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Created by:Tommy Senatore

Home Study PackUS Tax Lien & Deed Training

IMPORTANT COPYRIGHT NOTICE No portion of the written notes, DVDs or CDS may be recorded or reproduced! IMPORTANT DISCLAIMER To ensure you gain the best possible benefit from this Tax Lien & Deed Home Study Pack (‘this resource’) please read the following disclaimer that outlines several important legal issues which are stated for your and our protection. 1. Does the information at this Resource constitute advice? This resource is intended to provide general details on how the various presenters invest in real estate in the US. As such, the course content and written notes do not constitute specific financial advice, rather they are general educational resources presented with the aim of helping you to improve your investing skills. Accordingly, it will be necessary for you to consult with your own legal, accounting and other advisers to ensure that the concepts you learn from this event can be tailored to your specific needs. Please note that Tommy Senatore, TLD International LLC, Property Investing.com Pty Ltd and associated parties do not hold an Australian Financial Services Licence and do not intend to provide financial advice. This will preclude Tommy Senatore, TLD International LLC, Property Investing.com Pty Ltd and associated parties from recommending specific financial products, specific investments or attempting to sell you financial products. 2. What are the risks involved? You should also be aware that successful US real estate investing requires the application of diverse skills and significant effort. Like any investment, there exists an element of risk - including the risk of financial loss. Only you can assess whether or not you have those skills together with the ability to manage the ongoing inherent risks. 3. Acknowledging the law changes! This seminar is presented based upon the known laws of Australia and the US. No doubt you appreciate that these laws may change without notice - in particular, governments regularly changes laws pertaining to income tax and local planning. If you plan to invest then you need to acknowledge that you will have to obtain specific legal and accounting advice to ensure that information presented at this seminar is appropriate in your state / territory / country. 4. Your acknowledgment. By using and / or retaining these notes you certify that you have read, understood and consented to the terms of this disclaimer document. Specifically, you:

• Agree and accept that the information provided does not constitute financial advice

• Understand there are risks, including the risk of financial loss, inherent in any investment and property is no different

• Acknowledge that it may be necessary to seek paid professional advice in order to apply this general investing content to your own specific circumstance.

Introduction

Hello and welcome to the home study edition of my recent 2-day tax lien and deed training. It’s a special privilege to be able to provide you with this resource. As you read the notes, watch the DVDs and listen to the audio CDs, you will be educated, encouraged and empowered to invest in US tax liens and deeds. Both offer many exciting opportunities, especially in the current economic climate. Although it’s certainly true that US property prices have fallen sharply in most States, as Steve McKnight says, as long as people live in houses you can make money from real estate. No doubt some of the terms and concepts will be new and seem rather odd, but please try to keep an open mind. I have set aside plenty of time over the weekend to answer your questions. You’re probably particularly interested in finding out how to invest in tax liens and deeds from Australia. The good news is that this is perfectly possible as many liens and deeds can be purchased online. But enough of that for now… we have the equivalent of two full days of training ahead of you as you work through this resource! I hope you enjoy the training and find the information useful, practical and above all else, profitable! Sincerely, Tommy Senatore CEO, TLD International LLC

What’s Included

Before you get started, I suggest you spend a few moments familiarizing yourself with the contents of this Home Study Pack. 1. Written Notes The written notes are adapted from the PowerPoint slides that were presented at the seminar. However, to help make sure you have identified a key point, the slides sometimes have gaps (shown as ________) which you will need to fill in from watching the DVD or listening to the audio. The written notes also contain additional information which are included to help provide clarification or to expand on topics in more detail for those who want more specifics. 2. DVDs The entire live seminar was recorded and has since been professionally edited and reproduced over four DVDs. These DVDs should work in your computer (if you have a DVD drive) and on your home DVD player. 3. Audio CDs For your convenience, the audio of the event is also provided over 11 audio CDs so you can listen along in the car or at home via your CD player. MP3 files for the audio are available and details of how to download them will be emailed to you.

Further Help Don’t forget that you also have 12 months access to my VIP Tax Lien Club – an online resource and community which includes:

• Regular live webinars where I provide updates and answer questions

• Unrestricted access to the library of previous webinars • VIP Online forum • Updates as needed to ensure you remain fully up-to-date

with changes and developments in and to tax lien and deed investing.

Your 12 months access begins on 1 August 2010. To access it you will need to activate your membership. You can do this by sending an email to: [email protected] When emailing, please ensure the email subject line says: ‘Activate Tax Lien & Deed Club Membership’ How To Use This Resource There is a lot of information at your disposal. To ensure you get the best benefit I highly recommend that work through the written notes as you watch the DVDs. As you have questions, please write them down. You will probably find that they are answered at a later time on the DVDs, but if not, you can always make a forum post as part of your Tax Lien & Deed Club Membership privileges. With that in mind, I invite you to load DVD 1 and let’s begin.

Day One: Tax Liens

Part One: What Are Tax Liens?

Session Objectives:

By the end of this session:

• Confidently explain what a tax lien is

• How they work at a basic level

• The likely returns

• Identify the key parties

How Tax Liens Work:

In Australia In The US

Tax Liens Are:

1. Unpaid _________ taxes,

2. sold by the Country

3. to __________

4. for a set return.

1. Property Taxes:

Property taxes are a contribution each property owner must

pay to fund:

• Public buildings

o Hospitals, schools, libraries

• Pay public servants

o Police, County Offices

• Maintain amenities

o Roads, sewers, parks, sidewalks, street

lights

Property taxes are:

• Set by the County according to their budget needs

and usually work out to between __% and 3% of the

property’s value

• Are levied annually

• Different States have different due dates

Let’s look at an example of the annual property tax notice as

sent out by the County (next page)

2. Sold By The County

• Federal law requires at least ____ annual sale

• Used to be done on courthouse steps

• Now being replaced by online auctions

County Officials

• Tax Collector

o Levies the property taxes

o Collects the tax

o Sells tax liens

o Administers redemptions

• Property Appraiser

o Sets or establishes property values

o Reports to the tax collector

o Distributes data via website

o Reports property sales

• County Clerk

o Handles the legal aspects behind foreclosures

o Maintains a database of legal filings

Relationship

Websites

Property Appraiser: www.leepa.org

Tax Collector: www.leetc.com

County Clerk: www.leeclerk.org

3. To Investors

• No restriction on foreign ownership

• But MUST comply with

• IRS registration requirements

• County registration requirements

• Not difficult but time consuming

4. For A Set Return

• State by State mandated

• Lowest: 8% per annum

• Oklahoma

• Highest: 25% every six months

• Texas

• Some states have set minimum returns

No Tenant Hassles

Because you don’t own the property

• No tenants

• No maintenance / repairs

• No phone calls

• No tenant hassles!

Investor Process

Tax Lien Process

Redemption Process

Foreclosure Process

Priority

• Government Liens

• Mortgages

• Judgments

• Other Liens (non property taxes)

• Owner

Example

07 Tax Lien $

08 Tax Lien $

Total $

Cash Back $

Cash Down $

Interest $

Actual Return %

Annualized Return %

Part Two: Buying Tax Liens

Session Objectives:


• Know where to buy tax liens

• Understand how to invest in tax liens

from Australia

Where To Buy Tax Liens:

Annual Auction

• Online or Live

Over the counter purchases

• Online or Live

Review the list of counties currently offering online live

auctions (see next page)

• Held at different times for different Counties / States

• Must register to participate

List Of Online Auctions (Florida)

Alachua http://www.alachuataxsale.com Baker http://www.bakercountyfl.org/taxcollector/TAXSALEI.htm Bay https://www.taxcertsale.com/BayTaxSale/ Bradford bradfordtaxcollector.com Brevard http://www.brevardtaxsale.com Calhoun http://www.calhouncountytaxcollector.com/TaxCertificates.aspx Broward www.bidbroward.com Charlotte https://www.bidcharlottecounty.com Citrus http://www.bidcitrus.com Clay www.bidclay.com Collier www.collierclerk.com Columbia http://www.columbiataxsale.com DeSoto www.desotocountytaxcollector.com Dixie http://www.dixiecountytaxcollector.com/ Duval http://www.duvaltaxsale.com Escambia http://escambia.taxsale.com Flagler http://www.flaglertaxsale.com Franklin http://franklincountytaxcollector.com/TaxCertificates.aspx Gadsden http://www.gadsdentaxsale.com Gilchrist http://gilchrist.taxsale.com Glades http://www.mygladescountytaxcollector.com/TaxCertificates.aspx Gulf www.gulfcountytaxcollector.com Hamilton http://www.hamiltoncountytaxcollector.com/Hamilton%20County%20

Certificates.txt Hardee hardeecountytaxcollector.com Hendry http://www.hendrytaxcollector.com/RealEstateTaxes/DelinquentTaxes

/tabid/798/Default.aspx Hernando http://www.hernandotaxsale.com Highlands www.BidHighlandsCounty.com. Hillsborough https://www.hillsboroughtaxsale.com Holmes www.holmestax.com Indian River http://www.indianrivertaxsale.com Jackson http://www.jacksoncountytaxcollector.com/Jackson%20County%2020

09%20List%20of%20County%20Cert.txt Jefferson http://www.jeffersoncountytaxcollector.com/ Lafayette http://www.lafayettetc.com/ Lake http://www.bidlaketax.com Lee https://www.leetaxsale.com Leon http://www.leontaxcollector.net/TaxSale.html Levy http://www.levytaxsale.com Liberty http://www.libertycountytaxcollector.com/ Madison http://www.madisoncountytaxcollector.com/ Manatee http://www.taxcollector.com Marion http://www.bidmarion.com Martin http://www.taxcol.martin.fl.us Miami-Dade http://www.bidmiamidade.com Monroe http://www.bidmonroe.com Nassau http://www.nassautaxsale.com

Okaloosa http://www.bidokaloosa.com Okeechobee http://okeechobeecountytaxcollector.com Orange http://www.orangetaxsale.com Osceola http://www.bidosceola.org Palm Beach https://www.palmbeachtaxsale.com Pasco www.bidpasco.com Pinnellas https://www.BidPinellas.com Polk http://polk.taxsale.com Putnam http://www.putnamtaxsale.com Santa Rosa http://www.santarosataxsale.com Sarasota http://sarasota.taxsale.com Seminole http://www.seminoletaxsale.com St. Johns https://www.sri-auctionsonline.com/ St. Lucie http://www.bidstlucie.com Sumter http://sumtertaxcollector.com Suwannee http://www.suwanneetaxsale.com Taylor http://www.taylortaxsale.com Union http://www.unioncountytaxcollector.com/ Volusia http://www.bidvolusia.com Wakulla https://www.taxcertsale.com/WakullaTaxSale/ Walton http://www.waltontaxsale.com Washington http://www.qpublic.net/wctc/index-tc-search.html

Online Bidding Process

1. Register to get Bidder ID

2. Place your bids *

3. Submit a deposit to determine bid limit *

4. Auction is held

5. Provide payment by due date

Annual Live Auction

• Must register beforehand

• Must leave a deposit

• Held in a closed room

• You or your proxy must attend

• Payment from immediate to 48 hours

Bidding Types

1. Bid down method

2. Round-robin

3. Random number / Lottery

Over The Counter

In General

• Registered with the County

• Have funds ready

o ACH, Wire, Cash, Certified Check

o Credit Card (fees apply)

Live

• Tax certificate number

• Payment details

• Your (your proxy) must attend the Tax Collector’s office

Via Phone

• Tax certificate number

• Payment details

• Credit card may be best

• Remember the time differences!

Direct From The Tax Collector

• Visit tax collector website

o Not all county websites are the same!

• Search property taxes

• Look for delinquent tax lists

• Search county held files

Where To Go

Offline States

• Contact via phone or email

Online States

• Direct from the Tax Collector

• Proxy list distributors

Buying From Australia

Assuming you’re registered:

• Annual Online Auction

• Over The Counter

o Online

o Over the phone

o Via proxy

How You Can Pay

• Credit card (fee applies)

• Wire transfer (delays likely)

• Pay from your US bank account

• ACH, certified check, wire transfer

Assignment Of Tax Liens

• Can buy / sell liens to other parties

• Need to do an ‘assignment’

• Each county has its own forms and processes

Part Three: Tax Lien Selection

Session Objectives:


• Consider what makes a good investment

• Use the internet to research liens

• Be able to complete a live review

Step One Decide on your desired outcome

• Income

o Maximize your percentage income return

• Asset

o End up with the asset at a massive discount

Income – Look For

Single Family Home (principal place of residence)

• _______ occupied

• Usually mortgaged

• Historically has the best redemption rate

Face Value > $_______ & <$_______

• Most affordable

• Minimal competition

• Allows you to spread risk

CMV >$_______ & <$_______

• Representative of the ‘average’ house

• Where ‘normal’ working people live

• Represents good quality for price

• Most inventory

Strategy

• Hold until they redeem

• Reinvest back into other tax liens

o Same County

Over the counter (in same year)

o Different County / State

Online / Live / Over the counter

Asset – Look For

Investment Properties

• No personal attachment to the property

• Potential for unoccupied or abandoned

• Maybe focus on multi-family

Face Value <$__________

• Non-homestead properties taxed more

• Any higher and there will be increased competition from

major investors

CMV <$__________

• Low income / working class neighborhoods

• Assets are normally neglected and have fallen

substantially in price

Strategy

• Pick up for a substantial discount against appraised value

• Flick to another investor for a small profit

(say $_____k to $_____k)

• Rehab and rent

Advanced Ideas

Income

• Properties for sale

• Properties with ___ years tax liens outstanding

• Properties in foreclosure

Asset

• Pay out the outstanding liens from ___ years ago and

immediately begin the foreclosure process

What To Avoid

• Vacant land

• Where outstanding tax liens are >____% of the

value of the property

• Code violations, environmental hazards

Online Auction

Over The Counter

Live Demonstration

Fill in the tax lien analysis form as we go (see rear of this manual)

Part Four: Redemptions

Session Objectives:


• Understand how tax liens redeem and how you are repaid

• Appreciate banking options in the US

Important Points

• You do not have direct contact with the property owner

• Everything is done via the Tax Collector

Process

• Property owner pays all taxes and interest owing to the

Tax Collector

• Tax Collector processes, cancels the tax lien, writes a

check to the Investor and mails it to the nominated

address

Part Redemptions

• Not allowed

• Full amount must be paid

Checks To Australia

• Tax Collector will mail them to you

• USD checks can be deposited into your normal Australian

bank account

• Bank fees apply

• May take up to 30 days to clear

• Conversion rates may not be great

US Bank Account

Own name:

• Citibank can set it up here in Australia, but there are no

branches in Ft Myers

• In this case we can mail the checks on to the nearest

branch for you

Other Entity Name:

• Set up the entity

• Have your attorney / agent open the account in the short

term

• When you come over, add your name and remove theirs

Part Five: Tax Lien Game

Session Objectives:


• Have some fun buying tax liens

• Look at how you can reinvest redemptions into other

available tax liens

Tax Lien Game - Aim

Get as much interest as possible by buying tax liens and

reinvesting the proceeds from periodic redemptions

Rounds

• Start

• Buy whatever combination of tax liens you like up to a

maximum of $10,000

• Hold surplus money as a cash balance

• Record entries on your Game Card

• Round 1 (after six months)

• Six months later

• Some liens will redeem

• Reinvest monies into buying other liens



• Round 2 (after twelve months)

• Twelve months later

• More liens will redeem

• Reinvest monies into buying other liens



• Round 3 (after eighteen months)

• Eighteen months later

• More liens will have redeemed


• Calculate how much interest you have

• Other Rules

• You can only buy each tax lien once

• You cannot buy a tax lien after it has redeemed

• No pooling of funds allowed!

• Everyone must participate

Two bedroom, two bathroom home in an average area. House built in 1986 and in good condition.

Ref Face Value Type Interest Rate CMV

09-0001 $1,569 SFH 18% $145,570

Newish three bedroom, two bathroom home in an average area. House in excellent condition.


09-0002 $5,120 SFH 18% $187,690

12 unit apartment concrete block in good condition in a highly popular rental area.


09-0003 $8,072 Multi Family > 10 18% $314,000

Vacant parcel of land where house has been recently demolished after a code violation.


09-0004 $650 Vacant Land 18% $11,500

Upmarket mobile home in an excellent area with low vacancy and solid demand.


09-0005 $3,869 Mobile Home 18% $200,730

Four-plex older style apartment building with easy beach access. Needs some minor repairs.


09-0006 $8,260 Multi Family <10 18% $416,570

Running Cash Balance B / R

Lien Ref Value Type Interest % CMV In Out Balance

Start - spend as much as you can up to $10,000 Opening Cash Balance is $10,000

$ $ $ $ $

$ $ $ $ $

$ $ $ $ $

$ $ $ $ $

$ $ $ $ $

$ $ $ $ $

$ $ $ $ $

$ $ $ $ $

$ $ $ $ $

$ $ $ $ $

$ $ $ $ $

$ $ $ $ $

$ $ $ $ $

$ $ $ $ $

Part Six: Risks

Session Objectives:


• Understand the risks with tax liens

• Consider how that risk can be mitigated

• Understand FX transactions

Bad Property

Natural Disaster

Inaction

Liquidity

You don’t know when you’re going to be repaid

• 1 Day up to 2.5 Years

• No established secondary market in tax lien purchases /

sales

Cash Flow Management

If you borrow you’ll pay interest on your debt as you go, but the

interest received on the tax lien is not paid until redemption

Bankruptcy

• Slows the process down

• Judge could limit the amount of interest

• You will always get paid – eventually!

Currency Management

Basic Strategy

• Reinvest interest and build up an independent capital base

• Bring back capital when rates are favourable

Advanced Strategy

• Use forward exchange rates

• Lock in your rate up to 12 months in advance

Guest Speaker: Jon Sermin OzForex

Part Seven: Tax Lien Foreclosures

Session Objectives:


• Understand the options in various States for enforcing

your tax lien

• Understand the role of superior and inferior tax liens

What Is Foreclosure?

• You haven’t been paid within the required time

• You want to enforce your lien

• Transfer debt to cash or ownership

Different Types

Automatic By County

• Example: Missouri

• 10% interest & 12 months to redeem

• You send a certified letter to the owners

• Send proof of the letter and you’ll get the deed

Judicial Process

• Example: New Jersey


• You engage an attorney; cost $3000

• It can take 12 months for the court to issue the deed

County Redemptive

• Example: Florida


• You apply to the County to begin the foreclosure process.

o Fee $1000

• Deed is either transferred or auctioned

Other Issues

• Pay out other lien holders

• Every State above

• Florida above and below

• Finite deadline to act

• Varies from State to State

o Washington DC

o Must start within 6 months after redemption

period

• Florida

o Tax liens cancel after 7 years

• Homestead

• Extra rights of protection

o Add 50% of the appraised value to the

opening bid

o If there no other purchasers, then the tax

lien holder has to pay the extra 50%

Fast Forward 2 years

Is This A Good Deal?

• Yes, larger numbers, but…

• Property worth $406,380

• You bought for $206,111

• 49.28% Discount

Lesson

The cheaper the property, the more at risk you are with a

homestead exemption because the extra added on eats into

your available discount.

Part Eight: Compliance

Session Objectives:


• Completed your ITIN application

• Completed your W9 form (without your ITIN)

Form W7 (ITIN)

• IRS registration

• Will need an ITIN to participate in tax liens and tax deeds

• Will need to file a return and pay tax in the US on your US

profits

Form W9

• Needed by the Counties

• Tracks interest payments between County & IRS

• IRS matches information to your return

Your Notes On Compliance

Your Notes On Day 1 Debrief

Day Two: Tax Deeds

Part Nine: US Attorney

Use this space to make notes on the discussion with Marie –

Tommy’s US Attorney

Part Ten: Notarizing & Australian Structure

Session Objectives:


• Have your forms notarized

• Australian tax implications

• Investing in your SMSF

Tax Implications

• Pay tax in the US

• Pay tax in Australia

• Get a credit for US Tax Paid

Part Eleven: What Are Tax Deeds?

Session Objectives:


• What are tax deeds

• Different options

• Why things are always bigger in Texas!

Tax Deeds Are:

1. The transfer

2. of a property’s title

3. in lieu of __________

4. of outstanding property taxes.

How Tax Deeds Work

• Property owner must repay the tax lien by the due date

• Tax lien holder has the right thereafter to foreclose on the

property in lieu of payment

What If There Is A Mortgage?

• Wiped out as the title will be free and clear of all liens and

encumbrances!

Alternatives (See Appendix One For State Details)

• Lien & Deed State

• State will sell both a tax lien and a tax deed

• Deed Only

• State holds the tax lien but will sell the deed if the tax lien

is not _________ within the allowed time

• Redeemable Deed

• The deed is sold but the owner retains the right to reclaim

their property within a certain timeframe

Texas Example

Part Twelve: Buying Tax Deeds

Session Objectives:


• Why you might want to buy tax deeds

• Advantages

• Disadvantages

Our Focus Today

• Is not you becoming the owner from tax lien foreclosure

• Rather buying them as an investor as a good investment

Options To Profit

• ______ for positive cash flow & growth

• Add value

• ______ for increased value / rent

• Develop for higher and better use

• Flick for a quick profit

Advantages

• Lump sum _______ injections

• US tax benefits

• 1031 Like-kind exchange

• No shortage of opportunity

Disadvantages

• Time ________

• Need to be in the US

• Need good management team

Responsibilities As An Owner

Liable for:

• Property _______

• Insurance

• _________

• Code violations

Where To Buy Tax Deeds

Online Auction

In Person

In Person

• Online

• Pay a deposit to be allowed to bid

• Balance within 24 hours

• In Person

• No deposit required

• Balance payable

• The moment you win

• By then end of the auction day

Title Company

• Quiet title action

• Legal process to notify prior owner / interested parties that

the asset is no longer registered as security

• Pay an attorney to do this

250 Poe Av Nth Fort Myers

Part Thirteen: Selecting Tax Deeds

Session Objectives:


• Be able to perform a basic due diligence

Options:

• Land

• Industrial

• Commercial

• Single Family Homes

Hazards:

• Structural

• Quality of the building

• Environmental

• Contamination

• Land

• Zoning

Inspection Process:

• Online view

• Actually sight property (drive by)

• Street appraisal

• Neighborhood appraisal

Picking Homes:

From Afar…

• Under 10 years old

• Working class neighborhoods

• Max 45% of market value

On The Ground…

• Age not an issue

• Research resale prices

• Land / junkers okay… if you can flick them

Principal Info Sources:

Property appraiser

• Assessed value

• Sale history

• Age of the property

• Property characteristics

Tax Collector

• Detailed tax bills

• Current year taxes due

Code Violation

• Structural

o Exterior, roof, windows, doors

• Landscaping

o Lawns, rubbish etc.

Clerk of the Courts

• Debts person would owe

o IRS Lien (120 day notice)

• County liens

o Code violations

Comparative Sales Data:

• Zillow.com

• Trulia.com

• Realtor.com

• Rentometer.com (Rents)

Part Fourteen: Live Tax Deed Review

Session Objectives:


• Practical outline of how to analyze a property off the

internet

• But remember…

Further work is needed on the ground

Use This Space To Make Your Notes

Use This Space To Make Your Notes

Part Fifteen: Selling Property

Session Objectives:


• Understand your sales options

• Appreciate likely costs

Realtors:

• Many buyers usually go through a realtor rather than direct to

the owner

• Typically ____% sales commission paid by the seller

• Commission split to the seller’s agent and buyer’s agent.

Craigslist.com:

• Online classifieds

• Sell direct – no commissions

• ______________.com

ebay

• Search under ‘real estate’

• You just never know!

Part Sixteen: Administration

Session Objectives:


• Understand your obligations re:

o Paperwork

o Banking

o Accounting

o Compliance (Entity / IRS)

Paperwork - Liens

New file for each year

• Separate plastic sleeve for each property

o County paperwork

o Due diligence

o Redemption information

Paperwork - Deeds

New file for each property

• Tax deed

• Tenancy lease & details

• Insurance

• Other paperwork & correspondence

Banking

Most of it can be done online

• Sending Money Out

o ACH, Wire, Check, Certified Check

• Receiving Money In

o Online Deposits (ACH, Wire)

o Manual Deposits (Checks)

Accounting

• Bank reconciliations

• Profit & Loss

• Balance Sheet

o Loan accounts

o FX movements

Compliance

• IRS

o Financial ends 31 December

o Returns filed & tax owing paid by 15th April

o Don’t mess with the IRS!

• Entity

o Registered agent in that State

o Annual report filing

o Maintain proper records

o Maintain accurate contact details

Part Seventeen: Extra Support Services

Session Objectives:


• Outline how else I may be able to help you

Tax Lien Club (12 Months FREE):

• 12 months FREE access included

• Webinars

• Forums

• Information will be sent when I get back to the US

Other Services (Price On Application):

• Check drop off at the County Tax Collector

• Limited to Ft Myers and direct neighbouring Counties

• Drive by inspections

• US Corporation Set Up

Basic Support (US$49 per month):

• Receive your mail at our office

• We will scan non-junk mail and email it to you

• Larger items will be on-sent to you for at-cost postage

• Use our phone number as a US point of contact

• We will bank checks received in the mail at our office into

your US bank account

VIP Support (US$69 per month):

Everything included in basic support PLUS

• Will organise for certified checks arranged by you (and

received at our office) to be dropped off at the Tax

Collector

• Limited to one check a week to the Ft Myers and direct

neighbouring Counties

US MasterMind Training (US$15,000):

Six Days LIVE Training In Fort Myers

• July 22 to 27, 2010

• 5 nights accommodation

• Guided field trips

• 1-on-1 help buying tax liens and deeds

• Limited to 10 people (plus partners)

• 50% partner saving

2-Day Seminar Specials

For orders submitted during this two day training

• Basic Support reduced to US$29 per month

• VIP Support reduced to US$39 per month

• Bonus: First two months FREE on both plans!

• Mastermind Training reduced to US$9,950

• Save $5,050!

Part Eighteen: Wrap Up & Debrief

Session Objectives:


• Recap main teaching points for tax liens and tax deeds

Tax Liens

• Up to 18% return, no tenant hassles

• Secured by real estate

• Not ‘fool proof’ but quite easy

• Many options to suit you

• Great for passive investors

Tax Deeds

• Potential for large and quick gains

• More risk but more returns

• Suggest you buy and flick

• Due diligence essential!

• Great for active investors

Your Next Moves

• Wait for ITIN

• Review your training notes

• Start looking at auction sites

• Investigate US bank account options

Page I.

Appendix One: State By State Tax Liens & Deeds

Background Each State has its own way of handling tax liens and deeds. To assist you in understanding the rules, we have complied a snapshot overview that we hope is of assistance. Please note that the list is subject to change, so make sure you complete your own inquiries before taking action. Terms Here’s a quick glossary of the terms you’ll find in the State By State Matrix: ‘Type’ This is the type of lien / deed product available in that State. Options include:

LIEN: A tax lien is available for sale. If the lien has not been repaid by the end of the redemption period then the property deed becomes transferrable.

DEED: You have purchased the deed to the property and

the property is now yours outright. In this case, the lien is held by the County which then sells the deed in due course if the property owner has not repaid.

LIEN & DEED: In the first instance, the lien is sold at public auction.

Then, if the lien is not redeemed by the due date then the deed is sold at public auction with the proceeds going to repay the lien holder. If the lien has been sold to an investor but the deed did not sell at auction, then the deed is transferrable to the investor.

REDEEMABLE: DEED

The deed to the property is sold, but the original property owner has a finite time to redeem their deed. After that date there is no further recourse available.

Page II.

‘Redemption Periods’ This is the available time (in months) that the (original) property owner has to either redeem (pay off) the tax lien and / or tax deed. ‘Bid Type’

HIGHEST BIDDER:

The starting bid is the amount of taxes owed (or the opening bid if it is a deed auction). Investors then bid up the price with the highest price being the winner. The amount in excess of the opening bid goes to the county or city.

BID DOWN THE INTEREST RATE:

The opening bid on the tax lien is the maximum amount prescribed by the State, and then investors bid down that interest rate with the lowest bid being the winner (who then has to pay the amount of the tax debt outstanding and receives their bided interest rate as a return).

BULK SALES: The County / City sells off an entire list instead of

individual liens or deeds.

BID DOWN OWNERSHIP:

Instead of bidding for the deed, you are bidding on the percentage ownership you would like to take in the property.

ROTATIONAL: Starting at the front of the room, the county

representative gives everyone in the room the opportunity to acquire the lien / deed.

FIRST COME: Each person is allocated a bidder card / bidder

number and the first person to raise it once the property is announced is the winner.

RANDOM / LOTTERY:

Each person is allocated a bidder card / bidder number, and one is drawn at random. That person has the opportunity to buy if they so wish otherwise it passes to the next drawn person.

Page III.

STATE TYPE REDEMPTION

PERIODS (MONTHS)

INTEREST RATE CITIES/ COUNTIES BID TYPE

Alabama Lien 36 12% 42 Highest Bidder Arizona Lien 36 16% 15 Bid Down Interest Colorado Lien 36 9% above discount rate 64 Highest Bidder District of Columbia Lien 6 18% 1 Highest Bidder Illinois Lien 24 18% penalty 102 Bid Down Interest

Indiana Lien 12 10%/1-6mo,15%/6-12mo., then 25% 92 Highest Bidder

Iowa Lien 21 2% penalty per month 99 Bid Down Interest Kentucky Lien 12 12% 120 Highest Bidder Louisiana Lien 36 5% penalty + 1% mo. Then 12% 64 Bid Down Ownership Maryland Lien 6 6%-14% 23 Highest Bidder Michigan Lien 24 6%-14% depending on county 83 Highest Bidder Mississippi Lien 24 17%-18% 82 Highest Bidder Missouri Lien 12 10% 136 Highest Bidder Montana Lien 24 - 36 10% 2% penalty 56 First Come / Random Nebraska Lien 24 14% 93 Rotation Bid New Jersey Lien 21 18% max 567 Bid Down Interest Ohio Lien 12 18% 86 Highest Bidder Oklahoma Lien 12 8% (changes to 10% 11/01/09) 77 First Come / Random South Carolina Lien 12 3% per quarter then 1% per mo. 46 Highest Bidder South Dakota Lien 36 - 48 10% max 66 Bid Down Interest West Virginia Lien 12 12% 55 Highest Bidder Wyoming Lien 48 8% then 155 plus 3% 23 Highest Bidder

Page IV.


PERIODS (MONTHS)


Alaska Lien & Deed 12 15% 12 Highest Bidder Florida Lien & Deed 24 18% max 67 Bid Down Interest Massachusetts Lien & Deed 24 16% 14 Bulk Sales

Nevada Lien & Deed 24 10% 17 Random Drawing/

Highest Bidder New York Lien & Deed 24 3% penalty 62 Highest Bidder


PERIODS (MONTHS)


Arkansas Deed None None 75 Highest Bidder California Deed None None 58 Highest Bidder Idaho Deed None None 44 Highest Bidder Kansas Deed None None 105 Highest Bidder Maine Deed None None 492 Highest Bidder Minnesota Deed None None 87 Highest Bidder New Mexico Deed None None 32 Highest Bidder North Carolina Deed None None 109 Highest Bidder North Dakota Deed None None 53 Highest Bidder Pennsylvania Deed None None 64 Highest Bidder Utah Deed None None 29 Highest Bidder Virginia Deed None None 93 Highest Bidder Washington Deed None None 39 Highest Bidder Wisconsin Deed None None 72 Highest Bidder

Page V.


PERIODS (MONTHS)


Connecticut Redeemable Deed 12 18% 8 Highest Bidder

Delaware Redeemable Deed 12 15% 3 Highest Bidder

Georgia Redeemable Deed 12 20% penalty 159 Highest Bidder

Hawaii Redeemable Deed 12 12% 4 Highest Bidder

New Hampshire Redeemable Deed 24 18% 10 Highest Bidder

Oregon Redeemable Deed 24 5% penalty + 1% mo. Then 12% 39 Highest Bidder

Rhode Island Redeemable Deed 12 10% penalty per 6 mo. 5 Bid Down Interest

Tennessee Redeemable Deed 12 10% 95 Highest Bidder

Texas Redeemable Deed 12 25% penalty 256 Highest Bidder

Vermont Redeemable Deed 12 12% 14 Highest Bidder

Tax Lien Analysis Sheet County:_____________________

© TLD International LLC

Property ID Type Street Address City State ZIP

Last Three Years Tax Information Assessed Value

Tax Lien’s Face Value

Times Coverage Year $ Status Year $ Status Year $ Status

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