The Last Great Real Estate Secret - Part 1 Part 1 - Part 4
Believe It!
When we tell people that there really is real estate just waiting to be taken for little or nothing, most just don't believe it. I suppose we might have felt the same way if this idea had been sprung on us in one great burst – as it is here – but we discovered these remarkable opportunities one by one over a period of years. Now it is your turn. Keep an open mind while we save you years of effort and reveal the secret of free and almost free real estate.
Please understand that what we are presenting here has nothing to do with some old, worn out myths about getting free property. Our plan has nothing to do with "free government land", mining claims or homesteading. Those are dreams from another era.
Much of the western United States was settled by "homesteading". That was a process where citizens could claim government owned land by occupying and improving it. The Homestead Act of 1862 was repealed in the 1970s.
Homesteading in that manner is no longer possible in the US or Alaska. There are some state land programs in Alaska, but they are not "give-aways". Most of the land that is worth anything is either extremely remote or there is overwhelming competition for it.
What you will learn in these pages is entirely different and absolutely legitimate.
Everyone who has an interest in real estate investing is aware of the "no money down" concepts that have been promoted over the years. It’s not easy, but it can be done. What would be better than no money down? That’s easy. No money down and no payments – ever! Yes we said free real estate – no money down and no payments. This manual will explain exactly how you can get free real estate and almost free real estate. It is all based on the power given you by a law called adverse possession.
Bad Example
Before we get into the details we are going to present a bad example! Yes, we are going to show you an example of how a husband and wife obtained free real estate, but it is not the way you will do it. If it is bad why tell you about it? Because it was in the news not long ago and you or someone you know may remember reading about it.
This information comes from a New Jersey Supreme Court decision. We will call the couple involved the Adams.
The Adams owned their own home. Next door was a vacant lot. The city owned the lot. The city had acquired the lot for unpaid property taxes. It was in a residential area and the city did nothing with the lot. It just sat there.
For over 20 years the Adams used this city lot. They fenced it, built a barbecue and paved a portion to use for parking their cars.
After using the lot for all those years they started a legal action that would give them title to the lot. This action is called an Adverse Possession lawsuit.
The city attorney fought the suit. One of his key defenses was that the Adams had not paid any property taxes on the lot during the twenty years they used it. (As you will learn in a moment, paying property taxes is one of the requirements for most successful adverse possession projects.)
There were a couple of other legal issues in this particular case, but they do not concern us.
What was the out come of this case? The court allowed the Adams to acquire title to the property by means of adverse possession with one condition. They would be required to pay all of the property taxes due.
The Adams had successfully used adverse possession to get free real estate. Taxes on an unimproved lot are very low, so even back taxes did not amount to much when compared to the true market value of the lot. Another consideration in this example is that the lot they now own was right next to their home. They doubled the size of the land they owned thus raising by a considerable amount the value of their home.
Now this is a bad example because you will seldom (if ever) be interested in beginning adverse possession on government owned land. In many states it is not possible. And you will seldom want to spend twenty years acquiring land. In fact, in many cases it will take just a few weeks to have money flowing into your pocket if you follow the plan being presented in these pages.
Even though this example is not a good one, it proves that average, everyday people like us really can get free real estate! Once you learn this system of using adverse possession you will begin to recognize how you can put this wonderful law to work for your own benefit.
Over the years we have revealed the system you are about to learn to a select group of people. The feedback we have gotten from them indicates that they have acquired farmland, homes and recreational property using adverse possession. They have done this with success in various areas of the U.S. Adverse possession laws have been on the books for hundreds of years, but only a very few wise people have discovered the law and taken the time to learn how to use it. Now you can join that group.
The first thing we must do is plow through some details you will have to understand before you can get to work finding property.
Part 2
Identifying Ownership
As you begin your search for property that you can claim you must be able to learn all you can about any property that interests you. Your primary concern is who is the owner – and where is he? Here is how you gather that information.
Much of the information you will need can be found in the office of the County Property Tax Assessor. This office might be called by another name in your county, but it will be very similar. This is the office that keeps track of who is paying the property taxes (or should be paying them) on each parcel of real estate in that county.
In the records of this office you can find information on every parcel of property in the county. It is usually on microfiche film or in computer files. Sometimes there may be books of computer printed pages.
Every county in the United States maintains these property records. They all detail the same type of information for all of the property in their county. There may be minor differences in coding and the form in which the information is cataloged and maintained, but once you have learned one system you can quickly understand any other.
COUNTY ASSESSOR
The information you find in this office is indexed three different ways:
1. Alphabetically by owners last name (Alpha file).
2. The street address of the property.
3. By Parcel Number, a code number assigned to each piece of property in the county. It is often called the "Assessor’s Parcel Number" or AN.
These are public records. Anyone can visit the Assessor’s Office and study them. You will use these records often, so take the time to become very familiar with them.
Don’t be afraid to ask questions of the clerks working in these offices. They are city employees and are there to serve you. These are often low paying, repetitious jobs and you may find some of the clerks not as helpful as you might wish. Remember that they have been asked the same questions a million times and aren’t excited about answering them again. Always be pleasant with them. Smile and find something nice to say about them. This will make the day easier for both of you.
With these indexes you can begin gathering information about any property in the county. If you have the street address you can use the address index to look up the property and find the name of the owner.
If you have someone’s name and you want to learn if they own property in the county, you can check the Alpha file and find a list of all real estate that person owns in that county. As you might guess the Alpha file is arranged alphabetically by the last name of the property owners.
You will sometimes use the AN (Assessor’s Property Number) file to lead you to one of the other indexes.
What if, while driving, you find a property and there is no street number visible? The Assessor’s office will have a "lot and block" map for all areas of the county. Let’s say the property is six lots from a corner lot. Write that fact down along with the names of the streets near that lot. With that information you can find the proper map in the lot and block book. There you can count six lots from the corner to find the one you are interested in. On that lot there will be the AN. Then you can go to the AN index and find what you need to know about the property. This is especially useful when you are searching for rural or other undeveloped property.
If the above sounds complicated it is only because it is hard to describe without actually seeing the lot and block maps. Once you use them you will readily understand how they work.
In addition to the name of the owner and the address of the property the indexes will often list other information, such as:
1. Date the property was purchase by current owner.
2. Zoning code.
3. Assessed value of property.
4. Property tax.
5. Name of prior owner.
6. AN number.
If the owner does not live at the subject property one of the indexes will usually list the address where the tax bill is sent. This often is the owner’s residence or business address.
The information you find in these indexes can be some months old. There is usually an additional index that is updated almost daily to reflect property sales that are occurring every week or so. This index may have property arranged by AN number. Always get the AN number from either the owner index or the address index and check for any recent ownership changes.
Sometimes a clerk has computer access to even more current information. Updated information that has been reported to the Assessor in the last day or two. Always ask one of the clerks if they have more recent information than is available in the pubic access files. You won’t need this every time you are doing research. Just on those properties you are ready to move on. Then you will want the most recent information possible.
COUNTY RECORDER
After you finish in the Assessor’s Office move to the County Recorder’s Office. The most current information concerning changes in ownership will be found here. Every document that is recorded in the county can be found here. That includes, mortgages, trust deeds, judgments, name changes and many other legal events.
Here you find the Grantor/Grantee index. It may have another name in your county, but it is a master index of every document that has been recorded in that county.
This is where you find if there has been a change in ownership since the date the Assessor compiled the information in the Assessor’s indexes. With the Grantor/Grantee index you can also learn if the property has been sold at a foreclosure sale or if the currently listed owner has died there may be a probate action filed.
This index may be divided into groups of years. Documents that were recorded from 1979 through 1983, 1948 through 1988, year-to-date or monthly – right up to what was recorded yesterday.
This master index is alphabetical. You found the owner’s name at the Assessor’s office now find that name in the Grantor/Grantee index. This will tell you if any deeds concerning him and the property have been recorded during the time period covered by the index you are searching. Your primary interest will be the period that comes after the date the Assessor’s files were compiled right up to the present date. This will reveal any late changes.
This master index may be a bit confusing at first. Ask a clerk to explain the details and you will quickly get the hang of it.
Remember that "ee" at the end of a word (grantee, mortgagee) means that is the person who is getting something – like a piece of property (he is receiving title).
On the other hand "or" at the end of a word (grantor or mortgagor) means that is the person who is giving something. He may be giving title to the buyer of his property. It can also mean he is giving a security interest in his property in exchange for something.
Example: The mortgagor is giving a promissory note and mortgage/trust deed (security interest) in exchange for cash (loan).
You may also find that other documents have been recorded involving the person you are investigating, such as probate actions, judgment liens, tax liens, etc.
The documents that are listed in the Grantor/Grantee index have all been recorded. They have been scanned or a picture has been taken of them and they have become a permanent part of the county records. They are available for public inspection forever more.
You will usually find the documents on microfilm or a computer database. Each index entry will be accompanied by a code number or "book and page number".
These will lead you to the reel of micro film or computer file where the full text of the documents can be found. Ask a clerk for help. Here again, it is easy after you have done it once or twice.
The Assessor’s records and the County Recorder’s records are important sources of information in your quest for free real estate. You will soon be very comfortable using their facilities. Yes, it does sound complicated as you read it, but it will soon become second nature to you. You will also find this knowledge to be helpful in other areas of your life. You will always know where to look for information on any property or any person.
Lets recap where to find information you will need.
The County Assessor’s Office
1. Owner’s names.
2. Property addresses.
3. Assessor’s parcel number.
4. Tax rate.
The County Recorder’s Office
1. Mortgage and Trust Deed records (ownership changes).
2. Other recorded legal actions.
Now you understand the tools that are available to you for researching property. Next you'll learn what to do with them.
Part 3
The Secret!
Adverse Possession – that is the secret! That is the power of law you will put into action. Adverse possession is how you obtain ownership of real estate without the obligation of buying it from an owner. This wonderful law allows an alert person to fill the void left by a missing or disinterested owner. It is NOT stealing. By rescuing abandoned property you are performing a service for society (and yourself).
Abandoned property becomes a blight on the community. It can become a haven for derelicts, a rendezvous for drug dealing, a danger to children, a fire hazard, an eyesore that drags down surrounding property values. It generates no property taxes so it becomes a financial burden on the entire community. Without adverse possession laws this property would continue to be a problem for city and county.
The requirements of adverse possession are simple, but they must be adhered too exactly. The authors do not intend, nor are they qualified to give legal advice. In these pages we are relating what we have learned through our own efforts. You must take responsibility for any action you take in this area.
The following five requirements of adverse possession will apply in most states, but you must confirm that they apply in yours. Do some research in your county’s law library. Any questions should be directed to a good real estate attorney in your area. This document and accompanying materials are designed to provide authoritative information in regard to the subject matter covered in it. It is for illustration purposes only and presented with the understanding that the author and publisher are not engaged in rendering legal, accounting or other professional opinions. If legal advice or other expert assistance is required, the services of a competent professional should be sought. |
