

Your Start-Up Guide To

Investing In

Tax Lien Certificates

\- Second Edition-

Ted Thomas

America's Tax lien Certificate & Tax Deed Authority

Table Of Contents

Mission Statement

About The Author

Welcome!

What is a Tax Lien Certificate

What is a Tax Deed?

The Tax Lien Certificate Process

Tax Defaulted Auction

 How does this help the government?

 Why Tax Liens & Not the Stock market?

Why should you listen to me?

 Why Should You Invest in Tax Lien Certificates?

The Tax Lien Certificate Process

Tax Defaulted Auction Process

My Favorite State For Investing

 Why Haven't I Heard Of This Before?

A Quick Review

 How lucrative this can be for the "little guy"

Case Study: Caryn Russell

How I Got Started...

The Secret Stuff

Getting Started for $500

 3 Cents to 10 Cents on the Dollar

A Trip With A Movie Star

 Perfect for the Beginning Investor

Getting Started

Case Study: SIngle Mom

 The $100,000 Mistake You Don't Want To Make

 Case Study: Florida Woman Loses $104,766 At Tax Auction

 Case Study: Single Mother Raising a Handicap Son Goes From Zero to $125,000 in 13 Months

 Tax Lien Certificate States and Rates

Tax Deed States

 Frequently Asked Questions and Vital Answers

Message from the Publisher

Secrets Video

# 

#  Mission Statement

The goal of Ted Thomas and Jones and Trevor Marketing is to improve the lives of our customers that are involved in the business of growing and investing in a portfolio that improves financial security.

We strive to have a long lasting, positive impact on society. By improving the investor's quality of life and profitability of their investment portfolios, which in turn allows those people to enjoy safe, long term income and enables their families to live peacefully. Our mission is to encourage, guide, and advise investors and entrepreneurs to make more profits, so as to get more time off and grow their portfolios to provide more financial freedom and simultaneously spending more time away from the job, living lives they enjoy and spending time with their family and friends.

DISCLAIMER

This publication is intended to provide accurate and authoritative information with regard to the subject matter covered. It is offered with the understanding that neither the publisher nor the author is engaged in rendering legal, accounting or professional services. If legal advice or expert assistance is required, the services of a competent professional should be retained.

Every effort has been made to provide accurate information. However, this is a dynamic field of endeavor in which new laws are enacted and old laws revised and/or interpreted on a continuing basis. Readers are advised to proceed with caution before implementing the strategies contained herein and to consult with appropriate professional advisors prior to committing time and financial resources, as a result of the material contained in this book or the seminar from which it was obtained. These materials are for instructional purposes only.
All Rights Reserved

©2012 Ted Thomas, Jones & Trevor Marketing. All rights reserved. No part of this book may be reproduced or copied in any form, stored in any information retrieval system, or transmitted in any form or by any means, except for brief reviews, without the written permission of Ted Thomas and Jones & Trevor Marketing.

Federal Trade Commission Required Disclosure:

I cannot guarantee results. I can tell you local governments have been conducting Tax Lien Certificate and Tax Deed auctions for decades. Government has proven and tested every element of this system. Disclosure requires I tell you not everyone will earn big returns like the examples given in this guide.

Ted Thomas Jones & Trevor Marketing

3700 N Courtenay Parkway, Suite 106

Merritt Island, FL 32953

Published in the United States of America

#  About The Author

Ted Thomas is a Florida based educator, publisher and author. Thomas is publisher and author of more than 30 books. His guidebooks on Real Estate have sold in four countries of the world.

After watching his parents work hard their whole lives and die almost broke, Thomas decided it was time to dedicate himself to finding an investment strategy that would help senior citizens, as well as young people, avoid the humiliation of not having enough money.

In two years of researching and traveling, Ted has visited thirty states and hundreds of counties. He has inter- viewed dozens of government officers and venture capitalists.

From that effort has emerged the most comprehensive program for low risk and high yield returns available in the U.S.A. These discoveries are almost hidden government programs that yield up to 25% interest. Surprisingly, these government-sponsored programs have been almost secret for decades.
Ask yourself...

Are you 100 percent satisfied with the wealth building strategy you're using right now? Do you have enough funds in your retirement account right now to ensure you will live comfortably in your golden years? Do you have adequate savings that will cover any emergency costs? What about your kids? Is their college education paid for?

If you can't honestly answer, "Yes!" to any of these questions then you need the 100 percent guaranteed materials that I offer.

If you've tried the "hit and miss" style of investing practiced by most brokers, bankers and the majority of financial planners... If you feel like buying and selling real estate is too risky...

If you like a conservative approach to protecting your money against loss as well as inflation... Then, this start up guide offers critical information, advice, and resources for you.

#  Welcome!

If you are a newcomer and you're surfing the web looking for new ways to make money, welcome to the Information Source for Tax Lien Certificates and Tax Defaulted Real Estate. You're about to discover a segment of the investment market that is little known, however, it is a highly effective and lucrative method to make money in a safe, secure environment.

The internet is filled with GET RICH QUICK offerings- programs. Some actually work and help produce income, many do not work and are a waste of money. More than likely you're reading this book, and while you're doing so, your email box will be filling up with GET RICH QUICK offers, soliciting you to buy other programs.

This book is all about the safe secure government controlled program (monopoly) that has been and is now administered and maintained by a strict legislative process that's been in place for over 100 years. The average person can become accomplished and participate in this process after a short learning period, usually 3 or 4 weeks, in other words, minimum training. There are pitfalls and traps to avoid, and I'll point them out in this text and show you how you can avoid them and make money.

You're embarking on an exciting journey if you choose to follow the steps I've outlined in this book. The lessons in the book will help you generate money for the rest of your life. To make this as easy as possible for you, I've created roadmaps, they'll show up as graphics and I've created short narrative stories which are really case studies. The case studies will be good learning capsules that will accelerate your learning process.

In the text, I'll refer you to video links and you'll learn by watching the experiences of people just like yourself. Let me reassure you it's possible to go from little or no knowledge and experience, just follow the simple steps that I'll outline and you could be making money in weeks.

## WARNING!

The FTC, Federal Trade Commission, requires I tell—explain to you that any investment has risk and that anything I tell you or recommend to you, that you could lose money. If you watch television any evening I'm sure you've seen disclaimers for all the medicine remedies, it's the same thing here. Life has risks; I'll do my best to show you how to avoid the risks. On the other side of the ledger, the positive side the government has been successfully auctioning Tax Lien Certificates and Tax Deeds for a century. There will be rules and procedures to follow, most are straightforward, the whole system was developed when people couldn't read or write. Today each county has rules to follow and the state legislatures have mandated how the rules should be enacted. To guide and assist you I've developed state, county, and municipal directories, which you may access when you need them.

To explain this process and enlighten you I've kept records of my talks and presentations as I travel the country. I've included many separate presentations as short learning capsules and added illustrations in real life stories so newcomers and experienced students of Tax Lien Certificate and Tax Defaulted Auctions could learn quickly and easily.

## Not legal advice

I'm not an attorney, so I can't give you legal advice. I'm an entrepreneur who discovered this program almost two decades ago. I've been teaching people about Tax Lien Certificate and Tax Deed opportunities for about 20 years. I'll try to put as much information as possible in 100 pages, this won't be everything I know but it will be enough to give you A FAST START understanding of what's available and how you can take advantage and profit from this 100 year old system. This Government system rewards private property owners with TIME, investors with MONEY and the government with a logical PROCESS that works.

This is a text journey and I'm going to take you with me on my travels around this country and you'll meet people that are just getting started as well as some seasoned professionals. But first...

#  What is a Tax Lien Certificate

To give you an answer, I'll tell you briefly how and why these Tax Lien Certificates are created. All states allow the local counties or the municipalities to collect property taxes, taxes are based on property values within the county or the municipality.

The tax rates are determined by the county commissioners or board of supervisors locally. All property is taxed: ranches, commercial, single family homes, boat slips, mobile home parks, everything! Each property owner pays a proportionate tax based on the value of land and structures.

You can make substantial money helping delinquent property owners pay their taxes. I'll cover more of that in a just a few minutes. All 3,000+ counties and over 1,400 municipalities are taxing entities-districts. These entities issue tax bills, and they expect to be paid.

Thousands of property owners do not pay property tax on time. This situation causes major problems at the county and municipal level of government. The state legislature created a remedy for local governments. In approximately half of the states the local county will sell at auction Tax Lien Certificates. In a moment I'll show you graphically how this happens and how you can profit. The states that don't sell Tax Lien Certificates auction the property for the back taxes, the starting bid is the back taxes. They're referred to as Tax Deed states where as the former were referred to as Tax Lien Certificate states.

This book is all about Mr. and Mrs. America helping their local government and helping late paying in default property owners save their property from the auction block. You're helping the government by giving them cash and further helping the government from having properties that are abandoned and not on the tax rolls. Everybody wins: the investor, the property owner, and the government.

## Meet Marilyn

Here's Marilyn, she buys Tax Lien Certificates online, from home using her computer and the internet. In a few hours she invested in 48 Tax Lien Certificates. She is earning 8 or 9% interest on some certificates, as much as 18% on others. Her checks will come from the government. She is making a safe, secure investment.

## Meet Bob

Here's Bob Schumacher. He purchased this lake front lot for only $3,700 at a Tax Defaulted Auction. The property owner failed to pay property taxes. Bob ultimately resold that lot for a sales price of $24,000. This is a perfect example of what happens when a property owner fails to pay taxes and forfeits the property to the Tax Lien Certificate buyer.

Later on in this text I'll reveal case histories of people who weren't born with a silver spoon, people who struggled to survive, people who studied and learned and most importantly, they took action and changed their lives. In almost two decades of teaching thousands of people, many attended live trainings; others used home study materials to improve their lives. You can do this and start with very little money.

#  What is a Tax Deed?

To explain a Tax Deed I must first review the process of how local government is funded. It's all very simple. It works like this, property owners, all property owners must pay their proportionate share of tax which is money that's used to run the local government. For example, a million dollar property has a tax as well as a $5,000 property. The tax rate is determined by the board of supervisors or the county commissioners. These are locally elected officials. The commissioners designate the collection process to the tax collector, the treasurer or the sheriff.

Simply stated, all real property is taxed at the local level: county or municipality. Tax money is the oil that lubricates the wheels of government, the money pays for schools, road, police departments, fire departments, hospitals, libraries, the county employees and more.

In 2012, millions of property owners will fail to pay property taxes. That lack of property tax payment will cause the local government to have a revenue shortage— not enough money to meet budgeted expenses and government services will deteriorate without those funds. To prevent a lack of police, fire departments and school teaching services, the legislature enacted and the county enforces rules on how to handle defaulting property owners. We're talking about property tax, which is a wealth tax, not income taxes.

#  The Tax Lien Certificate Process

####

To keep it simple, if the property owners don't pay taxes, local governments remedy #1 issue a Tax Lien Certificate then sell the Tax Certificate at auction. The sale gives the county the needed funds to pay for government services and it gives the property owner TIME to find, earn, borrow, the money to pay taxes. This is not new; it's a 100+ year old system.

#  Tax Defaulted Auction

Remedy #2 the county or municipal may "take" that is, repossess, foreclose upon the delinquent property and sell the property at auction, starting bid, the delinquent back taxes. The law in all states is if the property owner fails to pay property taxes they forfeit the property to the county. The county is in the government business not the real estate business, so the county-municipality will auction the property to the highest bidder. The money will be used to pay the delinquent taxes. If the county repossess "takes" the property in the majority of cases, the law allows the county to wipe out, that is extinguish the existing mortgage and other liens. This allows the county to sell at auction for very low prices, usually just the delinquent-defaulted taxes.

Savvy investors learn how to take advantage

of this government controlled system.

#  How does this help the government?

If the delinquent property isn't returned to the tax rolls at the auction, the government could ultimately bankrupt or alternatively the county commissioners would be required to raise taxes on all other properties to make up for the shortage.

Research reveals that 2,500,000 property owners will default on taxes annually. Most ultimately will pay, HOWEVER, what would happen if the property was abandoned and there was no legislative process like the auction to return the property to active use on the tax rolls? Think about deteriorated inner city property when it's abandoned and it's ravaged by vandals and becomes a hazard. I'm sure you're getting the idea.

Here's how it works:

  1. The property owner defaults and doesn't pay property taxes.

  2. The county or municipality notices the property owner to pay or forfeit to the county.

  3. The property owner fails to respond. The county announces the tax defaulted auction.

  4. The public auction takes place; the county sells to the highest bidder and uses the money to pay the delinquent taxes.

  5. The new owner returns the property to active use and pays the taxes.

  6. Everyone involved, especially the public, benefits.

  7. Savvy investors buy low and make money. THIS IS NOT A LEGAL GUIDE, IT'S ONE ENTREPENUER'S INTERPRETATION OF WHY AND HOW TAX DEFAULTED AUCTIONS TAKE PLACE.

## What have we learned?

One man's garbage is another man's gold. There's a more important view and that is, opportunity is everywhere. This one's been available for decades. You can get started for $50, $500, or $5,000. Tax Defaulted Properties are available in every county and every municipality in the USA.

You can improve your income in today's market with Tax Lien Certificates and Tax Defaulted Auction properties (Tax Deeds). I don't define my life as a real estate person. I use real estate and you can too to create the lifestyle most people dream about. I'm probably like you, and I didn't want an ordinary life that was just okay. I wanted a spectacular adventurous life that was exciting and I enjoyed. Investments have allowed me to travel the world in my own prop-jet airplane and to travel out-of-the-way places like all the states of Mexico and all the countries of South American and visit the Arctic Circle. I've been on safaris in the Serengeti and the game preserves of South Africa. I kept a home on Lake Lucerne in Switzerland for a number of years; all because I had investments that allowed me to live the life I wanted. Investments could do the same for you, if you'd like to profit with very low risk from a down economy and a crashing real estate market, in an upside down credit world that's brought America to its knees. In this text you can learn about properties that the government would like to sell for only pennies and they're all across America.

If you've read this far, I want to recommend you watch the video links that I've offered, I'll help you make the next step. The best way to learn is from someone that's doing what you want to do. I could send you a trained coach to your hometown and have that person spend days with you walking through the step by step process.

Alternatively, you could enroll in my IBGS (Intensive Business Growth System) which is a 24 lesson, online video learning system that requires 6 weeks and is combined with two hour sessions each week on a webinar with a seasoned professional. This is accelerated learning, start to stop, 42 days–6 weeks.

I have other inexpensive learning systems offline: CD's and DVD's, manuals, guidebooks, even a library. Many students finish their home study materials and they attend live auctions with me. Others attend auction classes; the point is, we have a lot to offer.

There's no substitute for "live training" in an intense, hands on, environment. At that event we can share with you information and systems from other students who have succeeded and made deals before you. There's no substitute for "live training", this is the way to take charge of your financial future; it's an investment in yourself.

Click the link below to watch a quick video from Ted Thomas:

www.tedthomascashflowgenerator.com/lp2/thankyou/

#  Why Tax Liens & Not the Stock market?

The market has been painful for many investors and devastating to portfolios. Computer trading and institutional investors have the advantage of computer algorithms and professional advisors that the man in the street will never have access to. At the time you read this message the market may be a BULL run up, for many that's exciting but when the BEAR CLAWS the market back to reality, all the gains disappear.

Sure the brokers and insiders and the speculators seem to do okay, even the news media does well, but what about the average Joe who wants more security and a little predictability and a measureable investment? The excitement and run up of the bull markets usually end up with despair, frustration and disappointment.

How does one feel when you're trying to explain to a loved one how your retirement money has disappeared; or 5 or 6 years of savings for your vacations have all been cancelled, there will be no upgraded car and you're not going to put in a new kitchen, what a pain! It gets ugly!

And how about the old standby your single family home

"the piggy bank" that always goes up in price?

At this writing, home values are still declining and many markets have 50% and 60% declines in value over the past few years. According to the FHA millions of homeowners across the United States have mortgages in excess of their properties value. Depending upon who you're listening to, the situation will be a decade before we see a recovery. Bankers foreclose on homes they don't know what to do with. After all, who would buy them? They are only valued at 45-50% of their 2008 prices. It's cheaper to rent, who wants to invest in depreciating assets?

## The consumers frustration

When you take into account that it will take decades to recoup those losses, it may be more realistic to assume the money is gone forever and it's time to develop a new strategy and put a new program in place. The pain and healing of a crashing, overinflated market can be mitigated but it's going to take a new perspective and different strategies.

Let's look at a different strategy. Entrepreneurs love Tax Defaulted Auctions because, nationwide, thousands of properties are sold at rock bottom prices, meaning 5 and 10 cents on the dollar. Investors on the other hand who have patience like to invest in Tax Lien Certificates the returns are guaranteed and come from the government. Ultimately, the investor gets paid with checks directly from the government.

Readers of this text will find their email box filled with offers of GET RICH QUICK programs daily. The question is, what has your life taught you about GET RICH QUICK programs? The stories of success you'll find in this text are real, the people are real. This will take work; however, the program works and has worked for over 100 years. Timid investors can practice on paper until they feel confident enough to take actions. Over 100 years of government administration and management has proven this works for the local government and for people who want to earn respectable, certain, and secure pay days.

####

## Common Sense is Not So Common

The perception for most people is if they use common sense in their business they will be successful. Here's a viewpoint that I've formulated over the past 40 years and the government's SBA office, Small Business Administration regularly release in depth information that expands on the subject. To paraphrase the SBA, 80% of all startup businesses fail in the first 5 years and an additional 80% of those left standing in the first five years, they fail before they reach their 10th anniversary. The point is, most fail; that's a 96% failure rate, it's not so common to succeed, 96% fail.

## Investors

Ask yourself, do you want a business? The facts are, going in you have a 96% chance of failing according to statistics; I'm not a preacher of doom, I'm just giving you information that the SBA publishes in their factual reports. You see, common sense isn't going to be enough for you to survive in business. It's going to take training, marketing skills, sales ability, administration, investment savvy and you'll need to learn a little about accounting and legal structures, that's just a short list of the skills you'll need to be in business.

To go for the big bucks and earn millionaire status is everyone's goal when they're young, life has a way of teaching lessons, some good, and some painful. At this point, do you want to be in business, if your answer is yes; I admire you.

If you don't want the day to day routine of business and all the associated challenges you can still earn generous returns from government Tax Lien Certificates, which are a passive investment. Tax Lien Certificates are available at auctions, and after a short wait (usually less than two years) you have a 97% chance that you'll get paid all of your investment back plus a generous interest rate of 16%, 18%, up to 36%. That's about as good as it gets in a very low risk environment.

Let's do a quick comparison. With Tax Lien Certificates you have a 97% assurance of making money and receiving a guaranteed government check, compare that with only a 4% chance of survival in a small business plus in a small business you'll probably work 40-60 hours a week just so you can get paid. Tax Lien Certificates you are required to work only a few hours a year.

There's a message here. Most entrepreneurs go for the gold. My experience reveals this creates a high failure rate. Investors, on the other hand, are looking for predictability, security, measurable earnings. It's up to you, what's your choice?

So my training has always focused on making people successful. So my purpose really is to give you guidance and direction and a helping hand and show you some safe, secure investments. Now, in my live seminars, which are really unusual because at the seminar you'll meet and you'll actually work with people who do what we teach. In other words, our teachers purchase and re-sell in this market. I call them visiting professors, and just like when I was at the Harvard Business School, we teach you how to do this with real case histories. Now, I've got to tell you, it's not always pretty, but it's the best way to learn how to do this and make your dreams come true. So that's just a little bit about me.

What we want to discuss in this text is making you successful, simple steps for getting properties for 10 cents on the dollar.

This is not a complete course. We've got to make sure that you know as much as you need to know to make a good, solid decision. Is this something you want to do in your future? And I want to be the person to teach you how to do it if you make a decision to move forward.

#  Why should you listen to me?

####

Some people ask, "Who's Ted Thomas?" After serving in the military my first real job was as an airline pilot for Aloha Airlines in Honolulu, Hawaii. That was my first career, but when I found out how lucrative it was to be in business, well, I made a dramatic change.

I said, "I've got to get in business and go out and start making some real money." So what I did is I went to California and I actually started a real estate business and we bought thousands of apartment units, small office buildings of California, Arizona, and Nevada, and that business grew and grew until 1986. And, the markets crashed just like they did in 2008 and 2009, and the whole market crashed values dropped and lost 30 and 40%.

Boy, I made a decision right then and there: No more speculating for me. I didn't want to be in that topsy turvy market. I got in the Tax Lien Certificate and Tax Deed business after that.

Now, for those of you that don't know it, I'm actually a bestselling author. My real estate foreclosure book has stayed in the bookstores for 12 years now. I took them off the bookshelves because foreclosure doesn't work well, in this market. That's me getting a bestselling author award in Times Square at the Hard Rock Café. I'm just winning that award, as you saw me holding there.

Folks, as I say, I've written a dozen books, but you know I've done a lot of different work with different people. I've been on the platform with people like Donald Trump and Robert Kiyosaki, Suzi Orman and Tony Robbins. You know, when you do things like that, pretty quick the newspapers and the press starts finding out that you're out there, too, so they love people that talk about making money and controversial things. So sure enough, I've been interviewed on CNN, CNBC, hundreds of radio stations and television stations across America, but you know what I really love to do is I love to teach people how to do this. And I've been involved in it for a number of years, and it's a business that is a great one because we can teach people how to do safe, secure investments.

The lessons in this book come directly from various live presentations I've given to investment groups that wanted to know more about Tax Lien Certificates and Tax Deeds from the Authority

####  

#  Why Should You Invest in Tax Lien Certificates?

The answer is... the investment I'm going to talk about will always go up. So hang in there with me because I know you're going to be suspect when I say something like that. But this investment always goes up, and here's why. Lesson #1. You'll want to write this one down, you invest with the government, and you're going to get a check back from the government. You'll get a profit check directly from the government.

We're going to talk about government Tax Lien Certificates. Certificates are available in every state, every county, and every municipality across this great country. The rates of return are absolutely phenomenal, but before we get to the rates of return, I want you to know this is the safest, it's the most lucrative investment in America.

Why? Because we're going to invest, and we'll our money back plus a profit from the government. That's going to make it very predictable, certain, and secure. So you're going to fall in love with this investment. We need to get into the rates of return that you're going to review, but first I want you to think about this. When you get involved in one of these investments, you're going to lock in your interest rate. It's not going to be like the banks or the stock market where the market goes up and down. This is going to be a locked-in interest rate. It could be as low as 16%. Could be all the way up to 36%. And the check is going to come from the government. So that was lesson #1: that you invest with the government and you get your money back plus a profit from the government.

When you buy a Tax Lien Certificate, what is it? It's just a piece of paper. It's like that 8-1/2 x 11 piece of paper that comes out of your printer next to your desk. It's just a piece of paper that the government issues when a property owner doesn't pay their tax. I can tell you, millions of people won't pay their tax this year. It doesn't matter whether they're in Colorado or Michigan or Boston or Philadelphia. Wherever they might be in this great country, people aren't paying their property taxes because they're going through a tough time. Now, this happens in good times and in bad. People don't pay their taxes. So the government will issue a certificate, and you can actually buy those certificates, I'll teach you how to do that as we go along, but the important thing for you to understand is when you buy that certificate, you now own the priority lien on that piece of real estate.

People that are in real estate are going to say, "Wait a minute, Ted! The first lien—the priority lien—is always going to be that first mortgage or deed of trust, depending on your state." Well, I'm here to tell you that if you checked the title of report, the first thing that will always be listed will be the taxes, you just bought the taxes, you now have a priority over the mortgage and you have a priority over any deed of trust. I'll come back and talk about that a little bit more, but just know that you have a nice safe, secure certificate, give me a moment. I'll give you all the details.

The brilliance of this business is, the tax collector does all the work, you didn't get in first lien position because you did anything, all you did is buy the certificate, and the tax collector automatically puts you in first lien position. You don't have to do anything. Folks, it's the law of the land. Anybody that buys a tax certificate now owns the first lien position on real estate. So this is a powerful investment.

I know you probably didn't hear about it from your banker or you probably didn't hear about it from you broker, but I'm going to tell you all about it and all the things that you need to know to profit and then I'll show you how to take advantage of the whole process.

####

OK, so you now own the first position lien on the real estate. So I don't know what state you're going to buy in, and I won't cover all the states, but I want to give you some representative ideas of what happens when you buy a certificate and what rates of return you can expect. I'm going to start out with the state of Arizona. If you bought a certificate today in Arizona—

The property owner doesn't pay their delinquent taxes for 1 year. In other words, you bought the certificate today and the certificate stayed outstanding for a year. The property owner didn't pay their tax. The owner would owe you at the end of the year everything that you invested plus 16%. Now, compare that with the Bank of America or Wells Fargo, whatever bank you might use. Banks are currently paying 1 or 2% interest. You'd be making 16% interest. So that's a pretty solid investment.

Let's take a look at some other states. Let's go to Illinois. Now, in Illinois, if you bought a certificate today, if it stayed outstanding for 6 months—the property owner owes the certificate holder 18% in just 6 months. Now there's a nice rate of return! Eighteen percent! But what if they didn't pay you on the 6th month and it went into the 7th, 8th, 9th, and out to the 12th? Well, in the next 6 months, you would earn another 18%! So now add it up. It's 36% interest rate in the state of Illinois annually.

I'm going to go through 4 or 5 of these states to give you the idea. We won't do all of them, but you'll certainly get a good flavor for it.

My favorite state is Georgia. The reason I like Georgia is, first of all, I live in Florida. So I come off the little island that I live on. I go over onto the interstate, and then I head north into Georgia. In Georgia, if I buy a certificate today and it stays outstanding (unpaid) until this day next year, well that property owner owes me, the certificate holder whatever was paid for that certificate—plus 20%. But now let's give this a little thought.

In Georgia, and in all states the government will allow that is, let you come in and pay your taxes any day. So those people that come in and pay their taxes after 30 days, they still have to pay me on that certificate I purchased. They have to pay me everything I invested plus 20%. The certificate holder, me, could make 20% in that 30 days

####

Well, folks, I'm here to tell you they have these auctions every single month in Georgia, so if you get paid off today, you can immediately buy another one of those certificates at the next auction, we'll talk a little bit more about that later on in this text. This is a real powerful investment strategy. Imagine yourself buying a certificate, getting paid, buying another certificate and getting paid...again.

Alright, now let's talk about Iowa, in the middle part of the country, ordinary people raise their hand, buy a certificate, then take the certificate home, some people put them in a safe deposit box. In Iowa, if you bought the certificate today, if the certificate stayed outstanding (unpaid) until this time next year, well then you would earn 24% on that certificate. However, if you bought the certificate today and they paid it off next month, you would earn 2% for this month and for every subsequent month that you owned it. So you earn 24% in Iowa, that's a really powerful rate of return!

Let's do one more. And let's go to Texas. Now in Texas, you raise your hand at the auction, you buy the certificate, and you take that certificate home. You just hold it. In Texas, what happens with that certificate is it only can stay outstanding (unpaid) for 180 days. And during that 180 days, you earn a 25% return. So any day that they come in and pay the property taxes in Texas, you get back all of your money. Let me say that again: You get back all of your money plus 25%. IT'S THE LAW!

Now, if on the 181st day they haven't paid you, then you're going to end up with a deed absolute, that means you're going to own the property. So for the first 180 days, they owe you 25%. If they don't pay you, you're going to get the property, either way you are a winner, 25% return or you get the property.

Now, in all cases, **if the property owner doesn't pay you, you'll get the property.**

Quick Review:

Rule #1:

We're going to invest with the government; we'll get a check back from the government.

Rule #2:

If the property owner doesn't pay you, you get the property.

Those are the only 2 rules you must remember about Tax Lien Certificates and Tax Deeds

#  The Tax Lien Certificate Process

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#  Tax Defaulted Auction Process

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#  My Favorite State For Investing

You've got the basics of it. Let's go back and look at Georgia. I said, Georgia is my favorite, and here's why. If I bought a certificate today and then the certificate stayed outstanding—in other words, they didn't pay their taxes until this time next year—well, on the 366th day, I could go ahead and foreclose. In other words, I could take the property. But I always tell my students—and I'm telling you the same thing—don't foreclose! Just let the certificate roll into the next year. When it rolls into the subsequent year, in the 2nd year you'll earn 30%. A Year after that, you'll earn 40%. And the year after that, you'll earn 50%. So don't be in a hurry to foreclose because you're going to get these generous rates of return.

Hopefully you've got the idea of what we're talking about, Tax Lien Certificates and Tax Deeds are available in all the states and counties and municipalities across America. There will be at least 2.5 million of those properties auctioned this year, so there's going to be plenty of opportunity for everybody to get involved. Let's take a look at the system and look at a graphic. There's a property valued of $250,000.

The taxes in this case are 1%. So that 1% is owed to the government. If the government doesn't get the money, now they've got a shortage, and we'll talk about that in a second. And what the government is going to do is they're going to sell a Tax Lien Certificate, that's you down on the bottom of the graphic, anybody can buy that certificate. You just pay the tax, and then that property owner owes you that money. If they don't pay you, you're going to end up with that property.

Let's take a closer look at this whole process, you may be wondering, who does this? Rich people have done it for decades. Why do rich people do this? Because they don't want to take risks, so they like to buy those certificates. If they don't get paid, they get the property. So rich people have been doing it for a long time. They're probably not telling you about Tax Lien Certificates and Tax Deeds. You're probably not going to get too many brokers or bankers telling you about it. Most people want to keep it to themselves.

If you buy one of these Tax Lien Certificates, the government gives you the right—now listen real close to what I'm going to say and read this slide real close—the government gives you the right to receive back your money. You get back all of your money and that high rate of return. If you don't get paid, you're going to get the property.

OK, so why is the government selling these certificates? Let's just talk about that briefly, there are going to be millions of these certificates sold. Property taxes are how local government pays all the government services. The people working at the county courthouse, they get paid by the taxpayers who pay their property tax. The property tax also pays for the police departments, the fire departments. It pays for all the schooling, pays for the libraries and the roads and all the things that we're accustomed to for government services, if the local government doesn't collect the property tax, they're not going to have funds and be able to pay for the police or the staff. You know, they could ultimately end up going broke if they didn't collect taxes. The local government simply sells a Tax Lien Certificate.

If they don't sell a Tax Lien Certificate, they're actually going to sell the property to get the money to pay those delinquent taxes. So this is a legislative system that's been around for over 100 years. Everybody that's reading this text should learn how to do this, and I'll show you the step-by-step process. In my learning materials I'm not only going to teach you how to do it; I'm going to prove that every step of it works so that you feel good and you can be knowledgeable when you finish, you can get involved with this later, I'll show you many ways that you can profit and do it very, very quickly.

I'm talking about a proven way for the government to quickly raise the money. They just have a tax auction, they're going to do that in about 5,000 different jurisdictions across this great country. So who does all the work? The beauty of this is you don't have to go out and do a lot of work. The government does all the work, and they can pay you up to 36% and that's going to depend upon which state that you buy. I'll cover that in just the next few minutes.

Why haven't you been aware before now? Well, probably your broker didn't tell you about it. Brokers are OK. What the broker really wants to do is sell you a high-tech stock or a penny stock or something like that because they're going to earn a high commission, brokers survive on commissions, the challenge with Tax Lien Certificates and Defaulted Tax Deeds is that government doesn't pay commissions so brokers aren't going to tell you about investments that don't pay the commissions.

#  Why Haven't I Heard Of This Before?

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How about your attorney? Did your attorney tell you about Tax Lien Certificates and Tax Deeds? Or your banker? They probably haven't told you because, they don't get any reward for doing that is why most people don't know about Tax Lien Certificates and Tax Deeds, yet these are very conservative certificates, and I can tell you research reveals, the biggest buyer of tax certificates is going to be the banks and the credit unions.

Banks are taking advantage of you! Actually, what's really happening is the banks have been doing this for decades. You see, what happens is you put your money in the bank, and they give you a nice generous 1%. You get 1%, and maybe your funds are in an IRA account or maybe it's in a 401K or maybe it's just in a savings account. What the banker can do with your money is the banks may go to any auction and purchase what they want and start buying Tax Lien Certificates. I researched this extensively and I found out that the banks are the biggest investors in Tax Lien Certificates. That's right.

So if you've got a 1% account with them, they might take that money and go out and buy those tax certificates. For example, say they purchased in Texas, they would earn 25% yet only pay you 1%. I hope you're getting the picture. Ask yourself, if the banks are doing this–shouldn't you be earning the same money the same way?

Together let's learn ways to get rich and let's learn how to do it with these Tax Lien Certificates and Tax Defaulted Deeds, we're going to learn how to make real money, that you get to keep. This is a very, very lucrative business. My first career was a pilot. I stopped flying airplanes when I found out how lucrative it was to be in business, these investments go up, not up and down like the stock market.

The banks are the biggest investors in these Tax Lien Certificates. It's been that way for years, but they just stay very low key they are pretty darn quiet about the process. Next, I am going to talk about IRA accounts and 401K accounts, just very briefly, because I want you to be able to do this program with tax-deductible money, and if you have your own IRA account, you can use tax-deductible money to buy these tax certificates. In just a few minutes I'm going to show you how powerful this is and how much money you can make. But, if you don't have an IRA account, I'll show you how to get one, it's relatively easy. I'm not in the business of doing that, but I am in the business of showing you how to make money so that you can have a nice financial future for yourself.

#  A Quick Review

You Have a 97% Assurance of Payment

IN FULL Or You Get the Real Estate

I haven't been to every county across this country, however, I've been to over 250 counties. When I go to the county offices, and I always ask questions of the tax collector, of the tax commissioners and the board of supervisors. I visit the treasurer and ask, "Look, if I send my clients to buy these certificates, are they going to get their money back?" And here's one note you want to write down. Every one of those officials tell me the same thing. Those county commissioners, tax collectors, they always say 95 to 97% of you will get all of your money back. I'll say that again, you'll get all your money back plus a high rate of return—95 to 97% of you will get the money back in 24 months! Now, that's a short-term investment!

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I know, a couple of you are saying to yourselves, "Well, wait a minute, Ted. What if I'm part of the 3% that don't get paid?" Folks, you pray you're part of the 3% because you remember there are only 2 rules.

In the Tax Lien Certificate and Tax Defaulted Deed business the first rule is you invest with the government, you get a check back from the government. Second rule is if you don't get paid, you get the property. So, if you're part of the 3%–that means you didn't get paid—you're going to get the property. And when you get the property, there's no mortgage.

Now, how would you like to have a property with no mortgage? You're all probably sitting in a house or an office or whatever. How would you like to own that with no mortgage? Well, of course you would! We'll talk more about that as we get more into this Start Up Guide.

The law is black and white on this subject; it's absolutely just like the picture graphic. You see it's black and white. You get paid, or you get the property. If you only made one note today, that's probably the one that you want to write down. You either get paid, or you get the property.

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#  How lucrative this can be for the "little guy"

Let me give you a couple of examples so that you can understand completely, and I'll make them super simple. I had a friend call me. His name is Dave. He is living in Phoenix.

He said, "Ted, I just put $2,000 in the bank."

I said, "Well, great, why did you do that?"

He said, "Ted, I'm 35. I want to retire when I'm 55."

I said, "Well, what are you going to do?"

He said, "Well, I put $2,000 in the bank, and the bank is going to pay me 3.75%. annually"

Now that's a pretty high interest rate today. He's going to get 3.75%. He's just going to leave it in the bank for the 20 years.

I said, "Well, let me see if I understand this. Two thousand in the bank. You're going to earn 3.75%, and then every year you're just going to renew that certificate and roll it over?"

He says, "You've got it right."

And I said, "Well, how much is $2,000 going to be worth in 20 years?"

He said, "Well, gee, I don't know."

I said, "alright, let's figure it out." So we put $2,000 in the calculator at 3.75. We figured what 1 year's interest happened to be, and then we rolled it over for 20 years.

I said, "Well, just take a look at this. It's going to be worth a whopping $4,129. I don't think that's going to be a very good retirement. As a matter of fact, it's probably going to give you about 2 tanks of gas the way the gas prices are going up nowadays. "

He said, "Well, what do you think I should do?"

I said, "Well, why don't you buy Arizona tax certificates?"

He said, "How much are they paying?"

I said, "They pay 16%. Let's put it in the calculator. Same $2,000 as you had before and now let's multiply by 16%."

He said, "Well, how much would that be worth in 20 years?"

I said, "Well, it won't be $4,129. It will be $30,000!"

Take a look at that, folks! It's the same $2,000 investment. I just used the rate of interest that's mandated by the government in Arizona.

## Don't Make These Deadly Mistakes!

I know what you guys are worried about. You're saying, "I'm worried about investments, I don't want to get my heart broken. I've done some of that. I know how badly I feel when I lose." Folks, this one is not going to let you down. I guarantee it's not going to let you down.

Let's do another. Let's go to Iowa. Iowa is 24%.

Let's take the same $2,000 that Dave invested and let's invest it at 24% and then every time those Tax Lien Certificates pay off—you remember, they pay off every couple years—so you just reinvest it.

He's going to take $2,000 one–time only, and he's just going to keep reinvesting it.

"Well, how much would $2,000 at 24% be in 20 years?"

Well, folks, get ready because that's a big number! –$120,000!

Now, I only invested the $2,000 once at 24%, and then I just keep reinvesting it and reinvesting it and reinvesting. He's got $120,000.

Here's the point I want to make. That's a great investment. We all agree on that. What if we had done that in an IRA—an individual retirement account?

You wouldn't even have to pay taxes on the profit. How would you like to get $120,000 in profit and not have to pay taxes? I hope you're starting to see this is all starting to go together pretty good.

## This is predictable, it's certain, and it's a secure investment.

Every one of you readers will want to get in on this investment. I'm telling you, this really works! Now, everybody qualifies for an IRA that has a small business, Uncle Sam allows at least a $2,000 tax deduction. Look, this isn't an IRA course, it's a Tax Lien Certificate and Tax Defaulted Deeds course, but I want you to think about that because you all qualify for those tax deductions. Some people get all the way up to $7,500 in tax deductions annually.

This is a course on Tax Lien Certificates and Tax Defaulted Deeds; I want you to make sure that when you make this money you know how to keep it! I can show you how to make money, that's not the problem. It's keeping it. Now, I'm sure you go through that on your checkbook every week trying to hold onto money, so I'm trying to show you how in a tax free environment, legally.

#  Case Study: Caryn Russell

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The counties around Caryn Russell's residence have dozens of Tax Defaulted Auctions. At a recent auction Karen purchased a bread & butter, single family residence in a good neighborhood for only $11,000 this was a livable home in a working class neighborhood. Almost immediately after her auction purchase she received an offer for $40,000. Nice deal!

Wisely, she turned down the offer of $40,000 because she determined by her estimate that the offer was too far below her estimate of $80,000 in value. There's more to this, than meets the eye. But first the important lesson, at the $11,000 purchase price she was paying approximately 25 cents on the dollar. Compare that with short sales or bank owned REO's at 50 cents on the dollar.

Karen rented the property for $750 a month, which is an annualized rate of return of $9,000. The math works out; $11,000 invested which earned $9,000 that equates to an 80% first year ROI. It wouldn't be difficult to estimate that her ROI will accelerate to 100% or more in the next few years. The point is, this is the perfect business for the little guy.

Alright, so let's continue on. I hope you guys are learning a lot and you're getting what I'm talking about. So there's that Iowa $2,000 investment at 24%, and all I did was reinvest the money every year. It was a one-time investment resulting in $120,000.

Folks, you could be making this kind of money. All you have to do is learn how to do it, and I have programs that will show you how to do that. And we'll get to that program after a little bit, but let's really learn what a lucrative investment this is for all of you to take advantage of.

The picture to below is "Hand Holding and Deal Making Accelerated Learning System"

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Now, let's just pause here for a moment because, you see, this is an accelerated, speed learning system that shows you how to do passive investments. You see, tax certificates are passive investments. Later on in the course, I'll show you how to do active investments, which means you're going to buy the real estate. Once you watch the DVDs and listen to the CDs, you're going to be able to go out and make deals. I have lots of things that I want to tell you about, but I want to get this right up front so you understand what this is about.

Folks, if you have this accelerated learning system; you could be buying Tax Lien Certificates and Tax Defaulted Deeds using your computer from your kitchen table. That's right. Within weeks you could be investing from home, buying passive Tax Lien Certificates and real estate at the tax defaulted auctions.

Visit : www.tedthomascashflowgenerator.com

Predictable, Certain, and Secure

Everything I'm discussing is predictable, it's certain, and it's secure. And you're starting to see that more than one person has recreated themselves financially doing this, and you'll be able to do the same thing.

#  How I Got Started...

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Let me give you a quickie backgrounder about how I got started. When I got started, they didn't have any computers to do the research and there were no books in the bookstore, As a matter of fact, there were very few classes, if any, on this subject. I started calling different counties around the country.

I'm going to take you on a little journey, and you'll see graphically and you'll learn a lot from this when I started, I just would pick up the phone and call the different counties and see what they paid. One of the counties I called happened to be Baltimore County, and that county pays 24%, on Tax Lien Certificates, that 24% interest really appealed to me. I wanted to make that kind of ROI (return on investment).

When I called Baltimore and I got a woman on the phone and I asked, "Do you sell Tax Lien Certificates?" She said, "Oh, yes." And I said, "What do they pay?" And she said, "Oh, 24%." And I said, "I'm interested in buying a few certificates. Do you have a list that I could look at?" And she said, "I'll send you a catalogue." And she did! She sent me a catalogue.

At first, when I got the catalogue, I was really surprised because in just one county, they had 9,127 certificates to auction! Wow! Can you imagine that many tax certificates? I could take all my friends and everybody I knew and we couldn't buy all of them at that auction sale. There were thousands of these to buy! Right then and there I realized that there was a gold mine out there and I was the prospector.

Next, I got on the phone and I started calling different counties. I decided I'd call Tampa, Florida. That happens to be Hillsborough County. And I called there and I got a woman on the phone. I said, "Listen, I'd like to buy some tax certificates, and what do you pay?" And she said, "Well, we pay 18% in Florida." And I said, "Great! Can I get a list of those?" And she said, "Oh, no, you can't have the list." And I said, "Well, why can't I have the list? Can't you just send it to me?" And she said, "Oh no, the list is much too big to send." I said, "Really? Well, how would I buy them if I don't have a list?" She said, "You have to call the newspaper."

I called the newspaper, and folks, I was shocked! Look at this newspaper! There are more than 40,000 tax certificates in that newspaper! Now, folks, you can't read the numbers on there, but I'll show you those in just a minute. Folks, if you look at the newspaper, there are no stories and there are no pictures in this newspaper. This is only a list of 40,000 Tax Lien Certificates. Every certificate has a starting bid of 18%. There's going to be enough for everybody, and this is happening in over 3,000 counties and another 1,400 municipalities all across the United States! So I said, "Holy Toledo! This is a really big deal!"

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Next I decided I was going to call other counties in the Northeast. I started in New York, and I said, "Do you sell Tax Certificates?" And they said, "No. We actually sell the delinquent property." And I said, "What does that mean?" They said, "If the property owner doesn't pay property taxes we sell the property, and when we sell it, there is no mortgage." I said, "What's the minimum bid price when I buy these defaulted properties?"

The answer was, the minimum bid price is the back taxes. I said, "Hold on, let me make sure I've got it. You mean I can buy a property for back taxes with no mortgage?" The official said, "Absolutely right." I said, "Well, I want to get a list of those."

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By mail, I did get some of those lists, so just take a look at the lists. This happens to be New York. Look at that! You can read that right on the front page. You see they even sent me the pictures of the properties—100 Montgomery County properties! Folks, it's staggering. It's just staggering.

All of those properties are going to be sold mortgage free. No mortgage, starting bid is the back taxes. Folks, if they send you a picture of the property, can you buy from a picture? That's a pretty good start, isn't it? Well, I started checking around different counties. Look at this county! It's just northwest of New York City by about 100 miles with 468 properties! The auction took 2 days. You can see for yourself—June 22 and June 23. Minimum bid is just the back taxes. Well, I knew I'd found a gold mine then, and this is the business that I was going to stay in.

I said to myself, "You know, I'd better check out California." So I called California. I got a grumpy guy in the treasurer's office, and I said, "Listen, I want to buy some tax certificates." And he said, "We don't sell Tax Certificates." I said, "Well, help me out a little bit. What do you do in California if they don't pay their property tax?" He said, "If they don't pay their tax, we auction the property off for the back taxes." I said, "Wait, let me make sure I understand. You're going to auction off those high-priced California properties for just the back taxes." He said, "You got it right, buddy."

I said, "One more question." He said, "What is it?" I said, "When you auction off the property, what happens to the mortgage?" He said, "The mortgage is wiped out." I said, "How can you wipe out the mortgage?" He said, "It's real easy. **It's the law in every county in America."**

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I said, "Holy cow! I want to get a list of those properties. Can you send me the list?" He said, "Sure. Send me $12." So I sent him the $12, and guess what? He sent me that list. Look at the size of that list! Its 2,000 properties just in Los Angeles! That's not all California! It's just Los Angeles County. I hope you're getting the idea of how lucrative this could be for you.

Now folks, I know you're saying, "Where am I going to get all these listings? How am I going to do all that?" So just take a look at this directory then and I'll show you. I'll tell you a little bit more about these, but I've got directories for every county in every state and every municipality in America. We teach you how to do it. We show you step by step, and we can access every property in the United States—every single one in every separate auction, from a laptop-sitting in your kitchen.

I'm not going to spend a lot of time on that now, but I'll come back to that later. You get the idea, but we have all of that in our database that we can pass on to you guys.

#  The Secret Stuff

Let's continue on. Now here's what one of those lists look like on the inside. You remember those big newspapers that I showed you? This is what a list looks like inside the newspaper the columns are detailed. You see, there's a property ID number there and then it shows you the tax due and then you can see the value of the property. No one else wants you to know this stuff, but let me just give you the inside stuff. Look at the property value, it's $400,000 and the tax due is $4,000. If you pay that tax and those people don't pay, what do you get? Remember rule #2: If they don't pay, you get the property.

Now look at item #2 on the list. It's #4255264, you can see that there. Look at the value of that property. It's one of those properties with $1,200,000 value. That means $12,000 in tax. If you pay that tax and those people don't pay you, you're going to get the property. It's a law. I didn't make the law, it's the law across America, no matter where you go.

## People say to me all the time: "Ted, is this safe? Is it as safe as the bank?"

Let's talk about the banks for a second, because banks are beautiful in America. Every dime you put in the bank is insured. It's insured by the Federal Deposit Insurance Corporation, if you put $25,000 in the bank and the bank closes up, no problem! You're going to get all your money back, you won't lose a dime because banks are insured by the FDIC.

Let's look at these Tax Lien Certificates. Let's say you bought four tax certificates and invested $25,000. This is the same list I just showed you, by the way. You see the $400,000, the $1.2 million, and the other $400,000? If you put $25,000 in Tax Lien Certificates and those people didn't pay you, what would you get? Well, you're not going to get your money back, folks.

What you're going to get is you're going to get $2.5 million worth of property–$2.5 million for $25,000! That looks like a good deal to me! I hope it looks good to you. You know, some people like their money in the bank, it's perfectly safe. I kind of like to have $2.5 million worth of property. Folks, this is probably the only business that you'll ever get into where you pray that the people don't pay! Yeah, you pray they don't pay so you can get the property!

The decision is going to be up to you. Now, everything I talked about is the law. I didn't make any of this stuff up. I've been teaching this for a couple of decades now, and people from all over America come to me and ask me for the answers to the questions about this, I'm here to tell you this is the kind of investing you want to do–where you can buy $2.5 million worth of property for $25,000, that's a pretty good deal! So we're basically buying properties for 3 to 10 cents on the dollar if owners default on property taxes, I'm going to show you how to do that as we go along here. I hope you're learning a lot!

Remember the first investment I talked about was a passive investment, when you buy a Tax Lien Certificate, there is no work to do. It's a passive investment. I know what some of you are thinking? You're saying, "Wait a minute, wait a minute, Ted! Do you think I've got $25,000 to invest? I don't have that much."

#  Getting Started for $500

Then I'll show you how to get in for $500? I'm going to show you both ways. We showed you $25,000 a minute ago. Let's get in for $500.

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Craig is a student of mine and I asked Craig to come and show me a couple of the Tax Defaulted Deeds he purchased, because if he just tells you that he bought them for pennies, you're probably not going to believe it. So I'm going to show you the actual deeds to the property that he bought, and you're going to see it and you're going to see what my friend Craig paid for it.

Here's the link to that video : www.youtube.com/TaxTed

Here's the video narrative if you're not close to a computer:

"So tell me what we're looking at here."

"OK, great. Here's an example of what I've done recently. This is 20 acres of land, and this is in Oklahoma. And you can see right here where I've paid. Tell me how much I paid."

"$41.20."

"$41.20 for 20 acres of land. This is my property, and I've just put it on the market for $1,000 an acre for $20,000."

"For $20,000? Unbelievable. But you don't have to be some kind of real estate genius or mathematical genius to do this."

"Not at all. In fact, you know, real estate people just really don't understand a lot of how this tax stuff works. You hear it and you think, 'Well, that's too good to be true.'"

"And you're glad to have them think that!"

"Oh, my God! Just keep on keeping on (laugh)!"

"What else have you got to show us here, Craig?"

"This is 40 acres of farmland."

"Wow!"

"Trees and rolling hills. This is how much I paid. How much did I pay for that one?"

"$60.37!"

"Is that incredible?"

"And how much are you putting that back out for sale?"

"I'll probably put this one up for $1,000 an acre. If you can read, you can do this."

"But this is the kind of guidance and instruction you're getting through Ted Thomas' program."

"I'll tell you, Ted will save people years of stumbling, probably 2 years to figure all this stuff out."

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Folks, how would you feel if you did a couple of deals like he just did? This is in your best interest; you've got to learn how to do this. Every one of you needs to learn how, it's a simple way to take care of your family.

I know you want to learn a lot and I want to teach you a lot, this is a program that if you pass it up, you're going to pass up a money future, this program is good in up markets, it's good in down markets. It doesn't matter what the market is, the Tax Defaulted Auction sales are always going to take place.

Let's do our quick comparison. Everybody wants to do comparisons between Tax Lien Certificates and banks. I'm not against doing things in the bank, but remember my friend Dave who was going to put $2,000 in the bank; he intended to invest at 3.75%. In 20 years he's got $4,129. I don't think that's a great investment, but it's safe and secure, he didn't have to worry about the money. But I suggested that he purchase in Iowa, invest and make 24% on his money and have $120,000 after 20 years.

#  3 Cents to 10 Cents on the Dollar

Let's learn more about how we're going to go through this process. But first, what happens if the property owner doesn't pay?

If you buy a tax certificate and they don't pay, you get the property free and clear of all liens and encumbrances. Think about where you're sitting right now, if you're sitting at home, would you like to have that home free and clear? Well, everyone would.

When you buy a Tax Defaulted Deeds, the mortgage is wiped out. When you end up with that certificate and you're going to end up with that property, the mortgage is wiped out.

That means you're going to own real estate for 3 to 10 cents on the dollar. Compare that with bank auctions. Compare that with short sales. Compare that with any kind of real estate. Three to 10 cents on the dollar! It just doesn't get any better than that!

That's as good as it's ever going to get in America! This is something, once you learn how to do it, you can do it for the rest of your life.

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#  A Trip With A Movie Star

I want to have a little fun with you now, this glamorous lady you see pictured here, I actually took her to a Tax Deed Auction. She's an entertainer who has no real estate or Tax Lien Certificate or Tax Deed experience. The next few minutes are critical, so if you'll watch the video and pay close attention, you're going to see what no one else is going to show you in a book. I've been doing this for 2 decades and I've been taking people to Tax Defaulted Auctions, and most of my competitors wouldn't even dream of doing such a thing. First, I'm going to show you how to make money, and then I'm going to prove to you that it works.

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I want you to meet Lynn Rose. You're going to see her live on video. I guided her and I advised her and I nurtured her through the process, and she had no experience at all. I'm just going to ask you to watch real closely because in the next few minutes, this is going to help you make a decision to get yourself involved and invested in this safe, secure program.

**My objective is:** I decided I want to show people how this works. I picked out a rural county out in the middle of Oklahoma. We traveled to Bartlesville, Oklahoma. When we got there I went through the county records together and we found the properties that were coming up for auction.

Before I did that I located this attractive, young lady and I told her I'd teach her what to do and I'll give her the money to bid. She assured me she had no business experience on buying Tax Lien Certificates or real estate. We visited the county records, we found the auction list, now I'm going to show you exactly what happened. Here on paper and on video, she's going to be pretty excited because I told her I would not only pay her, but if we got a property for 10 cents on the dollar or less, she would get to keep the property, so she's going to get pretty darn excited about this whole thing if she gets the property for less than 10 cents on the dollar. Heck! Who wouldn't like to own real estate for only 10 cents on the dollar.

We found an auction property, but let's go look and see if it's valuable before we bid, what she reported is written below. You're going to see the same thing by going to this video link: youtube.com/TaxAuctionTed

Here's what happened when we arrived at the property...

"I'm so excited! I found this property I love and I can't wait to bid on! It is a 2-acre wooded lot, as you can see, has a spectacular view of Bartlesville, the valley and downtown, and it is attached to a high-end subdivision that's gorgeous! Let's go look!"

Next, we're going to look at the subdivision neighborhood

"See, isn't it a gorgeous subdivision? I'm hoping to get that property at minimum bid, which is the back taxes, so I will own it with no mortgage! Now let's go to the auction and see if I can get it!"

I'm with my new best friend, and we're headed off to the auction. You're going to see it happen right in front of your eyes.

"Inside the courthouse, it's hectic and the auction is about to start. My plan is to bid on those properties that I picked out and researched the way Ted teaches."

This is what the county treasurer had to say!

"Next property: tax ID number 10773. This is tract 2 on Circle Mountain Estates.

Starting bid is $770.65. Is there a bid?

There is. I have a bid on the floor for $770.65.

Is there $1,000? $770.65 on the floor. Any other bids? Going once, going twice, sold! Your number, please."

My training has always focused on making people successful. My purpose really is to give you guidance and direction and a helping hand and show you safe, secure investments. Now, in my live seminars, which are really unusual because at the seminar you'll meet and you'll actually work with people who do what we teach. In other words, our teachers do what we actually do here. I call them visiting professors, and just like when I was at the Harvard Business School, we teach you how to do this with real case histories. Now, I've got to tell you, it's not always pretty, but it's the best way to learn how to do this and make your dreams come true.

####  

#  Perfect for the Beginning Investor

## There's Value In Residential Lots!

To the left is a picture of John Smith (his real name). John is a general contractor, the recent economy hasn't been very kind to this group of professionals. John researched in his local counties in Northern Florida (the Panhandle) and just like he learned in the workshop, he found many single family residential lots that investors bought on speculation that are now abandoned and have ended up on a tax defaulted auction list.

The properties first showed up at a Tax Lien Certificate Auctions, after no bids were received the county placed the properties on a delinquent property sale/auction. Many counties have a large inventory of these properties.

Nationwide small builders are suffering as their income shrinks their ability to pay taxes on vacant residential lots they've held for speculation and inventory becomes less and less. Nationwide you can expect to find thousands of these properties.

####

## Bottom Line

These residential lots are available, starting bid back taxes or very close to that minimum. At his first auction, John purchased a residential lot for the minimum bid of $25 over the treasurer's auction price. He immediately placed a small classified ad in the local newspaper ($100). The whole process resulted in 110% profit within 27 days of his purchase.

The transaction took place in the month of December which realtors will say it's impossible to sell. It's easy to sell when you use my Wal-Mart, buy low-sell low strategy. This property had an assessed value of $10,000.

What we want to talk about is you and making you successful. Let's show you some simple steps for getting those properties for 10 cents on the dollar.

Now, this is again where you might want to be writing some notes, so let me give you 4 steps to owning real estate for 10 cents on the dollar. Four steps here. All you have to do is write them down and then you'll have them.

This is what I call an active investment; you remember the other investment was a Tax Lien Certificate -That's passive investment (no work.) But with the Tax Deeds, when you buy deeds you go to the auction—sale

#  Getting Started

First thing you do is you get the list. That's #1.

#2: You want to drive by and check it out.

#3: And then you want to evaluate the property and make sure it has value like we did with Lynn. We checked to make sure that it was a nice lot and it was a good area, resalable.

####

#4: Then you want to bid at the auction. Now, your objective here is to buy them 10, 20 cents on the dollar. You don't want to go in there and spend 50 cents because you won't be able to get rid of them for 50 cents, we buy them for 10 and 20 cents.

You ultimately want to sell the property. So I call this an active investment because you want to sell the property. We're probably one of the only training facilities that really teach you and spend a lot of time on teaching people how to sell these properties.

## Buy low, sell low- A Wal-Mart Strategy

The process is: try to buy at the auction for 10 cents, maybe 20 cents on the dollar.

Now, if you're going to get it for 10 or 20 cents on the dollar, ask yourself: Is that better than the short sales that you hear about so much on the Internet? Is that better than bank auctions?

You can easily make that decision because at Tax Deed auctions you're buying for bargain prices. There are thousands and thousands of these properties. This year, governments are going to conduct 2,500,000 auctions. I wouldn't be a bit surprised if it was 3 million this year, across America, sometimes it's residential land, sometimes small lots, sometimes it's timber, sometimes it's ranches.

#  Case Study: SIngle Mom

I taught a single mom and I'm going to tell you her story. I thought I'd ask you a question, which you can give me an answer in your head if you like, on a webinar we use the chat box to communicate. I'd like to show you a real deal, and I'm going to do it right here with this example.

A real deal where someone makes 350% profit.

That's right—350% profit!

####

So let me walk you through this because this woman is going to buy property for pennies on the dollar and I can teach you to do the same. I think you're going to find this interesting, and it's going to be real easy to learn.

She was a single mother, and her 2 daughters are pictured here, she is putting them through college and she is very concerned if she is going to have enough money to pay all the expenses. So just like all the doubters when they first hear about this, they say, "Oh, it sounds too good to be true." She is skeptical and fearful. So what I did with her is I actually taught her how to do this on paper first.

I said, "Why don't we teach you how to do this by teaching you how to paper trade. In other words, learn how to do it on paper and then go practice it on paper, make sure it's going to work so that you don't have to worry about money." She did that, she practiced numerous times and when she felt good about it, she went ahead and got started.

You can do the same thing. You could practice first, and make sure you're not going to spend any money or take any risk. Once she learned how to do it, it was like a big burden was lifted off her shoulders; what assured her that she was going to be OK is she practiced the paper trading before she put up money.

I want you to understand most people don't know what we're going to talk about right now; I'm going to talk about SURPLUS LANDS. Folks, these are properties that are leftovers, in other words, the auction took place and nobody bid.

Let me say that again. The auction took place, and nobody bid. Now these properties are classified by the government as surplus lands. That means there is going to be no competitive bidding.

How would you like to buy with no competitive bidding? The county sells the property over the counter for just the back taxes. The starting bid is the back taxes. That means—and this is the beauty of it—that you have got time. You've got time before you buy to go and check comparables and evaluate and figure out how to sell. You can figure out all that before you get to the county to purchase.

Let's see how she's going to make this 350% on her money. Everything that I'm teaching you, I taught to her. So if she can do it with no experience, believe me, you can do the same thing. What you're going to see next is the picture of the property she bought. You can see she had a purchase price of $4,196, so that's not a big investment.

Let's look at what she got, that's not a great-looking property, but what she did right away was she put a classified ad in the newspaper for a guy to fix it up. She's not going to do any of this fixer-upper work herself. I don't like to do that. This is just an ROI business. You put your money out, and then you get someone else to do the other work. She hired an outsider to complete the fix up. As soon as they cleaned it up and fixed it up, she decided to get it sold. She sold it for $39,900. Now, add a few costs in there, I brought her along on video so that you could meet her.

Watch Her Video Here: www.tedthomascashflowgenerator.com

If you're not close to a computer, here's what she said:

"By May of this year, we sold this house for $39,900. He put—not me, because I told him I wasn't fixing it--$15,000 into, which he got that. So we made basically $19,900 on this house. (Clapping from audience on tape.)"

Wow, $19,900 on a $4,000 investment! Folks, I don't know where you are, but that's a pretty good rate of return. You don't have to do that too many times. She didn't have to worry about those college tuitions or any of that anymore.

Folks, think about what we're talking about here. Is this a little different than what other people are doing? Yeah, it's quite a bit different. If you're going to get rich, you're going to have to be different than the other people. I'm offering you a new way to start your investment life over, and if you want to be in real estate, this is the real estate part of it. We talked earlier about the Tax Lien Certificates and tax defaulted auction deeds, both of these are profit makers—and the brilliance of this is, you can do this for the rest of your life once you learn how to do it!

Now, I have a requirement from the Federal Trade Commission that requires that I disclose, so let me make sure that I've done that and have been clear and transparent. She paid $4,196 for that house. Houses in your community could sell for less or they could sell for more, but the FTC—the Federal Trade Commission—requires that I tell you that you could lose money on this investment or any investment I tell you about.

Now folks, if you don't want to lose money, just go check it out before you spend money. Don't buy anything that you know you can't sell quickly, and you're not going to get in trouble that way. But I'm required to disclose all that, I can't guarantee profit and just like that Viagra ad, they are required to disclose a lot of things and I'm just disclosing it all to you now.

#  The $100,000 Mistake You Don't Want To Make

NOTE: Names and places have been modified to protect the guilty

Most people don't know the rules; I hope you aren't one of them...

The United States is a big place and during the past 200 years it's been divided and cut up, mapped, divided into states, counties, municipalities. In our workshop/seminars, visiting professor Robert Schumacher actually gives a class on how to navigate the auction and staff member Keri Goff gives a class on how to find property on the internet.

She teaches classmates how to navigate the internet, locate and appraise Tax Lien Certificate and Tax Deed properties. What I'm leading up to is the systems of mapping and the rules of how the county auctions properties are all public domain information, in all more than 3,000 counties and more than 1,400 municipalities. The information is all archived at TedThomas.com website and in the success club archive and library. It's all free.

It's important to understand the United States is divided into more than 3,000 counties and auction bidders are required to know the rules for the auction and in the county they bid. It's really easy but requires a little effort. Certainly, the process has changed dramatically over the past 200 years.

At this point in history, it's important that you as an investor and entrepreneur understand that each county has its own government. The point I want to make clear is that each county makes its own rules, has its own administrative government, has its own statues, its own police, its own fire departments, and a whole bunch of bureaucrats. If you get what I'm saying you may profit greatly because if you'll take the time to research, physically at the public records office or over the internet, you won't make this $100,000 mistake. I'm about to tell you an interesting story.

Recently in a county just North of Orlando, I attended a Tax Defaulted property auction. The auction was attended by 37 other bidders and observers. This particular county auctions Tax Defaulted properties at least one, sometimes twice a month.

Faces of many of the bidders were familiar to me, as I had seen them at this county auction and other local auctions previously. At this particular auction bidders singled out what they felt was the most profitable property to be auctioned. It was easy to determine without talking to the competitive bidders to know which property they wanted.

Here's how it went, the first 30 properties to be auctioned only received two bidders from the audience, and 28 of those properties had no bids. It was quiet, it was boring, and that is until a large home in an upscale subdivision with a value in the year 2008 of $700,000 and a new assessed value - 2011 of $450,000. When this property entered the auction processes the whole room of 35 plus individuals simultaneously started yelling bids.

FYI, auctions in this county all start at the defaulted back taxes, and go up, my point is: this could be a gold mine for a bidder that's successful.

The first bid was $48,000, then $50,000, quickly to $65,000. A tall man in the front row yelled $100,000. The auction moved quickly to $125,000 and prices rose to $200,000.

At $210,000 the room quieted down to only three big boys, these were the serious bidders with strong voices and deep pockets. The room was filled with tension, no one was moving, and the five foot female auctioneer was cool and calm but you could feel the pressure as the bids went to $225,000.

Then someone who was obviously out of money bid $226,000, everyone laughed and a back of the room voice said $230,000. That was challenged by $240,000, and that was challenged by $245,000 within seconds. Now it was down to two players. Cool as cucumbers $250,000 then $255,000-there was a pause, the female county employee auctioneer said," going once, going twice" and the next bid was $260,000 and then it was bid up to $265,000, then there was silence, a long silence.

Ten seconds seemed like ten minutes, "going once, going twice, sold to the man in the back of the room for $265,000". The auctioneer asked the man to come forward with at least 5% of the bid price to secure the property (which Florida Law requires). From the back wall steps a man with a briefcase, walks to the auctioneer, puts down the briefcase and says "I'll pay the whole amount right now" the auctioneer and her assistant laid out the papers and a receipt. Next the auctioneer said, "Okay I need to see your identification" the room was silent; when the winning bidder said "I don't have any identification" everyone in the room was stunned. The auctioneer said, "I can't let the transaction be completed without proper identification, it's the rules"

Folks keep in mind this is a property valued at approximately $450,000 with free and clear title. The auction wiped out a $500,000 mortgage and a $47,500 tax bill...a year's pay is on the line.

The bidder has no identification, the losing bidder who knows the rules stands up and says "I get the property the bidder is not qualified" suddenly, a man in the audience says, "he can use my identification" and the auctioneer says "okay, come up here" the losing bidder, still on his feet says "wait" in a loud voice, "you are not following the statute...the rules."

The auctioneer freezes and then says "I do this all the time" in an irritable voice. The losing bidder says "I don't care what you do all the time, you're not following the rules!!" from here on it's a shouting match and no one is backing down. Finally the auctioneer says "are you challenging this sale?" the losing bidder says "yes", the auctioneer tries to recover by saying "I'll get the county attorney", the competitive guy says, "Good, tell the county attorney to bring the statute book", from that point on, things got ugly.

This is a much longer story that got very ugly and to save face, after much shouting and trips back and forth between the auctioneer and the county attorney, lots of yelling in the room, two very upset bidders, 30 plus astonished observers all went home disappointed, the county attorney cancelled the auction.

## What's the lesson?

Know the rules, $100,000 profit walked away because the bidder didn't know the rules. These opportunities don't come every day. The county cancelled the auction and two bidders went home very unhappy and the auctioneer will have a black eye for a long, long time. I started this letter by saying there's more than 3,000 counties, more than 1,400 municipalities, each has their own rules: it's not that difficult.

Here's a few people who know the rules, they all act/perform as visiting professors at my Auction Preparation Workshops, they all live in the real world of auctions and buying and selling Tax Liens and Tax deeds. These are real players that are street smart and capable and able to teach, guide, and nurture you to success.

####

Now, what about the wealthy people? What are they doing? Are they buying these fixer-upper houses? Not as much as entrepreneurs and handy people. What the wealthy people like to do is they like to buy those Tax Lien Certificates. Why? Because they are predictable, they're certain, and secure. And then if they don't get paid, they'll take the property. But the wealthy people are after those 16%, 18%, 24%—they want those up to 36% returns.

If you buy a tax certificate and the property owner doesn't pay you, you win the lottery! That's right. You end up with the house. IT'S THE LAW IN EVERY STATE.

With your permission, I'll take you on another journey with a man that made the same kind of huge profits.

####

Readers should keep in mind you are reading transcripts from presentations in front of a large audience and webinar presentations. The information and graphics are real world and the people—case studies are just like you-average Americans.

Get this right and your competitors will beg for mercy

Let me ask you the question this way. How would you like to see a deal where a young man bought a house for less than 7 cents on the dollar? How many would like to do that? I tell you what. Type in the chat box: Ted, show me the deal! Just go ahead and type it in there. That's how we communicate when this is live.

####

I'm going to take you on a little journey with a man who is now a friend. His name is Danny, he was a late starter. Folks, we all know that the money isn't going to fall out of the sky, what we need is a process. I taught Danny the process. I'm going to be able to teach you the same process, and you'll be able to do this. I've guided thousands before you, this is a step-by-step process, if you can read and write, then you'll be successful, I'm going to give you a road map to follow, once you've got a road map, it will be like a blueprint.

If you want to travel to a strange city, you get your GPS or you map your trip to the destination. That's what this course is all about.

Before I explain this particular one case study, I want you to know this works in every state, and I know you want to make money quickly. This usually takes about 3 to 4 weeks to learn and get started. Let's show you some pretty powerful returns, then you'll be encouraged to get involved yourself.

Danny was a late starter. By that I mean, in his first 40 years he didn't do very much. I know there are a lot of people that are just like Danny that, we both know, they just don't get started till late. The first time I met Danny, I really liked him. He's the kind of guy that he probably should be the president of a social club or something. He's really like a social butterfly. He knows everybody, he's got a huge group of friends, many of them he had known since high school.

The problem was now he turned 40 and guess what, all his friends were buying nice new houses and they were buying new cars, and what really got him motivated is, he lived in Ohio and his friends were getting in their new cars and driving down to Florida for the winter to get away from those cold Ohio winters. Danny was still back there driving around in his 10-year-old used car.

Danny was getting frustrated. He lost his confidence watching everyone else succeed. He didn't have college on his agenda, so he knew he needed to do something to make more money. So he got involved and once he got involved he made a couple of serious mistakes.

One of the first mistakes he made—and it happens to people all the time—while he was studying the materials and learning how to do this, he started bragging to his friends that he found this new way to make some pretty serious money in his local area. He was bragging about that he was going to get wealthy. His friends weren't quite as excited about it as he was and they teased him and they humiliated him and told him he was never going to—be wealthy.

In other words, they criticized him a lot. I know some people get criticized at home. Folks, you've got to hang in there. If you're going to transform your life, you've got to hang in there. I don't want you to take abuse, but you're going to have to do something if you're going to change and get into making real money like these people do it. Danny changed, and he decided he wasn't going to drive that 10-year-old car anymore.

Unfortunately—or I should say fortunately—the criticism motivated him, and he got out and started doing something. He really shocked his friends. I'm going to show you. He really shocked his friends when he started buying auction houses for less than 10 cents on the dollar.

I want to show you a couple of examples. As you watch and learn from the example, just think of the satisfaction that he had of telling his friends about that big money that started rolling into his checking account. I want to be transparent and disclose everything here.

This story did not have a happy ending right away because, as I told you, this guy is a social butterfly, always having a lot of fun. Didn't want to put a lot of work in, he showed up at the auctions late, he missed the great deals. He didn't plan his strategy for bidding. He didn't do any of that stuff.

He didn't do very well, but his friends, they just kept criticizing him and telling him he was a loser, and he didn't like that, but he kept at it. He really ended up getting traumatized, and when he told me the story, I felt sorry for him. You probably will, too. He showed up at a family reunion and he's sitting at the dinner table, a short distance from his brother-in-law. His brother-in-law, who had no respect for him at all, did just about the unthinkable at a family reunion dinner table. His brother-in-law turned to him and said, "You know, Danny, you are right where you deserve to be in life, and you'll be living in a 1-bedroom apartment your whole life." He didn't use a nice tone of voice, he was loud and really putting Danny down. Danny said he was humiliated. He started to sweat. He got upset. And he said everybody at the dinner table just went silent because everyone thought there was going to be a big fist fight. He said it was absolutely silent. He said his body turned all sweaty. He said it was his personal low point in his life.

But, you know, that low point made him transform his life, he was so embarrassed he didn't get up and get in a fight. He just made up his mind right then and there that he was going to show his brother-in-law. I'm proud of this guy as a student, but watch what happens. He's going to show his brother-in-law, and I'm going to show you exactly what he did.

Now, this is the first property he sent me a picture of. It's in Ohio. This is a single family home. It works like this, In Ohio, if the property owner doesn't pay the tax, the tax collector doesn't do anything the first year. They just send a bill and say you owe the tax and you owe a penalty. In the second year, they do the same thing. They send a bill and a penalty. And then the third year, they say, "Look, here's the bill for the first year, the second year, and the third year and the penalties, and you have to pay by a certain date. If you don't pay, we're going to auction the house to collect the delinquent taxes owed." And that's exactly what they did. They auctioned the house for the back taxes and penalties.

Danny headed down to the auction, and we practiced a little bit before he went and he bought that house for the minimum bid. The other people at the auction, they didn't know what was going on because they had no training. They had no practice in bidding. So when the auctioneer said, "Does anybody have the minimum bid," he said "yes", he had the minimum bid, he bought that property for just the minimum bid? Take a look at that!

Now, folks, here's what you should be thinking about. First of all, he made a great deal, so a big congratulations for that, but how long does it take you to earn the difference between those 2 numbers? How long does it take you to earn that money? Wow! How long would it take you to save that kind of money?

The beauty of this whole thing is that Danny lives in Ohio and there are 88 counties in Ohio. So that means there are at least 88 auctions. I'll just show you one more. You can imagine what fun he had with his brother-in-law when he showed him that.

That's the first one he bought. Now here's the second one. I'm showing you bread-and-butter property. And that's what you're going to find at these auctions. Once in a while, a big mansion is going to come up, but you're probably not going to get that. These are the ones where we love to do business. This one he did even better, and I told you I'd get you one under 10 cents on the dollar. Take a look at this! Wow! Look at that! He bought that house for $1,900. Look at the assessed value, one deal like that creates a flood of money into your check book.

You know, here's the thing that I always say to people. You like to make money, but could you make this much money working at your job? How many deals like that this year would you have to do? I mean, that created a flood of money into his checking account.

I thought you'd like to meet him, but before we meet him, let's look at what he did. This is what he got involved in. This is the home study course that he invested in, and you see it's a Fast Start to Making Money with Tax Lien Certificates and Mortgage-Free Tax Deeds.

It has a price of $497 and it comes with manuals and DVDs, but it also comes with the Hand-Holding and Deal-Making set that I mentioned earlier. Remember, we talked about being about to buy online and being able to research online?

Well, that's that hand holding, speed learning, accelerated learning. Now, those 2 added together are $1,087. Don't worry about the money right now because we're going to talk about giving you guys a great deal before we finish here, so hang in here for me for a little bit and let's learn a little bit more about this and then we'll get to the nitty gritty of getting you involved in a program just like this.

His investment was $1,087, and I brought him along on video.

Watch His Video Here: www.tedthomascashflowgenerator.com

While you're watching the video, think to yourself: Did he get his money's worth out of that $1,000 he invested?

This is the narrative if you don't have a computer to watch:

"Danny, how many properties do you own now?"

"I'm holding around 50, 55 properties. Right in there."

"I see. And do you have mortgages on those properties, or have you paid for those outright?"

"Very few with buying all the tax sales that I've done since 1990. I've bought them for pennies on the dollar, so I really haven't went in and mortgaged them."

"So you don't have to work again?"

"I wouldn't have to, I guess you could say. I could just stay in the house, but I'm not that type of person. When you know this is out there, you're not going to quit."

"So you're just as eager now as you—"

"Oh, I'm just as motivated as ever."

"OK, now you're kind of a big guy doing this, but what would a little guy who only had a couple of thousand bucks do? Could he do that?" "Well, I think you just interviewed Craig, and he bought one for $17.70, so a $20 deal could get you in this industry."

"Unbelievable!"

"It really is, but—"

"How come nobody does it?"

"No knowledge. Probably don't have your books and tapes!"

"That was a good thing to say (laugh)!"

What do you think about that one? Would you like to buy a property and be able to get it for 10 cents on the dollar? Because I have lots and lots of those that I can show and you can learn from, but here's a guy that started out and he was just having fun for the first 40 years of his life. Then all of a sudden he said, "I'm going to start making some money now."

I know there are a lot of you out there that have made a lot of money over the years, but this economy has taken a lot of it back, so let's get you back on track and making money again. This is a way to do it! Keep in mind, what we're talking about here is we're talking about a system that is predictable, that's going to be certain, and that's going to be secure. Once you learn how to do this, you can do this in every state in America, and I'll show you how you can do it in the state you're in and other states if you want to do that.

Now, folks, I've figured out all the methods, and you can see that I'm kind of passing them on to you in this fast start system, so I'll give you everything that you need. But I know what you're after. You want a new lifestyle and you want to have some more wealth and security in your life.

And for some of you—and I admire you for doing it—you have kids you want to get through college or maybe you want to buy some new cars and things like that. This lifestyle is available to all of you, and the money is there to do it. You just have to learn a systematic way to make money, and that's basically what we're talking about with this system.

#  Case Study: Florida Woman Loses $104,766 At Tax Auction

...I Hope You're Not Making This Mistake

It's astonishing to observe people at tax auctions, the majority are uneducated investors who have many wrong ideas and mostly false ideas about why and how the local government conducts tax auctions, and the government processes at the auction to make it fair to everyone. Most importantly people don't understand the transfer of funds and the effect the rules have at the auction.

In the past decade I've written home study courses, special reports and auction manuals and most recently I conducted a 12 hour webinar all about tax certificate liens and deeds. The object and the goal of the study materials was to educate the public. Readers who want to earn extra money and I know that's most of you will find a little education and doing your homework will keep this opportunity from getting away from you.

## The more you learn the more you earn

It's not just a trite saying. From a selfish point of view I'm always promoting, advertising and encouraging clients to get educated. Surprisingly, the response from many clients is: maybe later, it's too expensive or I don't have time... Folks, I agree training and educating are expensive but what is the alternative? Do you plan to spend the rest of your live being frustrated because gas prices are soaring, food cost are rising weekly and there is a real estate value crisis and mortgage meltdown? I'm sure you get the idea. It makes sense to me to learn how to make real dollars, to do so it might require an investment in a "How To" training program. Ask yourself who benefits from this training and for how long.

More than once this type of investment in learning materials has allowed me to make an extra $50,000 or more in a few months following the training. Here's the hard part, new training added a huge time commitment and I had to learn new duties and add more schedules to my overburdened day as I implemented the new craft. However, because I learned a new craft I don't have worries about my future and suddenly my retirement account looks a lot better, and for you it might be college expenses would be paid for a son or daughter or maybe a new car, the big plus is I can take advantage of the newly found knowledge and make money again and again.

"The Lady in The Red Dress"

This is a painful unforgettable story it happens all the time across America.

## The Courthouse Steps

Standing on the Courthouse Steps with about 12 to 15 other auction bidders, I was astonished to watch as an amateur bidder managed to lose over $100,000 because she didn't read the auction rules.

## Here's A Little Background

The county advertised approximately 30 properties at this auction. Many caught my eye, however, one was outstanding. was a condominium, on the 9th floor level with views of the Intracoastal Waterway and the Atlantic Ocean in Daytona Beach, Florida. From the outside, it was a 10 on a scale of 10. The complex was part of a gated community and I couldn't look at the inside of the dwelling, the security guards were grumpy.

## Every Jurisdiction Is Unique...

In English, I'm saying that each of the 3,000 plus counties that make up this Great Country have their own rules. Local comparable houses were in the $200,000 range. The building, which was more than 10 stories, had units for sale at $250,000 and up. Sounds good doesn't it? It was and the minimum bid was $13,500. I'm a cheap skate, so I prepared to bid a little over 20% of the $200,000 to $250,000 value. I took $60,000 in cashier's checks to the auction. The bidding was fast, going up from the minimum bid of $13,500 quickly it was $15,000 then $20,000, $22,000, $25,000, $40,000 and up to $55,000. Finally, I was out at $60,000. A bidder next to me bid $63,000. Another competitive bidder upped the bid to $65,000.

## Going Once, Going Twice, Going Three Times, To the Woman in the Red Dress.

It was fair and everyone was happy until the auctioneer said, "Will the woman in the red dress please bring up your $200 cash deposit to secure your bid?" That caused a stir as the woman emptied her purse on the courthouse steps trying to find $200. Try to visualize getting a $200,000 condo on the water for only $65,000.

I watched in amazement as the lady in the red dress asked each bidder if she could borrow $200 cash. It was agonizing to watch as she received small thumbs down from each bidder. The auctioneer waited until the painful process was completed and started the auction over on the same property. The man next to me beat me again he bought the property for $64,000.

## What's The Lesson?

Know The Rules!

I don't make the rules and lots of people tell me they are unfair. What can I say? You'll never make much money unless you adapt and play the game the way it's outlined. I'm not bringing you a social message. I am telling you, don't be emptying your pockets on the courthouse steps and missing a good $100,000 profit. This stuff happens.

I didn't approach the lady in the red dress and tell her I have a webinar and Group Coaching class that would teach her all the steps so she could come back next time and make money. She stormed off to her car and insisted the auctioneer didn't have a mother. Interesting her lack of knowledge made the auctioneer who is a county employee into a "B_ _ _ _ _ _".

## My point is it's an investment in yourself and your future.

What about you? Are you saving time and money by not investing in your future? The lady in red by my calculation could have made a small investment of less than 3% or 4% and made herself over $100,000.

I watch people all the time and I never know which ones are going to do it because I always think, "Well, here's a person that's going to charge right into this." But if you have that chat box in front of you, well, you ask yourself: Can you do this?

Well, I'm going to tell you, you can do this. In the chat box, I want you to answer my question. My question is this: Would you like me to show you how to buy a property for under $4,000 that you could live in, has good schools, and is in a good neighborhood? And how to do it for under $4,000. Now, I know a lot of you are interested in it. A lot of you would like to make so much money that you could give it to the people you love. I know that. You'd like to be able to give it to the people you love. Well, I'd like to show you how to do that, but let's see what happened to this woman, OK?

Now, she started out as a grown woman and she wanted to get involved in Tax Lien Certificates, because she had already tried many get rich quick programs that she purchased on the internet. The house that you're looking at on this page is a paid for house in California. It's paid for, and it was paid for with money earned from tax liens and Tax Deeds. In the next few minutes, I'm going to take you on a journey that Janice made. Before I do that, Janice came to me to learn about Tax Lien Certificates, and when she learned about it, she said, "Wow! I want to go to Michigan and buy those!"

At that time, those Tax Lien Certificates paid 15% in the first year and 50% in the second year. And I said, "Wow! Why don't you just stay in California and do it and just buy houses for back taxes?" She said, "No, I want to go to Michigan." So she did exactly that.

She headed off to Michigan. Now, this is a person that had a good job. Problem was, she was putting in 110% every day and she was getting a little tired. She had been to the doctor a few times, and the doctor had said, "Look, you've got to find some less stressful work." But she knew if she lost that job, she wasn't going to be able to retire, so her whole motivation is make enough money to retire. That's what she's after, she wants to make enough money to retire and live comfortably. So she was pretty tired of investments that weren't secure. She wanted to do something predictable.

Earlier, we talked about Tax Lien Certificates. You invest with the government, you get a check back from the government. Some of you have been through this big crash in the real estate market, so let's start you out conservatively and let's show you what she did. This could be perfect for you.

Janice headed off to Michigan, you're going to like this story. It has a real happy ending, but it really has some twists and turns on the way to getting there. She traveled by airplane and she proceeded to baggage claim to pick up her luggage. Turns out that the airline lost her bags, if you've ever had that happen, you know how inconvenient it is. Oh, boy! Now you don't have your personal items. You don't have the clean clothes that are nice and pressed that you want to wear and whatever. Anyway, the next day the airline called her and say, "Come pick up your bag." They found it.

Janice arrives to the airport to get her bags. When she returns to the parking lot she finds the rental car she has been using has been stolen from the parking lot. The rental car wasn't the problem, the problem was her briefcase was in the back seat, and it had all the cashier's checks to buy at the auction. The good news is, she called the bank and they canceled the cashier's checks. The bad news is how is she going to go to the auction? She doesn't have money to bid, this is a determined woman. So she flew all the way back to California. I mean, she is determined. She flew back to California and she went to the bank, and she got new checks, and then she flew back to Michigan.

On the way back, she had a connecting flight and there was a lot of weather and the flights were delayed, and she missed the connection. From the connecting airport she had to drive 150 miles all the way to the auction.

Afterwards I said," Not many people would stay with it like you did." She said, "But, you know, life's challenges are life's challenges. Everybody has them. But she said, "This is a safe, secure system, and now that I found something that's going to work, I wanted to work it. I wasn't going to let it get away."

She's determined to retire. Now let's watch what happens. Follow along on this story because every one of you could be doing the same thing that you're going to see here. She is going to buy Tax Lien Certificates. There's the certificate she bought (picture below.) She invested $422. Now, folks, you've all blown that much money on a weekend at a big fancy family dinner.

Now, I think we all learned this at the same time earlier in the book. We learned that if you buy a tax certificate and the people don't pay the certificate, you end up with what? Well, the right answer is, you end up with the property. Well, pretty quick she's on the phone to me. She said, "Ted, Ted!" I said, "What?" She said, "The property owner didn't pay me the money!" I said, "Congratulations!"

Well, folks, she didn't get paid but she got the property. And there's the property she wanted. Folks, how many of you would like to have that house way under the $4,000 I talked about in a nice neighborhood, and that's what she bought, with nice schools and whatever. She said, "Ted, what should I do?" I said, "Sell it!" She said, "How do I do that?" I said, "Get a broker." She said, "Where would I find a broker?" I told her they were all hidden in the telephone book. So she got a broker and she sold it. Now, how many checks like that do you need in a life? I mean, what is that going to do? What would you guys do with that? You can type it in the chat box if you want. Buy a new car? Buy your wife some new furniture? Send some kids to school? That's a pretty good looking check, folks, and what would you do with it? It's going to be up to you.

## Janice's Property in Warren, Michigan

Purchased For $422.00

Sold For $64,928.08

Profit $64,506.08

You know, we're getting a lot of answers in the chat box on that one! OK. Alright.

Well, so she sold it. Here is what she had to say:

Ted: "Now when you sold it, how much did you sell it for?"

Janice: "$65,000."

Ted: "65,000?!"

Janice: "That's right."

Ted: "Really?"

Janice: "That's right."

Ted: "Did you get a check or something like that?"

Janice: "Here it is right here!"

Ted: "Wow! Look at that! $64,928.08!"

Janice: "That's right!"

Ted: "Now, what happened to your life when that came?"

Janice: "Oh, it was wonderful! I had been working as a court reporter for 20 years, and it meant I could retire and now I live a stress–less life and things are looking up. It's absolutely wonderful."

Ted: "Wow! So things changed a lot just because of tax liens deals."

Janice: "Wonderful. It's just wonderful!"

Ted: "What would you tell a person that was interested in just learning about this? Now, of course, I'm in the business of teaching people how to do it. I'm kind of a television educator or something like that. What would you tell people to do?"

Janice: "OK. I can understand some of being scared, OK? But you're not going to lose your money because you're dealing with a county that by law, if you buy a tax lien, you're going to get your money back. So you're not gambling other investments, OK? You are going to get your money back, which is, for me, important."

Ted: "Yeah."

Janice: "Alright, I don't have money to lose. Nobody does. And who knows? You might win the lottery and get a house!"

Well, folks, how would you like to make a couple of deals like that? I know everyone of you would like to do at least a couple of deals like that.

So, well, she was a pretty happy person, as you can imagine, but let's show you what she got involved in. This is the home study course that I showed you before, and she invested $1,087, but you know, I'm not going to charge you guys $1,087. Let's make you guys the deal of the century! How about $1.20 a day? Would that be pretty good? Your investment is only $497 to get involved in that.

But, you know, I'm not going to stop there because what I want you to do is I want you to be successful. I have a lot of reasons for that, which I'm going to explain to you in just a minute.

I'm going to make each of you that gets involved today an honorary member in my Success Club. Now what does that mean to you? Well, there's a big benefit. That means you're going to receive an extra $1,040 worth of valuable learning capsules that will accelerate your training. I'm talking about really accelerate.

#  Case Study: Single Mother Raising a Handicap Son Goes From Zero to $125,000 in 13 Months

This adult woman knows the pain of losing all her money in the real estate crash of 2009-2010. To recover, she learned about how lucrative tax lien certificates and tax deeds could really be. Learning was step one, action was step two.

Here's Puff's story in her own words...

"This is the best time to be using Ted's system, in these horrible economic times with all the foreclosures and all the things that are happening with people, I bought more properties than I thought possible. "

"In my first year I bought 7 different properties, I sold them and made over $125,000. I mean is that amazing for someone who had no experience at this, didn't know anything, I didn't even know what a tax deed was."

"I bought this home at a tax auction. I paid a little over fifty four hundred dollars, and I sold it less than a month later for seventy five thousand dollars, I made a $70,000 profit, and these people got a house for $50,000 less than all the other houses in the neighborhood were selling for."

"Is that amazing or what?

I bought an office condo."

"I bought a lot."

"I bought a boat slip for yachts."

"I made money, they got a great deal, and I love Ted.

His system is the best."

Suddenly, an avalanche of money filled her check book.

Over $125,000 in profits in 13 months.

She bought a single family home, and resold.

She bought a residential lot.

She bought a boat slip at auction.

She bought a used mobile home.

She bought a few Junker houses.

Most importantly, she sold stuff. The brilliance of this business is, once you learn how to do it, it's available for the rest of your life.

#  Tax Lien Certificate States and Rates

  * Alabama : 12%

  * Arizona : 16%

  * Colorado : 9% (Fed Funds Rate)

  * Florida : 18%

  * Illinois : 24% & 36%

  * Iowa : 24%

  * Indiana Up to : 25%

  * Kentucky : 12%

  * Louisiana : 17%

  * Maryland : 6% to 24%

  * Massachusetts : 16%

  * Mississippi : 18%

  * Montana : 10%

  * Nebraska : 14%

  * New Jersey : 18%

  * New York : 14%

  * Ohio : 18% (Institutional Investors Only – Sold in Bulk)

  * South Carolina : 8% to 12%

  * Vermont : 12%

  * Washington DC : 18%

  * West Virginia : 12%

  * Wyoming : 18%

#  Tax Deed States

  * Alaska

  * Arkansas

  * California

  * Connecticut (Penalty State)

  * Delaware (Penalty State)

  * Georgia (Penalty State)

  * Hawaii (Penalty State)

  * Idaho

  * Kansas

  * Maine

  * Michigan

  * Missouri

  * Nevada (Hybrid State)

  * New Hampshire

  * New Mexico

  * New York (Hybrid State)

  * North Carolina

  * North Dakota

  * Ohio- Deeds open to public

  * Oklahoma

  * Oregon

  * Pennsylvania

  * Rhode Island (Penalty State)

  * South Dakota

  * Tennessee

  * Texas (Penalty State)

  * Utah

  * Virginia

  * Washington

  * Wisconsin

#  Frequently Asked Questions and Vital Answers

### Question: Is it better to buy improved property or vacant land?

Improved property has the advantage of quick re-sale in many cases. Addition- ally, improved property will often have mortgage liens. Mortgage holders rarely let properties go to tax sale. Properties with mortgage liens almost always assure you of re-payment of your investment.

### Question: I want to get a property for sure, not just a tax lien certificate.

That's possible—but highly unlikely. Specialists find that certificate holders get the property in only 1% to 5% of all tax lien sales. We will cover this process in a later chapter in this book.

### Question: Is the process of purchasing Tax Lien Certificates the same in all states and counties?

No, each state and county uses its own rules. The state legislatures write the statutes. However, they are subject to local (county and municipal) interpretation. Tax lien buyers should research each county before purchasing their tax lien certificate, and should become aware of the local rules.

### Question: What happens if the property owner does not pay next year's taxes when they are due?

You, the previous year's certificate holder, can buy the subsequent year if the property owner does not. This is like buying another safe high yielding C.D.

### Question: What if I don't want to buy more than a one-year certificate?

You aren't required to pay more than one year's taxes. However, it would probably be wise to note when the next payment is due and pay those taxes also. You'll get your money back when the certificate is redeemed, plus an exceptional rate of return. If you can't pay the subsequent tax lien, the county will issue a new certificate that they will sell at auction.

### Question: Is there any way to forecast when a certificate will be paid (redeemed)?

No! That's why you should buy more than one lien certificate. Different certificates will pay off at different times.

### Question: Can I buy before the auction-sale?

In some counties, leftover or unbid certificates will be available before the auction-sale.

### Question: Can I lose money buying tax lien certificates?

It's possible to lose money in any investment anywhere and anytime. All investments have some risk, even certificates of deposit. However, as a rule, tax lien certificates are considered very safe investments.

### Who can buy a tax lien certificate?

Anyone who has the cash to pay the auctioneer

### Will I be evicting someone from their house?

No, you are only paying that property owner's delinquent taxes. You are not foreclosing on them.

### Will I own the property at some future date?

Possibly, although it's rare for a property owner to forfeit their real estate. In Rrizona, for example, 99% of all property owners pay (redeem) the taxes due to the county. The county in turn pays you interest plus a high rate of return. nationwide, 95% of all tax lien certificated sold are paid (redeemed) by the property owner.

### What if I end up with the real estate? What do I own?

Here is how the process works. The county will publish a tax lien sale in the newspaper and public records. Buyer/bidders should research the public records (plot maps, assessment parcel and subdivision maps). The buyer/bidder should also purchase local maps and drive by the subject properties. The drive-by inspection would provide additional appraisal data. Title companies and appraisers, and real estate agents will provide more in-depth information.

### What happens to the certificate when I buy it? (DO I take it home?)

Yes, you can assign or transfer the certificated to anyone you want.

### Are the certificates transferable?

Yes, you can assign or transfer the certificates to anyone you want.

### Are the properties always improved?

No. The properties could be vacant land or improved property. Often large commercial properties are available in the tax lien sale.

### When do I get paid?

When the county or municipality collects from the property owner, they will notify you. Upon receipt of your certificate they will pay you.

### How will I know what I'm buying?

First, you are not buying real estate? You are purchasing a lien on the real estate. Should you ultimately foreclose and get the property, then you own real estate.

### Why don't people pay their taxes?

  1. People die and no one pays the tax, though heirs may pay the taxes later.

  2. People run out of money—they become unemployed and have money problems.

  3. Some people won't part with their money until the last minute. They are making more by investing elsewhere.

### Isn't the county or municipality required or obligated to find the property owner?

Not exactly. They send multiple notices via mail and put announcements in the public records and the newspapers. That's all they are required to do.

What if the property owner dies?

The county will forward tax notices to the last-known address. Additionally they will advertise the tax sale. Often, heirs or family members step forward to pay the taxes.

How many tax liens can I acquire?

There's no restriction. You can bid and purchase as many as your finances will allow.

Whom do I pay?

You will give your money to a government agency—there are no brokers or intermediaries to pay.

Who will pay me my return?

The property owner pays you when they pay their delinquent taxes. The government agency (the county or municipality that collected money from you) will contact you and ask you to return your tax lien certificate. Upon receipt they will send you a government check.

Will I have to contact the homeowners at any time?

No! You only do business with the government agency.

Will I have to foreclose on the property?

Statistically there is less than a 5% chance that you'll ever go through the foreclosure process. An attorney or government employee would do this service for a small fee as it is all controlled by the statutes of the state involved.

#  Message from the Publisher

If you read the book your head is filled with new ideas, opinions and facts that will make you a lot richer in the near future. If you haven't read the book, before you do - start with the video below...

#  Secrets Video

This instructional video is easy to watch, it's entertaining and filled with good information that's worth your time.

Just go to: www.tedthomascashflowgenerator.com The brilliance of this process is revealed on the video and you'll learn how you can start immediately earning Government checks of 16%, 18%, up to 36% interest. It's all measurable and accountable.

## On the video - - you'll see

When you invest in Tax Lien Certificates if you don't get paid, you get the property – with NO mortgage. That sounds unbelievable doesn't it?? It's the law in every state and county. My point is you have a 97% assurance that you'll get paid and make a profit.

This book and video combination will give you a competitive advantage. The law is: you get paid all your money back plus a profit or you get the property.

There's enough for everybody. It's been forecast that this year over 3,000,000 (that's million) properties are scheduled for Tax Defaulted Auctions. You can start with $100 and grow as big as you want... Maybe a small fortune!!

The video at www.tedthomascashflowgenerator.com explains the details.

