Any advice about Tax Overage income?

Question

I was introduced to the idea of finders fees for reuniting home owners of tax foreclosures with overage money by a webinar today. The program calls for you to pay over $1000 for a training program to learn how to do this. I am skeptical about programs you pay for, especially online. Has anyone ever done any "investments" like this? These guys get finders fees of 35-40% of the funds returned for the tax overages. They market the program as "A Robinhood Approach".

Any advice?

Nick Fullmer · Answer

@Ashley Rice I only made 100k in in 2018 from collecting overages.  Have already doubled that this year.  It is a tough business but you can be profitable.  I personally prefer mortgage overages over tax overages.  There lots of free info about the business on youtube.  Search "overage syndicate"

Craig Bolton · Answer

Tax overages alone is defiantly a waste of time due to state laws and a lot of red tape to deal with, however I use them in a very unique kind of way.  I have been buying tax deeds for about 4 years now and I generally purchase tax deeds, with nice homes in desirable areas, which tax deed overages go way up.  The owner that loses the home has no idea about the overages that they can collect and I use it as an incentive to help them receive the money, so they can move out and find a more affordable place to live.  If you are looking to get into it, this is an ok strategy to use, don't ever waste any money on an expensive webinar or real estate get rich quick package, they generally leave you more lost than when you started.  With overages you only need 3 contracts, pending on your state and you will need to get a power of attorney and a traveling notary.  I can email you the 3 contracts you need and how to get into the business, Always have a lawyer to review every thing to ensure that it is legal in your state and the legal limits that you can legally accept in your state.  Also you need to see if your state is a tax lien state or a tax deed state.  If your state is a tax lien state then you will have to go to another state. This isn't something you can do from home it takes a lot of leg work for very little return.  In some cases there are other liens, mortgages, and other people that will get first dibs to the overages first. The best way to get into real estate is to get a mentor that can guide you step by step and if you can find one local, that is just icing on the cake.  There are hundreds of ways to invest in real-estate and you never want to be a one trick pony.  I hope this helps and feel free to reach out to me and I will help you anyway I can.

Arnie Abramson · Answer

Good advice.  Texas, for example is a tax deed state.  However for overages in Texas the maximum charge allowable is 25%, not to exceed $1,000 and you must be an attorney.  Certainly not worth buying a course if you plan on Texas as a target state.

Wayne Brooks · Answer

An old, old game that's not nearly easy as they make it sound.....advise you look for other opportunities.

Francois Bessing · Answer

I'm interested in this. As a licensed Real Estate agent I have access to endless overage leads. I just don't have experience doing this and I don't have the paperwork. @Craig Bolton Would you mind sharing those contracts with me? Would be happy to trade leads.

Anna Brent · Answer

i meant $50,000

Anna Brent · Answer

Does anyone know for when the gov agency issues the overage check, all of it to you, and you have to send them a w-9, but then you turn around and cut a check to the homeowner, only keeping your portion/finder's fee.. how is that reported as income for tax reporting? (1099 misc., and  schedule C  for profit and loss) do you have to pay the whole self employment tax on the whole thing? or just the portion you kept? ex. $75,000 issued to you by the gov agency. and you kept $25,000. and re-distributed $55,000 homeowner.

Darvin Ezell · Answer

I have a possible deal that I am looking at in a county in Georgia, but on their website it says asset recovery agencies cant file a claim and only an attorney can. I downloaded Bob Diamonds overage course and got access to all the documents. If i have to involve an attorney, do i still have to have the claimant sign my contingency agreeement and make a separate agreement with the attorney?can you explain please.

Kendall Wideman · Answer

What’s tough about the business Nick?

Any advice about Tax Overage income?

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