Tax delinquent real estate, tax liens, and tax deeds are a great way to invest in real estate. Pre-foreclosure and foreclosure investing is significantly enhanced by Coach Mitch's system.

Coach Mitch’s REFLECTIONS

When I read this letter, I loved it, and felt that it would gladden the heart of anyone who read it.

The ‘haves’ are running the hen house (US) – into the ground. This allows for many opportunities. Those of you who want or need to put your financial house in order would be well advised to find a source of income outside of your vocation.

Tax delinquent real estate investing is the best way to put yourself in front of folks who are in a bad financial situation. Their bad situation is not your fault, but you can help them, and along the way, you can help yourself, and your family.

Investigate Coach Mitch’s Ridiculously Simple System… It really does work!

Mitchell Goldstein – Coach Mitch

518-439-6100 until midnight EST

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Best Letter Ever Written to A Bank Manager

by R. MAK. on February 8, 2009

This is an actual letter written to bank manager by an old lady who got her check bounced by the bank due to lack of funds. It was first published in the New York Times in 2006.

Dear Sir,

I am writing to thank you for bouncing my check with which I endeavored to pay my plumber last month.

By my calculations, three nanoseconds must have elapsed between his presenting the check and the arrival in my account of the funds needed to honor it.

I refer, of course, to the automatic monthly deposit of my entire pension, an arrangement which, I admit, has been in place for only eight years. You are to be commended for seizing that brief window of opportunity, and also for debiting my account $30 by way of penalty for the inconvenience caused to your bank. My thankfulness springs from the manner in which this incident has caused me to rethink my errant financial ways.

I noticed that whereas I personally answer your telephone calls and letters, — when I try to contact you, I am confronted by the impersonal, overcharging, pre-recorded, faceless entity which your bank has become.

From now on, I, like you, choose only to deal with a flesh-and-blood person. My mortgage and loan repayments will therefore and hereafter no longer be automatic, but will arrive at your bank, by check, addressed personally and confidentially to an employee at your bank whom you must nominate.

Be aware that it is an offense under the Postal Act for any other person to open such an envelope. Please find attached an Application Contact which I require your chosen employee to complete. I am sorry it runs to eight pages, but in order that I know as much about him or her as your bank knows about me, there is no alternative. Please note that all copies of his or her medical history must be countersigned by a Notary Public, and the mandatory details of his/her financial situation (income, debts, assets and liabilities) must be accompanied by documented proof. In due course, at MY convenience, I will issue your employee with a PIN number which he/she must quote in dealings with me.

I regret that it cannot be shorter than 28 digits but, again, I have modeled it on the number of button presses required of me to access my account balance on your phone bank service. As they say, imitation is the sincerest form of flattery.

Let me level the playing field even further.

When you call me, press buttons as follows:

IMMEDIATELY AFTER DIALING, PRESS THE STAR (*) BUTTON FOR ENGLISH

#1. To make an appointment to see me.

#2. To query a missing payment.

#3. To transfer the call to my living room in case I am there.

#4. To transfer the call to my bedroom in case I am sleeping.

#5. To transfer the call to my toilet in case I am attending to nature.

#6. To transfer the call to my mobile phone if I am not at home.

#7. To leave a message on my computer, a password to access my computer is required. Password will be communicated to you at a later date to that Authorized Contact mentioned earlier.

#8. To return to the main menu and to listen to options 1 through 7.

#9. To make a general complaint or inquiry. The contact will then be put on hold, pending the attention of my automated answering service.

#10. This is a second reminder to press* for English. While this may, on occasion, involve a lengthy wait, uplifting music will play for the duration of the call.

Regrettably, but again following your example, I must also levy an establishment fee to cover the setting up of this new arrangement. May I wish you a happy, if ever so slightly less prosperous New Year?

Your Humble Client

Tax delinquent real estate, tax liens, and tax deeds are a great way to invest in real estate. Pre-foreclosure and foreclosure investing is significantly enhanced by Coach Mitch's system.

Coach Mitch’s REFLECTIONS

Homeowner’s insurance is a necessary part of the real estate investor’s armor. You can normally get your investment property included into your homeowners’ insurance policy, along with your car. The more you have to insure, the more valuable a client you become and you will qualify for any quantity discounts.

Do lower housing prices mean cheaper insurance?

No. While tumbling house prices may have you wondering whether homeowners’ insurance will fall also.

The answer is not easily seen. While US median house prices have fallen about 7%, year against year, do not expect premiums to be cut by a similar amount.

Your homeowners’ policy covers your home – but also much more. The typical homeowners’ policy also covers contents, and the value of contents is likely to have risen, as well as third party liability.

Industry experts have determined that as many as two thirds of American homes could be undervalued, when seeking monies for rebuilding due to a covered incident.

Most important

Your coverage must be evaluated by understanding that the buildings element of your policy should be based on the cost of reconstructing it, and not on its current value. To base your insurance on the current market value is to make a serious error.

Construction costs up or the same

While times are hard for builders, the evidence suggests that construction pricing has not fallen like housing prices. Prices of materials have moderated, and labor is not quite as expensive, but only slightly.

The wars in Iraq and Afghanistan are taking up any slack in the US market – keeping up pressure on prices.

Check your policy

It makes sense to check that your homeowners’ policy accurately reflects the cost of rebuilding any property that you own, including any investment property.

How to calculate your market value

Talk to your insurance broker. They have their pulse on the local market.

Insurers keep track of rebuilding cost and automatically adjust policies to reflect changes in pricing.

There are online calculators that can be used to assess current costs.

Ask a builder to do a walk through and estimate the reconstruction costs.

Have an appraiser do a full inspection.

Unfortunately, lower real estate values will not lower your homeowner’ premium. However, there are other ways to reduce insurance costs. You might agree to pay a higher deductible, or make sure to use the same insurer for all your insurance needs.

Beware

Stories about insurance debacles are legend.

I will never forget a call from a coaching student informing me that a young child had fallen into a well on their newly acquired investment property. I had worked with this couple to get this property, their first, and I still remember his words, “Yes, I know that you told me to get property insurance…”

I will also never forget the nauseous feeling in the pit of my stomach upon receiving a letter from a tenant that read, “We had a girl scout meeting. Just letting you know that a young girl put her arm through the glass in your front door. She got 67 stitches. Her parents are consulting a lawyer and will be in touch with you soon.” I quickly recovered when remembering that I had liability coverage.

A vivid memory is the time that I was at an attorney’s office, fighting a claim that I, (my workers), had moved some portable front steps at a home that I had just bought and sold. It seems that the new owner became drunk and fell down the steps. Luckily, I could show that the new owner had moved the steps after my workers did, so I was not liable, but my liability policy would have protected me.

And, etched in my memory is the night that I had a washer hose rupture on the second floor of my home and the water went down two floors and did considerable damage. My insurance agent was of no help. Don’t forget, he is the agent of the company. I had to get a public adjuster. He got me at least triple what I would have known to get. He was well worth his fee.

Another costly incident was averted because I had made sure to be on good terms with a neighbor of an investment property. See the post: http://www.coachmitch.com/2007/05/05/good-neighbors-make-for-cheap-insurance/

Take care,

Mitchell Goldstein - Coach Mitch
518-439-6100 until midnight EST

Tax delinquent real estate, tax liens, and tax deeds are a great way to invest in real estate. Pre-foreclosure and foreclosure investing is significantly enhanced by Coach Mitch's system.

Coach Mitch’s REFLECTIONS

A Question

In post #142, I answered a student’s question. This is a follow-up.

Mitch you are the best,  thanks a million.   would you by any chance have some recordings of you talking/negotiating with sellers so we can hear it live how this works etc?l

The Answer

While I appreciate the request, please understand that people expect privacy, especially in transactions where they are disadvantaged.  If you were the seller, would you like such a conversation to be made public?

The goal is to be the person that the seller wants you to be, so that he can feel good when giving you his property at a low price.  This takes an understanding of that individual.  It is absolutely not a cookie cutter situation.  Each person is unique and they must be treated as such.  We can speak about sales techniques in generalities, but, to be effective, you must develop the skills to know what to say, how to say it, what the body language should say, and most important, how to evoke the feelings that you want felt.

Please read my blogs.  I continually say that folks must be treated with respect, with empathy, with genuineness.  Try to help someone and be creative about it so that you can earn a profit.  That is what creates a win-win situation.

My coaching program is the vehicle that will get you into master negotiation mode, including how to put together a winning offer.  Anyone can find a motivated seller.  That is easy.  What do you do next is the real question.  Why should that seller sell to you at that low price? What makes you different from the last person who tried to buy?  Why didn’t he sell to that person? BTW, that’s a “smart question.”  The answer will give good data.

Consider calling.  It appears you have real interest and it seems that you understand concepts.  What a good start to work from.

Mitchell Goldstein

Coach Mitch

518-439-6100 until midnight EST

Tax delinquent real estate, tax liens, and tax deeds are a great way to invest in real estate. Pre-foreclosure and foreclosure investing is significantly enhanced by Coach Mitch's system.

Wyandotte County seeks new/ tool to collect taxes/

The Kansas City Star 2/15/10

With about 10 percent of Wyandotte County properties in arrears, the government is lacking much-needed funds in a budget-cutting economy. But leaders are proposing a new tax-collection plan.

This month, county officials asked the state to permit a plan allowing private vendors to help collect the taxes. Vendors would front the money to the county in exchange for payment once the debt — plus interest — is subsequently paid.

“Given these particularly hard times, we should do everything we can to collect money that we are already legitimately owed before we raise taxes on everybody else or cut services,” Unified Government spokesman Mike Taylor said. “We just think that’s a good policy.” …especially as delinquent taxes are expected to increase at the same time local governments brace for more state cuts.

…saying the issue is a budgeting tool and also one of fairness for most taxpayers who do pay their taxes promptly, but it could face skepticism from lawmakers who might envision strong-arm tactics used by some debt collectors.

… the government is selling delinquent tax lien receivables, not the delinquent tax lien. The actual lien never changes hands, so the private vendor has no authority to foreclose. The government would still be responsible for collecting all debt, even the portion fronted by private companies.

Yet the concept gave Unified Government Commissioner Nathan Barnes strong misgivings. He said the plan would “bring the dogs out” and have private companies knocking on residents’ doors using scare tactics.

Taylor hopes the bill will pass because lawmakers have made it clear that they will likely be taking away more tax money that was earmarked for local governments.

“We’re trying to take care of ourselves,” Taylor said. “At least give us a tool that helps plug that hole or bring in some more money.”

Read the entire story: http://www.kansascity.com/2010/02/15/1750655/wyandotte-county-seeks-new-tool.html

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Coach Mitch’s REFLECTIONS

Here’s a novel concept – REDUSE SPENDING!

It is amazing that, when times are tough, legislators still see no alternative to raising taxes. They feel bad, they say, but, “Given these particularly hard times, we should do everything we can to collect money that we are already legitimately owed before we raise taxes on everybody else or cut services.”

This politician is adept at speaking out of both sides of his mouth – at the same time. First he says these are “particularly hard times.” One would think that this implies he understands and recognizes that there should be an effort to make things easier for taxpayers.

Apparently not

He apparently does not think logically because next we hear, we should “collect money …owed…before we raise taxes…or cut services.”

This legislator says, times are very hard, but let’s enforce collections or raise taxes on those very folks who can’t pay their taxes. Somehow, making things harder for US is a good answer for this jerk. Now you know why I label this kind of politician as part of the “miscreant class.”

Contracts / Obligations

I am sure that in his defense it will be stated that the county has legal obligations which each property owning citizen must pay for. It does not occur that it is these very obligations that are bankrupting the community. Why is there no clause in the contracts stating that, in times of financial crises, the payments shall be reduced or suspended, without penalty or with some adjustment?

Just Punishment

In colonial times, citizens would tar and feather someone to show their displeasure. Discipline in school was maintained by rapping the knuckles of a school child. I still remember in 1^st grade, the rabbi pinching my cheek and turning it 90°. It hurt! I behaved.

In colonial times, corporate punishment was a regular event. The Army and Navy regularly gave whippings as punishment.

EXAMPLE: During the Lewis and Clark expedition, two guards were given 100 lashes each. They had fallen asleep during guard duty, while in Indian country. The entire company voted on the punishment. During the expedition, it was the only time that type of punishment was meted out.

The whip was considered just punishment. Were the folks who started our country cruel? Or, did they understand human nature. The Mafia understands that the threat of violence gets cooperation.

As part of their legal system, Singapore and Malaysia regularly cane law breakers. Do you remember Michael Fay, that young fellow who was caned with a bamboo stick for vandalism? There was media frenzy here and the penalty was reduced from 6 to 4 strokes. Why not use that same principle within our society? http://en.wikipedia.org/wiki/Caning_in_Singapore

Cruel and Unusual Punishment

Is it Cruel and Unusual to paddle an unruly school child?

As ‘civilized’ people, we don’t inflict physical punishment anymore, we just allow the victims to suffer egregious financial harm. Further, the perpetrator is thought to be acting out on his strained childhood, and therefore, he must be forgiven his transgressions. To our credit, we do feel bad for the victim. But feelings do not pay the bills. This results in very little justice in our justice system.

High taxes leads to civil unrest

I stipulate that over-taxation is today’s ‘cruel and unusual’ punishment.

The Declaration of Independence declares, “He has erected a multitude of New Offices, and sent hither swarms of Officers to harass our people and eat out their substance.” http://www.ushistory.org/declaration/document/

Is it just for a man to lose his home because he cannot pay his taxes? Is this not Cruel and Unjust?

Rather, curtail spending, reduce bureaucracy, repeal laws, seek efficiencies, institute standards, and metrics, insist on competence, jail lawmakers, and corporate types who game the system, etc. Sure punishment is the road to a just society with less crime.

But, until we get to societal nirvana –

Coach Mitch’s Ridiculously Simple System shows how you can help yourself and also help those tax delinquents who want to sell their property, and move on with their lives.

Blue sky’s

Mitchell Goldstein – Coach Mitch

518-439-6100 until midnight EST

9 Principles, 12 Values

The 9 Principles

1. America Is Good.

2. I believe in God and He is the Center of my Life.

God “The propitious smiles of Heaven can never be expected on a nation that disregards the eternal rules of order and right which Heaven itself has ordained.” from George Washington’s first Inaugural address.

3. I must always try to be a more honest person than I was yesterday.

Honesty “I hope that I shall always possess firmness and virtue enough to maintain what I consider to be the most enviable of all titles, the character of an honest man.” George Washington

4. The family is sacred. My spouse and I are the ultimate authority, not the government.

Marriage/Family “It is in the love of one’s family only that heartfelt happiness is known. By a law of our nature, we cannot be happy without the endearing connections of a family.” Thomas Jefferson

5. If you break the law you pay the penalty. Justice is blind and no one is above it.

Justice “I deem one of the essential principles of our government… equal and exact justice to all men of whatever state or persuasion, religious or political.” Thomas Jefferson

6. I have a right to life, liberty and pursuit of happiness, but there is no guarantee of equal results.

Life, Liberty, & The Pursuit of Happiness “Everyone has a natural right to choose that vocation in life which he thinks most likely to give him comfortable subsistence.” Thomas Jefferson

7. I work hard for what I have and I will share it with who I want to. Government cannot force me to be charitable.

Charity “It is not everyone who asketh that deserveth charity; all however, are worth of the inquiry or the deserving may suffer.” George Washington

8. It is not un-American for me to disagree with authority or to share my personal opinion.

On your right to disagree “In a free and republican government, you cannot restrain the voice of the multitude; every man will speak as he thinks, or more properly without thinking.” George Washington

9. The government works for me. I do not answer to them, they answer to me.

Who works for whom? “I consider the people who constitute a society or a nation as the source of all authority in that nation.” Thomas Jefferson

The 12 Values

* Honesty * Reverence * Hope * Thrift * Humility * Charity * Sincerity * Moderation * Hard Work * Courage * Personal Responsibility * Gratitude

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Coach Mitch’s REFLECTIONS

Glen Beck’s idea/movement

If you have been reading this blog, you know that I am somewhat political. A representative of the 912 Movement, which is affiliated with the Tea Party movement, addressed the local Republican Party.

Amongst the items spoken about were the ideas that the 912 Movement tries to expound. If you have an interest, you can see how this movement is helping to return US to a thought process that is more originalist in constitutional thought, where the defense of life, liberty, and property is the righteous purpose of our national government; not imposing the centralized egalitarian ideology which has ensconced our government in the last 80 years.

The Principles and Values

The Principles remind me of the Boy Scout oath. It is worth reading. http://www.usscouts.org/advance/boyscout/bsoath.asp Each time I recited it I felt wholesome, clean, and worthy. The two oaths are certainly similar in theme.

I see nothing wrong with any of the Principles or Values. If you do, then think through your objection. For example:  Principle #2.  "I believe in G-d."  Even if you are not a believer, I am sure that you can understand the importance of the idea that something must be higher than man.  If man is the highest value, then man is omniscient, and there is no justification for undoing any of the wrong's that man has legally passed into law.  Therefore, a G-dhead must exist, in concept, so that man can call upon it when objecting to injustice.

If you believe that a politician is not adhering to the values listed below, then let them know how you think. Your voice does count.

I did not edit anything.

G-d Bless,

Mitchell Goldstein – Coach Mitch

518-439-6100 until midnight EST

Tax delinquent real estate, tax liens, and tax deeds are a great way to invest in real estate. Pre-foreclosure and foreclosure investing is significantly enhanced by Coach Mitch's system.

Coach Mitch’s REFLECTIONS

Banks Are Motivated Sellers???

Banks are not usually thought of as “motivated sellers.” However, when today’s banks have such large portfolios of foreclosed properties, it is understandable that they are “motivated” to get these properties off their books.

A while back, I got a property from a bulk foreclosure sale. You can see it. It is the third picture down in the right outside sidebar; the burnout.

I have dealt with bank foreclosure officers, usually with little success. Now however, there has never been a better time to deal with banks. If you have the capital, or can get it, then seeking to make a bulk purchase can be a great ticket to a big score.

BTW, almost all foreclosure properties are tax delinquent.

Bulk REO investing take LOT’s of money.

The least expensive portfolio l have ever seen needed $100K in cash. It was for a small piece of the entire portfolio; but the $100K could get you 30 houses – in Detroit, almost certainly in the ghetto.

FYI

This is an article by a known guru. It gives basic info about Bulk REO’s. I thought it worthwhile to pass on without editing. I am not affiliated with the guru.

Be careful,

Mitchell Goldstein - Coach Mitch

518-439-6100 before midnight EST

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Many people are checking out bulk REO investments as a way of building some financial security in these troubling times. For the average reader, however, you may not even be aware of what bulk REO investments means, especially because REO is an acronym that has erupted into contemporary popular usage only recently. If you are one of those people who want a way to navigate the confusing terminologies behind bulk REO investing, here are the basic terminologies that you need to be acquainted with.

Bulk REOs

Bulk REOs is an acronym that stands for 'real estate owned' and is a term that is often used in the banking as well as the lending world. The process of bulk REOs is summed up in the event where a home that is placed on mortgage is placed on a foreclosure because of the homeowner's inability to pay the mortgage or other dues that have been made with the real estate used as the collateral. Bulk has been often added to the REO acronym because investment in this field is most profitable when buying REOs in bulk, since these forms of real estate are much cheaper than others and are thus best when bought in bulk, the way wholesale buying is much more efficient than choosing to purchase goods from retailers. Some institutions will not allow individual REO buying.

POF

The acronym stands for 'proof of funds' and is one of the basic requirements before you as an investor can begin your transactions to have a bulk REO package made. If you have ever bought a house, and you probably have since you are now looking at real estate as an investment option, you have probably realized that to purchase a single house alone requires the participation and help of many entities. Among those that may have been involved in the purchase of your home is the homeowner who intends to sell, you who intend to buy, a bank that may provide some of the funds that you need in order to purchase the house, a lawyer to settle the paperwork, and even an objective home inspector to act as a third party. The same goes with bulk REO investments. Because it entails much work, most banks will need a POF before proceeding.

Vetting

Otherwise known as the critical examination or assessment part of the bulk REO buying process, it is necessary in order for the bank to assess not only the POF of the person who intends to buy the real estate, but also the actual willingness of the person to proceed with the transaction. After all, not everyone who has sufficient POF necessarily has the intent, and may simply be surveying his investment potentials.

LOI

Also known as the 'letter of intent,' this is the letter which the bank will entertain once you have undergone the vetting of the POF. The LOI will indicate what your exact bulk REO investment request entails, such as what type of property you are looking for, the price range that you desire, as well as the location that you will entertain.

NCND

The acronym stands for 'non-circumvent, non-disclosure agreement' and is a document signed by all the parties involved to secure the transaction. Here, the basic premise is that all parties involved in the transaction will not interfere with the proceedings of the REO investment and that information regarded as confidential will not be disclosed.

There are over 50 terms you need to know to be successful in this business when you deal with a bank. I provide you with everything you need to get in the door and talk like a professional. I included scripts , and responses.

Check out http://www.bulkreopropertyinvesting.com

Sincerely

Duncan Wierman

Tax delinquent real estate, tax liens, and tax deeds are a great way to invest in real estate. Pre-foreclosure and foreclosure investing is significantly enhanced by Coach Mitch's system.

Coach Mitch’s REFLECTIONS

A Question

Hi Mitch,

Can i please ask you, if i offer to buy there property for $200 and they ask for more money, you say YES ($1 option) don't they feel that you were first trying to trick them into selling a $100k property for $200  didnt you like lose your true trust in their eyes?

My Answer

Intelligence in all things. That includes anticipating what the other side will feel, think, say, and do.

I don’t really anticipate offering $200 for a free and clear $100K property. That is either gutsy or silly. My intention is to find out what the seller is trying to accomplish, and then I try to give it to him – in a way that I can attain the amount that I need to profit.

It is gutsy (a good thing) to make the $200 offer if you base the offer on good information. “I don’t care what I get, I just don’t want the county to get the property. I don’t care if I give the property away. Those no good %$!*&*% at the county made my life miserable and I don’t want them to get anything.” Test this statement. “But Mr. Owner, you have a valuable property here.” “I don’t care, they have made me so mad…” Don’t argue, whip out the quit claim deed and hope your pen doesn’t run out of ink. (Murphy lurks everywhere) BTW, this does happen – more than you might suspect.

OR

The property is not worth $100K. It is worth $10 to $30K and the tax sale is around the corner. This is the typical situation. The seller has tried what he knows to do, and it did not work. You are the only person showing some interest and he is disgusted with the situation; and he is disgusted with himself for not having successfully resolved the issue. The seller has divorced himself from the property. In his mind, he no longer owns it. When this mindset occurs, then the seller is open to a ridiculously low offer. BTW, most sellers who have property scheduled for tax sale have this mindset.

It is silly to offer $200 if the offer was made without information about what the seller needed, or what the seller was trying to accomplish. You don’t just say, “I’ll give you $200 for this $100K property.” That is a slap in the face. You must, must, must know the circumstances surrounding the tax delinquent’s situation. IF HE IS DESPARATE, then you can offer a ridiculously low number. Your example did not show any desperation in the situation.

Anything lower than a full price offer requires a good explanation as to why you offered that amount, if you have any hope of it being accepted. “The tax sale is in a few hours and I have not had any time to investigate anything about the property. I’m very sorry. It may be OK, but, for example, the property could have significant title issues; or something about the neighborhood might not be desirable. The company policy is to do a thorough investigation before buying an asset and we can’t do that in this case. I’m sure you understand. In order to protect ourselves, the only thing we can do is to offer you a small, token amount, like $200.” This is almost verbatim, what I said to buy a $40K house for $100, just hours prior to the tax auction. I later sold the home for $87K.

The essence of using the $1 Option is that: “I don’t want to pay you the amount that you ask, but, as long as I can make a few bucks, I will be happy to try and find someone else who will.”

Is this more clear?

Mitchell Goldstein

Coach Mitch

518-439-6100 until midnight EST

Tax delinquent real estate, tax liens, and tax deeds are a great way to invest in real estate. Pre-foreclosure and foreclosure investing is significantly enhanced by Coach Mitch's system.

Coach Mitch’s REFLECTIONS

I was cleaning out my Inbox when I saw an email from a client that I had missed. It bothers me that I missed a communication from a client. It galls me when a person or a company does not respond to me immediately. Therefore, I try hard to respond quickly. Good manners go a long way in showing the kind of person you are.

My answer

Barbara,

I am aghast!  I just saw your email this moment.  I’m sorry it has taken so long for a response.  In the future, if I have not answered by the following day, then email me again, or call.  A one month delay in answering is not acceptable.  I wouldn’t accept it, you shouldn’t either.

_____________

You wanted to know what it would take to do this program.

Barbara, your success will be directly tied to how well you and Richard are able to associate with the folks in trouble.  That means you will have to learn how to manipulate people’s emotions.  This often comes down to being genuine and empathetic.  Example:  The ‘formula’ or ‘script’ I used to answer your email was:  acknowledge, apologize, resolve, and emphasize.  This is empathy with a purpose.  This is a version of my favorite sales technique, Feel, Felt, Found.  Google it.

Please do not view my answer with cynicism.  I am trying to give a real world example of how to deal with people.

The first thing is to acknowledge their situation, then show some level of contrition or sadness or astonishment that the situation exists; then provide some good information, and then follow-up.  It will seem Machiavellian to some, but we manipulate all the time.  To manipulate for the benefit of creating a win-win situation is good manipulation.

The sellers are in a bad situation.  No one has helped them out of their bad situation thus far.  Are they better off if you leave them alone, to continue in their bad situation; or are they better off by moving on with their lives, even if their emotions have been manipulated a bit by you.  They win, and you win; win-win.

Yes, this business can be done.  It is being done every day, by others.  Your success will be in direct proportion to your sales ability.  Please do not think that because a person is in trouble, that they will accept any offer.  That is not the case, not at all.  Folks in trouble cut their noses off to spite their faces – all the time.  That is how they keep their self esteem.

In order for these folks to sell to you, with the terms you want, you will have to be seen as a friend, as being trustworthy, someone who will go the extra mile for them (the sellers.)  The price or the terms you offer have nothing to do with how the sellers will view you.  “Your policy is to offer a certain amount.  You’re sorry, but that is all that you can do.  You would love to give them everything that they want, but you can’t.  If you made an imprudent purchase, then you would be in a bad situation yourself.  You want to help, but you must be prudent.”  Doesn’t this sound like you are good business people and trying to be considerate at the same time?

The other guru’s say there are motivated sellers in the marketplace.  They intimate all you need do is to show up, and somehow, miraculously, the seller will give you the property for a song.  Not so.

The reality is that only 20% of salesmen make a good living. The other 80% have the same prospects; however, they do not elicit the same response from the prospect as the most successful 20%.

The reason for the coaching is to help you become the salesperson that you need to become.  Please contact me with any sales situation where you would like some help.

Be genuine,

Mitchell Goldstein – Coach Mitch

518-439-6100 until midnight EST

Tax delinquent real estate, tax liens, and tax deeds are a great way to invest in real estate. Pre-foreclosure and foreclosure investing is significantly enhanced by Coach Mitch's system.

Coach Mitch’s REFLECTIONS

The other day I sent a follow-up email to several persons who had contacted me. Here is a response.

Hi Mitch:

It is great hearing from you. I would love to chat some more.  I was not expecting to hear from you out of the blue like this.

I will try to be short and concise. I tend to be verbose I realize.  In regards to real estate, my mind does tend to change quite a bit.  I think I have felt at times, and at times come to the conclusion that real estate is not for me because of my aptitude and psychological makeup.

My answer -

It is good to hear from you again, though I am sorry that you are feeling less than sure of your ability re real estate investing.

You did not say that REI was bad, but rather that you might not be good at REI. That is a significant difference.

Might I suggest a confidence building measure? Find a mentor. A mentor in real estate investing would be best, but any mentor will help you overcome fear and pursue your interests.

Join a REIA, Real Estate Investor’s Association. Travel if you must, but find a group. This is a wonderful way to find a REI mentor. I did.

A “mastermind” group is the next best way to get serious help, encouragement, and insight. The REIA might have them set up. The Chambers of Commerce often have “mastermind” groups. Set up a one person business, pay the fees, and join in the fun. You could also go onto Craig’s List and ask if anyone wants to join a “mastermind” group.

If you have any REI training sets, you could just delve into it and do what the guru says. Just do it, even if you fail. In failing, you will have learned that you had the strength of character to try, and that you survived; therefore, you can try again.

We are all insecure. Some of us are brave enough to face the fears, and sometimes we win big. I trained a very insecure individual. We practiced what to say, what the expected responses would be, and we practiced our answers to the response, etc. We practiced entire conversations. In this manner, the student felt prepared, and therefore confident that he could approach a seller and know what to do. No matter what the seller said, the student knew what to do to counter. In his very first attempt, the student, with only $1, optioned a restaurant worth $1.6MM. Amazing!

Find help now, or feel sorry that you didn’t.

Regret is a terrible thing.

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Another conversation

Recently, I had a similar conversation with another would be investor. He is single, 38, insecure and lonely. The conversation turned to woman. He said that all the good woman were taken and that he can’t find one, especially a pretty woman. Usually the woman say that all the good men are taken.

Having Nerve

I had never thought about it before but, in my single days, I had always only gone out with very attractive woman. I married a beautiful woman. I’m not kidding. She stopped traffic. We’re together for 35 years.

Now, if you look at my picture, I’m no Brad Pitt. So why did I only go out with very attractive woman? The answer - because that is who I asked out. If you only ask out beautiful woman, then, some of them will say, “Yes.”

I remember one time I asked out the prettiest girl in school. She turned me down. While I was asking her out, the second prettiest girl in school walked up and listened to our conversation. Embarrassing. Apparently it got around school, because later that day, a friend teased me about it. I said, “Yes, I do like her. At least I had the guts to do something about it.” That shut him up.

I relayed these thoughts to the fellow and he understood that “having the guts to go for it” was a necessary part of life, achieving success and having some contentment. But, it is smart to go where your interest is, because that is where you will find it.

Narrow the field

I have said it before, dealing in tax delinquent property is a way of narrowing the field. You are only speaking to folks who are in trouble. That is why they are not paying their taxes. All you need do is talk to them, and see if you can help the situation.

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Coach Mitch’s famous $1 Option is the perfect vehicle to take control of property. An option gives you all the benefits of real estate without any of the responsibilities. My option has several unique traits that make it very powerful. The best part is that clauses are worded so that the seller sees the words but doesn’t realize its consequence. Even lawyers have no objections.

G-d bless,

Mitchell Goldstein - Coach Mitch

518-439-6100 until midnight EST

Tax delinquent real estate, tax liens, and tax deeds are a great way to invest in real estate. Pre-foreclosure and foreclosure investing is significantly enhanced by Coach Mitch's system.

Coach Mitch’s REFLECTIONS

Michael Rady worked at the docks for 15 years to pay off the mortgage on his Cleveland home.

But when Mr. Rady was injured and could no longer do physical labor, he couldn’t find a job and had to live off savings and credit cards. Soon, he owed Cuyahoga County close to $8,000 in property taxes, and the county treasurer sent him a foreclosure notice: His house would go to auction in February.

Nationwide, many counties and cities faced with declining revenues are turning to tax foreclosures — when a homeowner is evicted due to unpaid taxes rather than an unpaid mortgage. For the most part, local officials see tax foreclosures as a necessary evil. But in some cases, tax foreclosures appear to be spiraling out of control, threatening the health of cities. Cuyahoga County, for instance, has recently reversed course and imposed a moratorium on tax foreclosures for the first time since the Depression.

In pursuing tax foreclosures, "We’re lowering the prices [of homes] and contributing to wealth destruction," says Treasurer Jim Rokakis.

It can be a wrenching decision. One Maine town is allowing delinquents to stay in their property penalty–free to avoid throwing people out of their homes. But, in many cases, local politics rules the day. Tax foreclosures are most common in municipalities where treasurers are appointed.

"If you’re elected, are you going to foreclose on people who voted for you?" says Kathleen O’Donnell, a tax–title attorney in Boston.

Historically, tax foreclosures rise when mortgage foreclosures do, says Nicolas Retsinas, director of Harvard University’s Joint Center for Housing Studies. Typically, delinquent residents pay off back taxes by selling their house, but that can be hard in today’s housing market.

No one currently tracks tax foreclosures nationwide, though a new nonprofit called the Center for Land Reform in Flint, Mich., was started last year for that purpose.

Anecdotal evidence from across the United States suggests that tax foreclosures are rising.
Tax foreclosures are up in three–quarters of Washington State’s counties, says Bob Lothspeich, president of the Washington State Association of County Treasurers.

In Michigan’s Ingham County, where Lansing is located, the number of people who face tax foreclosure almost doubled, from 822 in 2008 to a record 1,506 in 2009, says Treasurer Eric Schertzing.

Shirley, Mass., reinstated tax foreclosures after cuts in state aid forced it to lay off more than half its firefighters and shift town employees to a four–day workweek. The last time Shirley made tax foreclosures was 50 years ago. Now, 130 taxpayers in a town of 7,904 owe more than $1.3 million in back taxes and interest, some going back to the 1950s, says Treasurer Kevin Johnston.

"We’re going broke," adds Shirley selectman Enrico Cappucci, who supports tax foreclosures.

In most jurisdictions, people have several years between defaulting on their taxes and facing eviction. In Washington State, taxpayers have to be delinquent for three years. In Massachusetts and Michigan, it is approximately two years. The rules vary by state, county, or city.

Millinocket, in central Maine, does not evict anyone. The number of people who lost titles to their homes because they did not pay their taxes doubled or tripled in recent years, says Town Manager Gene Conlogue. But the town did not throw anyone out.

"We have a policy that requires them to pay rent, but we generally waive that," Mr. Conlogue says. "We’re not trying to add to people’s problems."

Neither is Mr. Schertzing of Michigan’s Ingham County. But tax foreclosures are necessary, he says. The best he can do is making it gentler than a mortgage foreclosure. "I go to some of these homes, I knock on the doors, and I talk to the families," he says.

In Ohio’s Cuyahoga County, sheer numbers preclude that approach. The county prosecutor filed 2,000 tax-foreclosure cases in 2009 — a 400 percent increase from five years ago. Tax foreclosures in the county accounted for 13 percent of all foreclosures.

This year, the prosecutor expects to file some 2,400 cases.

But delinquent Cuyahoga County home–owner Rady and 160 other residents set to have their houses auctioned in February have gotten a temporary reprieve. Treasurer Mr. Rokakis instituted a six–month moratorium on tax foreclosures a few days before Christmas. "Adding more foreclosures to the thousands of properties that have already been foreclosed is not helping," Rokakis says.

The decision made Rady, who lives on Social Security, feel "somewhat relieved." He has to raise $8,677 in six months. "I don’t know how much I’ll be able to come up with," he says. "I’m going to try."

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What does this mean for you? Well it is simple. Right now in 2010, you may want to look at towards investing in Tax Foreclosures. You can contact your local courthouse and get a list delinquent properties that have not paid their property taxes on time as well as the date for the auction that these properties will go up for sale. You can bid against the others seeking a good deal at the auction OR you can use Coach Mitch’s “Ridiculously Simple System…” to contact these tax delinquents and do a deal with them well prior to the tax auction.

Best of luck

Coach Mitch

Mitchell Goldstein

518-439-6100 until midnight EST