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Fair Market Value - A key to investing in real estate and structuring a good purchase is your ability to know the fair market value (FMV). You must understand the asking price and the list price are not the fair market value; they are what the sellers want. These figures could have been pulled from the air or the Realtor may have suggested the price. Below are four quick ways to find FMV.

1. Comparables - Contact a Realtor and ask for sold comparables in a specific area or community. They can often provide you with several properties that have sold. This will give you a general idea of the FMV in the local area.
2. Appraise and Analyze - An estimate of value of what a property would sell for under normal market conditions; completed by a professional appraiser. Analyze what a seller wants and what he or she will get.
3. Tax Assessed Value – Yearly the local county government tracks the value of a property. Most are below market value. If you do an average in your community, you will find they are consistently at a rate below market value, for example 85 - 90% of market value. A good rule of thumb is to be able to purchase a home 15% below assessed value. This does not always hold true but can be a good gauge.
4. Courthouse Records - Visiting the tax assessor’s office can help you locate the value of homes in a specific area or community. Simply research houses that have recently sold in that area. (Internet access)

The comparable method is the most basic and commonly used method of value estimation for single-family homes. Other Evaluations In addition to the standard evaluation techniques of comparables, appraisals, tax assessments, and courthouse records to determine fair market value, properties can be evaluated in a number of other ways. Most evaluate the return on investment or are used to code an ideal property. There is a number of quick and easy coding systems that can help you evaluate properties:

1. Quick Appraisal The quick appraisal system codes mid range properties. This is a simple A B C system. The ‘A’ property is the middle range property in your community, the ideal property for resale and marketing.
2. Conversion Ratio The conversion ratio is a simple system of looking at the cash invested into the property and the equity of the property. Anytime you can find an investment that returns three times the equity of the property, generally the property is a good choice. Even if the market moves down, the equity is substantial.
3. Profit Margin The profit margin of a property is the fair market value minus the purchase price and is quoted as a percentage. A 40% - 50% profit margin is a fair deal with room for error. Even if the property needs work, there is usually room for profit.

Reprinted with permission

When choosing an area where to buy a rental property, there are several things to consider including, distance from your home, supply of potential tenants, average rents you can collect and the ability of tenants in that area to pay you.

I would choose property where people want to live, close to shops, parks and decent schools, and in a well-kept neighborhood. There's nothing worse than owning a rental property without any renters. In addition, check out any restrictions on renting with the home owners association, which, if there is one, can have a say in any rental agreements.

Plan on spending time and money advertising for and interviewing potential renters. Have a contingency plan in place if a unit remains vacant for a few months.

Determine what a competitive rental rate is for your property by asking rental agents what they would expect to charge, by reviewing area rentals, and by personally visiting rentals available in the neighborhood.

Run the numbers. Make certain that whatever income you derive covers your costs of owning the property, plus a profit.

Check to see whether the value of other area properties have increased or decreased in the past five years. Try to buy in an area that's on the way up.

Be on the lookout for any hazards common to older properties, such as asbestos, lead-based paint and electrical systems that are not up to code. Budget in reconciling these problems.

Discuss any tax benefits with a tax specialist. There may be local tax incentives for renovating your property as well as advantageous approaches to declaring your expenses.

In Summary

Income produced meets financial goals Suitable property
Appealing location
Vacancy rates
Neighborhood rental rates

Now you need to know the cash flow

First, calculate taxable income or loss from the property. Taxable income or loss is rent received minus three types of expenses: operating expense, depreciation, and mortgage interest expense.

Assume the purchase is $92,500, of which $15,000 applies to the land and $77,500 to the building. Depreciation of the cost of the building is a tax deduction even though depreciation is not paid out in cash each year. However, the deduction must be spread over 27.5 years. Divide the $77,500 cost of the building by 27.5 years. Your depreciation expense is $2,818 per year.

Assume a mortgage loan of $92,500 for 25 years at 10%. The first year's payments would be $10,152 including about $9,270 of tax-deductible interest.

Suppose the property is rented for $13,800 a year, and the total of operating expenses paid by the owner, such as property tax, insurance, and repairs, is $2,500. Subtract from rental income of $13,800 the three types of expense: depreciation ($2,818), interest expense ($9,270), and operating expense ($2,500). The result, for tax purposes, is a rental loss of $788.

The tax rules on rental losses are different if you're a real estate professional. But if you're not a professional, here's how your rental loss could affect your income tax

If you actively manage the property and your adjusted gross income does not exceed $100,000, the rental loss (up to a maximum of $25,000) could be deducted from other income such as salary, interest, and dividends. Multiply the rental loss by your federal income tax rate

Cash flow can now be calculated:

Rental Income - + $13,800
Plus: Tax savings - + 788
Less: Operating expense - (2,500 )
Less: Mortgage payments - (10,152)
CASH FLOW = $1,936

Calculating the cash flow on a rental property investment you're considering will help you decide whether the investment is a good one. Avoid investments with a negative cash flow because you'll have to come up with additional money to cover operating costs and debt payments.

Your offer needs to be based upon your current income level, the cash flow of subject property and most importantly the motivation of your seller mixed with your title research.

Reprinted with permission of John Michael

1. Find a home to lease option. You need to show 12 months of payments on time. Try for an 18 to 36 month lease option. There are many resources to help you locate lease option property.

Realtor.com is a great source for lease option property

2. You and the property owner need to sign the agreement before a notary and then you need to record the document.

This will cloud the title and provide you what is called notification protection

3. Make your payments on time.

4. Make your payment by check and keep these cancelled checks. This is the best proof to a lender that you have made your payments as agreed.

I suggest opening an account just for this home for better record keeping

5. Keep a copy of your signed contract.

6. Don't wait until the last minute to apply for a mortgage to pay off your option. Start 5 months before your option comes due.

7. If possible holds off on any large purchases until you have paid off your option.

8. Keep your property in good shape. If you are buying your home on an option, the lender will want the property appraised. The higher it appraises for in comparison to what you owe the better for you! Take photos of the property before you move in. Do cosmetic repairs that photo well and improve its appearance.

9. If possible, don't change jobs right before applying for your mortgage (keep that job until you get your mortgage).

10. If you don't have any established credit that reports to the credit bureau - try to establish some. Do not get any more bad credit reports during your lease option.

11. Keep all your important papers together.

Hi everyone,

First, I am not knocking carlton sheets. But here is what I know......

Sheets is good if you know NOTHING at all and need the basic of basics.

As with everything else, the info is free on the internet, but one has to decide what their time is worth.
I know that Sheets is only the name and face of the program. He no longer owns it and hasn't did a deal since the 70's.

I have a friend, that bought the course. She was then called to purchase more, she did so... spent the whole savings on the entire program the sheets outfit offers.

So she calls for advice on a deal. She gets one person, they tell her to do this and that. She does, calls back for more coaching, gets another person, and she has to explaine everything to the second person.

The second person then disagreed with what the first person told her to do and tells her to do..bla bla bla.....

Same with the 3rd call. Confused? so was she :crying:

The coaching center is a call center. and 99 % have never done a deal. They answer questions based on what is on the puter in front of them, then because they have dolled out advice, add their 2 cents to it.

They don't know your local area or property values. Their advice can be great if again it is basic questions such as what is a short sell, what is a L/O kind of thing.

This is not meant to discourage anyone. Others experience may vary... just thought I would add. :beer:

John Michael hosted a chat and this is the text from the chat that is posted.

I hope you enjoy and learn. These are just basics so to build a foundation.

johnmichael: Let me start off with a little introduction, I have been in the business of real estate investing for 20 plus years Using Sub 2, Land Trust, Lease Option, Owner Finance, 1031 exchange, No money down, Using investor funds for purchase and the list goes on.
johnmichael: I enjoy working with pre foreclosure homeowners! Over the years I have bought and sold commercial and residential properties. I have also owned many businesses:
johnmichael: Laundry Mats, Retail Stores, Flea Markets, Convince Stores, Arcades, Rack Merchandising, Mystery ,Mystery shopping Company, Auction Centers, Answering Services, Vending, And the list goes on.
johnmichael: Now enough pumping sunshine up my own skirt LOL
johnmichael: Do understand we will be going over the basics and then step by step jump into the more advanced and creative strategies of locating Real Estate
johnmichael: I do want to cover basic investing strategy for new investors;

johnmichael: STEP 1 - Buy a piece of real estate under the most favorable terms and conditions possible with as much leverage (OPM--other people's money) as you can.
johnmichael: The art of this game is finding money
johnmichael: Money is everywhere folks
johnmichael: How many Dr's in your towns
Dan_Auito: We are gaining strength in that dept as more and more lenders are finding our home here
johnmichael: The are of OPM is just asking for it!
johnmichael: So if you have a good deal just ask
Dan_Auito: I am finding older family memebrs friends are pooling there money on me to return 15% or higher pat days for them
johnmichael: So how many knows does it take to get a yes? Anybody know
johnmichael: My investor I find them by way of letter
johnmichael: One key source is to watch the foreclosure sales
johnmichael: Search for the person who buys 2 or 3 props
johnmichael: What do you have?
johnmichael: I will teach you over the next few chat's how to find even more money to do your deals
Dan_Auito: again mailing under the radar screen with a sustained campaign pays off
johnmichael: STEP 2 - Fix it up or improve it in some way. This step could involve anything from paint and elbow grease to converting an apartment complex to condominiums or timeshares.
johnmichael: STEP 3 - Sell or finance the real estate in some way to be able to compound profits and find more real estate to follow the same three-step process.
johnmichael: The simple 3 steps will in as little as 5 years provide you with the income that will just blow you away!
johnmichael: One very important you must be a Creative thinker - When you combine traditional brainstorming with creative thinking techniques you will advance pass your competition
johnmichael: So what is creative thinking to you?
johnmichael: We are taking baby steps
johnmichael: Inside The Box thinking means accepting the status quo. For example, Charles H. Duell, Director of the US Patent Office, said, "Everything that can be invented has been invented." That was in 1899: clearly, he was in the box! Moreover, he was wrong!
johnmichael: Thinking Out of the Box Brings Profit!
johnmichael: When I first started doing 3 to 4 deals a year was great but thinking out of the box has taken me to a level that is 10 fold that every month
Dan_Auito: one things for sure, you can't follow the herd in this biz
johnmichael: Following the norm will not make you wealthy!
johnmichael: Make locating real estate prospecting easier and more fun when you approach it like a game of cards, keep your aces and play by the rules
johnmichael: For example, there are 52 cards in the deck—your job is to find the 4 aces that will do business with you now! There’s nothing wrong with the other "cards"—they’re just not what you’re looking for right now. Consequently, when someone says "no,"
johnmichael: just remind yourself this person is a "discard" not an "ace."
johnmichael: Are you starting to understand the game - it's all about numbers!
Dan_Auito: make a list of potential prospects and start checking them out. Who is your best prodspect to loan you the funds now?
johnmichael: Like in any other game, you also need to play to your strengths. You need to have a script that reflects who you are and mirrors your language patterns, not those of someone else. Consequently, a
johnmichael: script written in your own words and that reflects your niche will yield the best results as well as being the easiest to remember.
johnmichael: While you may feel that writing your own scripts is a tough assignment, in actuality, it’s fairly simple. Here are the components of an effective script.
Dan_Auito: scripts are worth money hee hee
johnmichael: A greeting: Use "Good morning," "good afternoon," or "good evening." Avoid using the word "Hello" because it is less powerful than the other three alternatives.
johnmichael: Your name and company. An offer of service. A request of the prospect if they are interested in your services
Dan_Auito: If they don't want to play you can use good ridence
johnmichael: To many of us spend time on deals that will never be
johnmichael: You have to know what you want, what you can do, and if you have the money!
Dan_Auito: motivation is more important than location in most cases
Dan_Auito: preperation and ready resources arekey
johnmichael: Real estate investing is just a numbers game!
Dan_Auito: the more hooks in different streams the better
johnmichael: If you do not understand this one point you will not make it to the level you need to be
Dan_Auito: multiple offers, adds and acquisition techniques
johnmichael: Many of us know who Mickey Mantle is and that he had - 536 Home Runs
johnmichael: but we forget that he had Over 1,700 Strikes to get to the 536 home runs.
Dan_Auito: babe ruth home run king and strike out king as well
johnmichael: Over my years of teaching I have found that most fails simply due to the strikes
Dan_Auito: learn to accept rejection
johnmichael: It only takes one deal
Dan_Auito: a month!
johnmichael: So who cares about the strikes
johnmichael: Let's take a look at the numbers for 2004
johnmichael: Realtor Sold Homes - 6 Million
johnmichael: FSBO Homes - 2.7 Million
johnmichael: Owner Financed Homes - 1.2 Million
johnmichael: Over 42 Million Homes Listed For Sale
johnmichael: Did you just see that last #
Dan_Auito: 120 million dwellings in the U.S
Dan_Auito: 294 MILLION PEOPLE
johnmichael: So you have to ask your self what happen to those homes?
johnmichael: Why did you not get one or two or even three
Dan_Auito: PROBABLY SOME MOTIVATED SELLERS OUR JOB IS TO FIND THEM SO?
johnmichael: Now look at this Homes Foreclosed - 1.7 Million
johnmichael: Over 53.6 Homes Available - 1 Million + Per State
Dan_Auito: THAT NUMBER IS GOING TO GO UP ALONG SIDE INTEREST RATES FOLKS
johnmichael: Can you see the opportunity that is available for each of you in the big world?
johnmichael: Look at it this way with just listed property out of 42 Million Homes Listed For Sale with realtors
johnmichael: only 6 Million sold and that gives us how many to deal with as an investor?
Dan_Auito: 36
Dan_Auito: MIL THAT IS
johnmichael: You got it! Look at one more staggering number is that every day in the good old USA we have 1 million people facing foreclosure!
johnmichael: So the numbers are there and it's simply up to you to make the deal!
johnmichael: Why are you not getting the deals?
Dan_Auito: They are bombarded by many offers. What's you trick to getting to them FIRST!
johnmichael: So you find them, what's the point if you do not know what to do with it!
johnmichael: You need to be personal investor - A form of person-to-person communication in which the investor
johnmichael: works with prospective sellers and attempts to influence a customers need in the direction of making
johnmichael: A WIN - WIN Transaction
johnmichael: Without this what is the point?
johnmichael: Mind set folks will make you a success in this business
KristinWI: I got that!
johnmichael: You keep asking how to find the deals!
Dan_Auito: Getting all the necessary documents is a big part of it
johnmichael: Tell me how many home did you run by today
johnmichael: How many deals did you pass up
johnmichael: If you are not looking at the deals you will never find them
Dan_Auito: Kodiak only has 2500 homes I'm glad I'm leaving!
johnmichael: To be a true REI you must master five core skills
Dan_Auito: You don't want to repo the den believe me
johnmichael: How to consistently find motivated sellers
johnmichael: Without a motivated seller you have no deal!
johnmichael: How to be a master negotiator
Sid: Stay under the radar
johnmichael: The best way is to loacte them by way of "NOD'S" Notices of defaults
Dan_Auito: Attorneys, research services, your own letters, public records lis pendens etc...
johnmichael: You can not find RE in Springfield it's all mine LOL
johnmichael: As an investor I have taken hundreds of courses the are of becoming a negotiator
Dan_Auito: notice of default if your wondering folks
johnmichael: Finding them in the legal notice is to late
johnmichael: I will show you also how to locate the NOD's as we progress
johnmichael: Locating a great deal is all about your ability to DETERMINING FAIR MARKET VALUE
Dan_Auito: I love having an appraiser as a partner
johnmichael: So you locate it! What's it's value
johnmichael: Technically speaking, the fair market value is the price a property is actually worth. This price can be determined by comparing it with the actual sold price of similar properties using square footage, age,
johnmichael: construction, number of bedrooms, bathrooms, and other amenities, etc. A fair market value is what a particular property should sell for in a reasonable period of time when exposed to qualified buyers. A fair
johnmichael: market value is usually not the price being asked by the owner or realtor.
Dan_Auito: CMA's, past sales records, other recent sales on same block, sq/ft prices etc
johnmichael: How do you determine the fair market value?
johnmichael: Cultivate Realtors
Dan_Auito: stats say owners ask 9.1% more thanthey expect to get on average
johnmichael: Realtors have easy access to recent information on the sale of properties. Building a relationship with a realtor(s) can enable you to obtain MLS (Multiple Listing Service) information, property and tax data,
johnmichael: comparables and a whole host of other information.
johnmichael: You should have a reasonable idea of what to initially look for before hitting the market. Keeping in mind you want to sell the property within a reasonable amount of time, look for the average home. Stay away
Dan_Auito: being in the market and constantly looking at many properties is also a key to discern quick values
johnmichael: from the high end of the market. The holding time can be unreasonably lengthy. Moreover, the low end is also to be avoided unless you have the time and expertise to spend on a fixer-upper. You will turn the
johnmichael: property around quicker.
johnmichael: As a beginning investors avoid a rehab property or the lure of a high priced property as many beginning real estate investors get distracted form the fact that the ideal property is the one that you take control and resale for a profit.
Dan_Auito: fixer jay decima goes for junkers and makes gold
johnmichael: The easiest place to make money is in the middle and below price range range.
johnmichael: The property should be free of damage and need no major repairs unless you are an experienced construction worker or builder. Choose properties that need only minor repairs like paint, carpet cleaning, landscaping or a general cleanup.
johnmichael: However, if a property can be bought less than 50% FMV, more extensive repair can be considered.
johnmichael: Homes in the middle price range and below are in more demand and tend to sell faster.
johnmichael: You need to only focus on areas that you can handle!
johnmichael: A great place to start is in real estate publications or the local newspaper. Hundreds of properties are sold through the classified ads. They are readily available and with a few insights, you can focus on the ones most important.
johnmichael: LOOK FOR KEY WORDS IN CLASSIFIED ADS
johnmichael: These words identify motivated sellers. One of the very best sources of properties is your local newspaper. Literally hundreds of distressed properties are advertised for sale. You cannot afford to not use this source!
johnmichael: Out of Town Owner - Non-Qualifying Loan - Foreclosure - For Sale By Owner (FSBO) - Will Sacrifice
johnmichael: Hot markets has nothing to do with not loacting deals
johnmichael: It's all on approch
Dan_Auito: another key is marketing to get those motivated sellers calling you first before they ever place an ad. Hence I buy anything cash like yesterday CALL NOW!
johnmichael: Distressed Property - Price Reduced - Illness Forces Sale - Must Sell - Repossession - Moving
johnmichael: Do you see that last word Moving
Dan_Auito: NETWORK
johnmichael: When I see a moving van I stop
johnmichael: I have found pre-foreclosure
johnmichael: I have found rentors
Dan_Auito: WHEN i SEE SOMEONE CHECKING OUT OF HOME DEPOT WITH A FSBO SIGN i FOLLOW THEM HOME"
johnmichael: So now I call the landlord
johnmichael: What makes a landlord unhappy?
Dan_Auito: VACANCIES
johnmichael: NO $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Dan_Auito: DESTRUCTIVE TENANTS'
johnmichael: If you were to call on all the property that is available in your market and visit each home, you would go crazy! It would take forever and you would never find the gems in real estate. A telephone, record form, and a quick survey are your best tools to
johnmichael: to maximize returns on time and effort. Below is a sample survey script and questions you should ask to get the ball rolling.
johnmichael: Script #1: “Hi, my name is _____________. I would like to discuss your property for sale. Is now a good time? (If not, schedule a conversation). I’m looking at several properties and just need to take a few minutes to see if your property
johnmichael: and just need to take a few minutes to see if your property would be of interest to me. If it is, I would make an offer within 24 hours.”
Dan_Auito: multi line phone with your different programs messages and an 800 number won't hurt either
johnmichael: I use prepaid cells for all of my market area's
johnmichael: I have found that when doing business out of are a local area code get's a lot more calls
johnmichael: Now we have just taken some baby steps
johnmichael: So I'm going to give you a nice steak
johnmichael: No I use Virgian and you should too. I have stock ing the company
johnmichael: Are you ready for steak
Dan_Auito: medium rare please
johnmichael: Any realtor in the house?
Dan_Auito: Ya what do you want
johnmichael: How many homes do you sell that you list? All or is it just a numbers game
Dan_Auito: You know I am John
Dan_Auito: about half
johnmichael: Do we know who realtor.com is?
Dan_Auito: of course
johnmichael: What is the value of an expired listing to an investor?
Dan_Auito: that depends
johnmichael: Why do realtor's not like to give them out?
Dan_Auito: If the seller is upside down or just testing a high price then it is a waste of time. SCREEN
Dan_Auito: BECAUSE THEY WANT TO RE LIST
johnmichael: Now how would you like to get all the expireds you want without a realtor?
johnmichael: I have been using realtor.com since the late 90's for farming expireds
johnmichael: You sign up for their service it's free
johnmichael: You farm out your property by looking at active listings
johnmichael: You save any properties that look like a possible
johnmichael: 10 to 15 per week
johnmichael: you check back in a week you will see in red listing no longer available
Dan_Auito: maybe go to the library and look up six month prior ads and give them a buz
johnmichael: So how many listing where their last year
johnmichael: Over 42 Million Homes Listed For Sale
johnmichael: So how many did I say that sold last year?
Dan_Auito: 6 mil
johnmichael: So how many expireds do you have to work with?
Dan_Auito: 34.3 mil
Dan_Auito: plenty
johnmichael: So in our next chat I will share my letter that I send to get them to call?

The Permanent Index Number

The first step in the tax search is to find the Permanent Index Number (PIN) for the property. All property tax records in most Counties follow this method of identifying properties. PIN's are listed by address in the Street Index Number books in the Treasurer’s Office or Assessors Office you will see the Street Index Number books.

These books are arranged alphabetically by street name. Within each book the addresses are arranged numerically. The street number on the building may not correspond to the address listed in the Street Index Number book.

For this reason, it is a good idea to check out the addresses of the adjacent buildings, or draw a little map of the area before doing your research so you will have a better chance of pinpointing the correct index number.

When you find your address the entry will look something like this:

Street No. Vol. A-AS- Blk-Pcl-Unit Town Name 1852 N. Talman 531 13-36-411-026-0000 West

Locating Tax Information

Now, with your PIN clutched firmly in hand, you are ready to begin your tax search. Property tax records are kept normally by County offices:

1. County Assessor’s office
2. County Treasurers office
Or
3. County Clerk s office.

The County Assessor keeps the main records on property assessment, although some records may also kept by both the Treasurer and the Clerk.

The County Treasurer/Assessor keeps records on the amount and payment of current taxes.

The County Clerk keeps records for past years. This office also records whether back taxes are redeemed (paid) and all information regarding tax sales.

Information is kept in five main record systems:

Real Estate Collector’s Warrant Books (Warrant Books)

These books contain a yearly accounting of all County properties, their assessed value, the amount of taxes due, and whether they were paid.

Tax Judgment, Sale, and Redemption Records Book. (Judgment Books)

These books contain a yearly recording of tax delinquent properties, any sales or redemption's. And filing of objections or errors in the assessment of the property.

Scavenger Sale Books

These books contain (for any year in which there is a Scavenger Sale) an accounting of all properties eligible for Scavenger Sale and information on any bids made at the Scavenger Sale and redemption's made afterward.

Property Record Cards

The Assessor’s Office has a card for every property containing all information concerning assessment.

Current information is also kept on microfiche or Computerized Data Files.

The most up-to-date property data is contained in the Computerized Data File.

This information is available to the Assessor’s staff but not to the public on a regular basis. Computer printout of some of the data is known as the "Field Analysis Ratio Report, and is available for inspection on special request to the assessor.

Warrant Books

The first step you will probably want to take is to find out who the current taxpayer is and whether the current rent taxes are paid.

This information will be helpful even if you are just looking for the owner of a property

EVALUATION FORM
For Courthouse Research

DATE: _____________________________________________

OWNER’S NAME: ___________________________________

ADDRESS: __________________________________________

CITY, STATE, ZIP: ___________________________________

TELEPHONE NO.: ___________________________________

FILE INFORMATION

PROPERTY ADDRESS___________________________________________ ______________________

LEGAL DESCRIPTION __________________________________________________ ______________

TAX ASSESSMENT ___________________________ TAX APPRAISAL _______________________

YEAR BUILT_________________________________ SQUARE FOOTAGE ____________________

ATTORNEY _________________________________ PHONE ________________________________

BALANCE OWING ____________________________ LAST PAYMENT _______________________

ORIG. LOAN DATE ___________________________ NOTE AMOUNT _______________________

CASE # ______________________________________ CURRENT TAX BILL ___________________

WARRANTY DEED ______________________________________________ B _______ P _______

MORTGAGE OR DEED OF TRUST _________________________________ B _______ P _______

TRUSTEE’S / SHERIFF’S DEED ____________________________________ B _______ P _______

ADDITIONAL LIENS _____________________________________________ B _______ P _______

ADDITIONAL LIENS _____________________________________________ B _______ P _______

COMMENTS__________________________________________ _______________________________

Sorry if this is long. I generaly start with an on-line basic search then move to the court house. These are the areas I look at.

A title search generally includes mapping a chain of title by examining all the recorded deeds concerning the property. A chain of title is established by determining that the present owner received valid title from the prior owner, and the prior owner received valid title from that prior owner on down the line for a certain number of years.

What’s on the title?
You will find:
• the names of the owner(s) of the land;
• description of the land;
• easements;
• mortgages;
• Caveats; and covenants.

What you can find and where:

TAX ASSESSOR’S OFFICE

WHAT YOU CAN FIND:

• LEGAL DESCRIPTION
• PROPERTY DATA
• TAX APPRAISAL

RECORDER OF DEEDS

WHAT YOU CAN FIND:

• HISTORY OF TITLE
RECORDED DEEDS

ELEMENTS OF A VALID DEED

 Name of the grantor
 Name of the grantee
 Recital of consideration
 Legal description of the property
 Words of conveyance
 Signature of the grantor
 Acknowledgment
 Delivery and acceptance

TYPES OF DEEDS

 General Warranty Deed
 Special Warranty Deed
 Quitclaim Deed
 Deed of Trust / Mortgage
 Release Deed
 Trustee’s Sale Deed
 Sheriff’s Deed

DEEDS: BOOK ACCESS

1. USE PROPERTY’S LEGAL DESCRIPTION
FOR SUBDIVISON INDEX TO LOCATE LAND
LIST BOOK / PAGE NUMBER

2. PULL OUT LAND LIST BOOK, TURN TO
CORRECT PAGE NUMBER AND NOTE
TRANSFER OF OWNERSHIP

3. LOCATE TRANSFER OF TITLE

4. GO TO MICROFILM AND PULL
THE CORRECT BOOK, THEN
SEARCH FOR THE CORRECT
PAGE.

5. VERIFY CURRENT AND
PREVIOUS OWNERS ON
WARRANTY DEED

DEEDS: COMPUTER ACCESS
1. SELECT NAME OPTION ON THE FIRST SCREEN

2. TYPE IN NAME OF CURRENT OWNER

3. CROSS REFERENCE LEGAL DESCRIPTION FOR DEEDS RECORDED ON SUBJECT PROPERTY

4. BEGIN SEARCH WITH WARRANTY DEED, THEN CONTINUE SEARCH FOR OUTSTANDING DEEDS OF TRUST

5. DEED OF TRUST:
VERIFY PARTIES, NOTE AMOUNT, TERM OF LOAN, INTEREST RATE IF AVAILABLE

TREASURER OR COLLECTOR OF REVENUE’S OFFICE

WHAT YOU CAN FIND:

PROPERTY TAX BILL

 THE PROPERTY TAX BILL

Morgage still owed:

How do we estimate the amount owed on a property?

Say the Mortgage Date was 1/1/94 for $200,000 at 7.75% interest. The monthly payment is $1,510.66 and using the loan amortization it has a balance of $148,223.48 left on the mortgage. Since the loan was in 94 for $200,000 and about 10 years has gone by we have a great equity spread even without even considering property appreciation.

I will also post the form I use.

Lisa

I have a link that has many many many on-line recordes and accesors. It is a free link and may help those trying to find on-line sources.

There are numerous county public records databases available online for each
state in the county. NETR Public Records Online is the best site on the net
for free County Public Records

Located at http://www.netronline.com/

From their home page, click on 'Public Records". On the next page, you
simply click on the state. You'll be taken to a page that lists all the
counties of the state.

This page contains details on each county, such as:

a.. Appraisal District Phone Number
b.. Appraisal District Online Database
c.. Recorder Phone Number
d.. Recorder Online Database

Lisa

Thought I would repost this for the new people....

Monday - Mail, Fax, or email Advertisement at least 15 letters to lenders and at the end of the 1st month you will have contacted 60 lenders. You will then start getting lenders to send you their lists before Anybody else. (takes about 30 minutes)

Mail, Fax, or email at least 10 letters to Realtors, Contractors, Real Estate Attorneys, etc and at the end of the 1 St. month you will have contacted 40 Leads producing sources. You will then start getting Leads & business contacts. (‘takes about 30 minutes)

Search Internet sources for Leads (‘take about 1 hour) Study real estate related educational material (take about 1 hour) This I still do!

Tuesday - Spend day networking with realtors, bankers, credit unions, mortgage companies and all others you come into contact with (spend about 2 to 3 hours)

Wednesday - Go through newspaper for homes for rent, FSBO, Homes For Sale, Legal paper listings and searching neighborhoods and drive by. (‘spend about 2 to 3 hours)

Thursday - Court House Research. (‘spend about 2 hours)

Friday - OFF

Saturday - Inspecting Properties & Make Offers (‘spend about 2 hours)

Sunday - Inspecting Properties & Make Offers (‘spend about 2 hours)