Velocity of Money in Cash & Terms Sales (CFFL 497)

Velocity of Money in Cash & Terms Sales (CFFL 497) Transcript: Jack Butala: Jack Butala with Jill DeWitt Jill DeWitt: Howdy. Jack Butala: Welcome to our show today. In this episode, Jill and I talk about the velocity of money. Jill DeWitt: Okay. You are in big trouble now, mister. Jack Butala: I can't even get through the title. Jill DeWitt: Sorry. Go ahead. Jack Butala: The velocity of money and cash in term sales. Jill DeWitt: Okay. Jack Butala: I was avoiding my ... I was avoiding being scolded. Jill DeWitt: I just caught on from yesterday. You said yesterday the next show would not involve math. This is sounding like math. Jack Butala: It is. I'll try to make it interesting. That's the reason that we have you on the show, Jill, is so that you'll lighten everything up and make it interesting because if I just sit here, it's going to be like- Jill DeWitt: Could you imagine? Jack Butala: It's going to be like Ferris Bueller. Jill DeWitt: Wha, wha, wha, wha. What would the show be like all by yourself? Jack Butala: Anyone? Bueller? Jill DeWitt: All right. We'll make it good. Jack Butala: Right. Before we get into this, let's take a question posted by one of our members on the landinvestors.com online community. It's free. Jill DeWitt: All right. Jim asked, "I purchased a property in Archuleta County, Colorado, from a gentleman who acquired it through a tax lien situation. He provided me a warranty deed to convey the property to me, and a copy of the treasurer's deed he received when he acquired the property." This is sounding perfect right here. Jack Butala: This is a beautiful story so far. Jill DeWitt: This is perfect. Yeah. "I'm taking care of the filing and conveying the property to me. The question I have to do is do I need to file the treasurer's deed as well, or only the warranty deed? I thought it's just the warranty deed, but I want to check and be sure. Any help would be appreciated." Jack Butala: Go ahead, Jill. Jill DeWitt: You are correct, Jim, because the treasurer would have already recorded the deed. If you're not sure, look at it. Make sure there's a date, a page, and a stamp from the recorder on the treasurer's deed. It would be a fluke, freak, weird thing if there wasn't, but I'm sure there was. The treasurer would have recorded the deed themselves when they conveyed it to this gentleman. Now, your deed is the only one that needs to go in, so it's perfect. Jack Butala: Here's how a treasurer's deed gets generated. Somebody stops paying their taxes, and in this case, after a while time goes on. The taxing authority issues a lien on the property that says, "Hey, we're going to take your property if you don't pay these taxes. Now, you have a couple choices. You can pay the taxes or you can continue to blow us off. If you continue to blow us off, we're going to open this lien to be purchased by somebody, and they can foreclose on your property, and then they can own it. You can choose to pay, or you're going to lose your property." Every state's different. Every county's different, but those are the two things that happen. In this case, the guy is probably dead. Most tax liens are because people died, and their estate just doesn't care. Somebody purchased a tax lien and they went through the foreclosure process. A long time ago, a treasurer would do the deed for you. They would literally go through the whole process and the foreclosure. It's called an administrative foreclosure. They would issue you the deed when they were done. They would put notices in the newspaper and the whole thing. At the end of that, they issue a deed from the treasurer. That's why it's called a treasurer's deed. Really, in effect, what they did was quiet title the property for you for very little money. They don't do that much anymore because it's too expensive. The lawyers caught on and found out that it exposes them, and that there's all kinds of issues. Now,