buy it this property, but I need to do it through title insurance”, I would find a title company that wants to close a deal, that’s geographically closest to the property. At least at this stage in your career. When you get to our point, where you have like one agent that covers a whole country, for a bunch of reasons but we’re going to skip that for now.
During the first few deals, the first ten deals, let’s say, you want to find a title agent that’s real close to the property, and explain the whole situation to them. And this is what you’re going to say. “I own a piece of property, I bought it free and clear, and I purchased it through a … ” I’m pretty much assuming that you purchased this by generating your own deed. You didn’t purchase it through title insurance in the first place. Explain the whole situation. “There’s no lender, I’ve took a down payment, a deposit through my credit card scenario, and will you please close this deal?” And nine times out of ten they’re going to say, “Heck yes, thanks. We can do it real fast. This is easy.”
There’s no real estate agent. There’s no lender. There’s none of this stuff. They love these deals in general. But it’s that tenth time you gotta be concerned ’cause this is a little bit out of the regular focus for, let’s say a house deal, so they may refer you to somebody else.
So you want to secure that agent as soon as you can. Then they’ll handle all this stuff for you. They’ll do the purchase agreement. They’ll make sure the deposit goes where … They’ll do all the work for you. You know, Jill and I teach this, do your own deal thing here at Land Investors but the price of title insurance is going down and down and down. We have members that are reporting doing deals with full blown deals for three and four hundred dollars which is never happened in my career.
Jill DeWit: I know. [crosstalk 00:03:24] The last I thought 750 was great.
Jack Butala: Yeah me too, Jill. It got down to 700. It’s like gas prices. It got to 700 bucks and I was jumping up and down. Now it’s three and four, so which prompted us by the way, and this is not a plug, to start a company called TitleMind.com and the site’s being worked on right now. If you go there this minute, you can type your email address and get notified when we release it, but long story short, what happens is, if you’re in Kathleen’s situation, and tons of our members are, you type in your information, you hit send, and it notifies the title companies that are in the area of this … It does the work for you and it chooses a title company and they do the pre-negotiated rate and all the things.
So, it answers this question, is what it does. But you still need to know how to drive a stick, right?
Jill DeWit: All good!
Jack Butala: So I hope that answers the question. Honestly, shoot for 700, it’s probably going to be a little bit more.
If you have a question or want to be on the show reach out to either one of us on LandInvestors.com. Even I am not even completely used to the Land Academy to Land Investors change.
Jill DeWit: Cool.
Jack Butala: Today’s topic, TaxSaleForum.com replaces TaxSaleLists.com and a couple other websites around the internet as your source for back tax, real estate back tax information, this is the meat of the show.
Jill DeWit: Why’d you not call it that, by the way?
Jack Butala: It was an honest mistake. I was sitting here reading it saying, you know, maybe I should call it something else.
Jill DeWit: [inaudible 00:04:55]
Jack Butala: Honestly that’s what I’m doing.
Jill DeWit: Okay good. Like ’cause this is a hot topic. This is really big. I mean, we can talk about this a lot too by the way. We could do a whole other show on this. The number of people that are hung up on back taxes, doing it the wrong way. There’s a right way to use back tax information and a wrong way to use back tax information.
Jack Butala: Oh Jill, I didn’t tell you, I forgot. We’re going to change our whole business model and focus to only mailing back tax property.
Jill DeWit: Could you imagine?
Jack Butala: Oh yeah. From here on out today, you know, follow my lead here, we’re just going to do …
Jill DeWit: Could you imagine? Oh my gosh. I’d be like, “Oh, I’m out! That’s it!”
Jack Butala: We want our members to …
Jill DeWit: I want all problem properties.
Jack Butala: And we want you to miss 90% of the opportunity out there.
Jill DeWit: Yes! Perfect, I love it. So please share with us why this is better and what’s coming, please Jack.
Jack Butala: So there’s a few resources on the internet about back tax properties. There are a few that are even worth mentioning and they’re really actually not worth mentioning so a lot of these entities that we’re starting right now, I got disgusted and fed up with the lack of level of detail that people are charging for on the internet on this topic and some other ones.
There’s a tremendous opportunity to buy back tax property if you’re doing it correctly. So we set up a website and it’s literally the face of the website … It’s not there yet but if you go there right now, if you go to TaxSaleForum.com and type in your email address, you’ll get notified when we release the site but it’s essentially … You literally go to the site, it’s a picture of the United States, you click on the state that you’re interested in. And then it’s a picture of all the counties. Clickable map for all the counties. And you click on the county and it gives you a tremendous amount of information about the back tax situation in that county.
Some states like Arkansas and Florida have statutory rules at the state level about how all counties deal with it and then they roll it up in one place. Arkansas and Florida are two of those states.
Some states like Texas, and this is what this site is for. I know this stuff, it’s in my head. Because I’ve been doing this for-
Jill DeWit: Do ya?
Jack Butala: I actually do.
Jill DeWit: Do ya?
Jack Butala: It doesn’t come out of my mouth properly. But it’s in my head.
Jill DeWit: Okay, good. I was just checking.
Jack Butala: It’s easier to explain it on a website than on a talk show.
Jill DeWit: Ah. Got it.
Jack Butala: As evidence by this …
Jill DeWit: Episode. Thank you.
Jack Butala: This episodic …
Jill DeWit: Rant.
Jack Butala: So most of the places like Texas, every county’s different. So you wanna click in there and get to know … By three or four clicks away from any county in the country, really getting to know what the heck’s going on there. It really digs deep from a research standpoint. We’re spending a lot of money on this stuff to get you where you need to go to find out if you wanna buy property in X, Y, Z county in Texas. Or anywhere.
You know, it’s 3,200, almost 3,300, 3,400 counties in the … I think it’s 3,240. Some number like that. In the whole country so we’re spending some dough on this. So there’s a lot of things going on with it. So it’s a deep, rich, real resource for our members to know about back tax property and some of it’s easy. Some of it, once you get to know about it, is easy too. But what you don’t wanna do is order a list from the county and then get it and then try to manipulate it and send people letters.
Jill DeWit: Would you mind just giving a few minute explanation, Jack, on what you use that research for? Just to say like, “Why would I even care?” kind of thing ’cause I’m not just mailing to those people. Can you just give a little snippet of what that information does?
Jack Butala: Yeah, there’s two reasons. One, the way we use it and the way we talk about it in our program is this. If there’s a county, like let’s say Mojave County Arizona, that constantly, for whatever reason, has a lot of properties that are in back tax status, that tells me as a land investor that that’s a county that I might be interested in sending everybody letters in. Certainly, not just people that have back tax property, but owners that have properties just like the back tax property but there’s no back taxes on them.
It’s an indicator. Like a lot of things are an indicator about why you might want to send an offer to an owner.
Jill DeWit: Do you know the psychology behind it or you just know based on experience?
Jack Butala: I know based on experience that if there’s a bunch of back tax property in a county that there’s also way more property that does not have back taxes on it. And with owners that have just been … They’re not gonna do anything with it. All right? They want a letter. They want an offer and they want … It’s not that they want the money, they just want to be done with it.
Jill DeWit: Right.
Jack Butala: They want to stop getting a tax bill. So that’s one way to use it. The second way is to heavily get in, if your a career tax lien buyer or a career tax deed buyer, which Jill and I were for years and years and years before we saw the light of sending offers. This is gonna tell you exactly where to go. If you use the site properly, it’ll tell you … You know, there’s a calendar in there, for Pete’s sake. There’s a calendar that says, “Tomorrow there’s an auction in Idaho and after that, there’s an auction in Montana. And the next day …” And on and on. There’s a tax auction, plus or minus five percent, every single day. Usually multiple auctions every day. You can make a career out of driving around buying extremely cheap property and posting it on the internet.
I say that from experience ’cause I did that for a bunch of years.
Jill DeWit: I know. Exactly. [inaudible 00:10:42]
Jack Butala: Turns out, it’s a heck of a lot easier to … Yeah.
Jill DeWit: It’s fun once in a while. I don’t know. I mean, it could be your business model. But for us, it’s fun once in a while. I don’t really wanna drive around all the time doing that.
Jack Butala: It’s way more time efficient to send letters out, offers out. Especially if you have kids and other … If you have a life. When I was doing that, I didn’t have a life.
Jill DeWit: That’s true.
Jack Butala: That was my life.
Jill DeWit: That was your life. I’m glad you’re not doing that anymore ’cause now you have a life. You have a pretty good life. Look at your view.
Jack Butala: Can you believe where we are right now?
Jill DeWit: I know.
Jack Butala: Hey, by the way, if you don’t know this, wherever you’re listening to this program, I always put the GPS coordinates from where we’re recording right in the posting. So if it’s off our website or on iTunes or anywhere else, the GPS coordinates are in there. Pop them into Google Earth or however you see GPS coordinates, it’s pretty cool.
Jill DeWit: You just put it any map. Instead of 123 Main Street, you can just pop in the GPS coordinates and it pops right up. A lot of people don’t know that.
Jack Butala: Yeah.
Jill DeWit: Cool.
Jack Butala: So there’s a huge opportunity in tax lien and tax deed investing. There’s companies like … There are publicly trading Wall Street companies that invest in heavily so … You know, it cracks me up. This is a classic case of “I gotta start a company that does this, no one’s doing it”. I didn’t do this flippantly. I searched and searched and searched on the internet to get a single source of tax deed and lien information. It doesn’t exist. There’s a couple of substandard ones out there but that’s it.
Jill DeWit: Yeah. Thank you for doing this.
Jack Butala: Yeah.
Jill DeWit: You are-
Jack Butala: I get a kick out of it.
Jill DeWit: Saving us all.
Jack Butala: Wow. I don’t know about that. The fact is, I get a kick out of it.
Jill DeWit: Thank you. [crosstalk 00:12:22] Sure, solve another problem. That’s how we kinda roll. Well you know what? We see something, we know we need it … You know what’s interesting, that’s how it goes. If we need it, we know somebody else needs it too. And here we go.
Jack Butala: Yeah. The name of the site is TaxSaleForum.com.
Jill DeWit: Well let me say something about that.
Jack Butala: We also own TaxSaleLists.com.
Jill DeWit: I was gonna say, go to TaxSaleForum.com and get on the list if you want right now. It’s coming so depending on when you’re listening to this, go get on the email list to get advance notification for when we turn it on and you can get at all this too.
Jack Butala: Exactly. You know the information changes a lot too, that’s the thing. So we have staff people that are constantly trying to see where links have changed or something’s gone south, or rules have changed. So really, the whole business model here, Jill, is for us to … For our members and half, part-time investors that may or may not be even in our group, to replace their FTE’s. To replace their full-time equivalent people. So they don’t have to do it.
Jill DeWit: Or replace their own FTE.
Jack Butala: Eventually, you won’t have to do anything except just sit there.
Jill DeWit: Exactly.
Jack Butala: The money will hit you in the face.
Jill DeWit: Oh my gosh.
Jack Butala: I just got an image of that.
Jill DeWit: That is good. Oh no. Oh boy. That would be a funny video. Okay. Go ‘head.
Jack Butala: Join us another episode where Jack and Jill discuss how to use information, that’s me-
Jill DeWit: And inspiration, that’s me-
Jack Butala: To do just about anything you want.
Jill DeWit: We use it every day to buy property for half of what it’s worth and sell it immediately.
Jack Butala: You’re not alone in your real estate ambition.
I think that was actually informative.
Jill DeWit: That was very informative. We’ve had two really heavy, good things are coming, hopefully the beginning of the week shows because this is important stuff. By Friday, I don’t think anybody’s paying any attention. And so that’s why I say that.
Jack Butala: Including us.
Jill DeWit: Exactly.
Jack Butala: We could structure it that way.
Jill DeWit: On Friday, we talk about our weekend plans.
Jack Butala: Yeah. Exactly. Maybe we should structure it like that.
Jill DeWit: Exactly. Love it.
Jack Butala: Information and inspiration to buy undervalued property.
If you have any questions or comments, please feel free to email me directly at jack@LandAcademy.com.
I would like to think it’s entertaining and informative and in the end profitable.
And finally, don’t forget to subscribe to the show on iTunes.