1. AMERICA’S GREATEST REAL ESTATE TRAINING The James Smith Training Organization Adverse Possession Turn a $ 1 Investment into $ 5 Million Net Worth Within Five Years Even If You Have ▪ No Job ▪ No Money ▪ No Credit ▪ No Experience Gary A. Barnes, MBA Instructor gary@opmmentoring.com opmmentoring.com/gmbc/files

2. How would you like to acquire a house with... - Adverse Possession - No qualifying ! No down payment ! No monthly payment ! No back payments to catch up ! No loan to pay back – ever ! With almost Immediate, Positive Cash-Flow ! It’s a FREE house (well... almost)

3. - Abandoned Property - Locate a property that appears to be abandoned. Note the address, OR... Note the number of lots from the corner and the intersection streets.

4. - County Assessor’s Office - Look up the property’s ownership. Information is stored 4 different ways... Alphabetically by owner’s Last Name (Alpha File) Street Address of the property Parcel Number A code number assigned to each piece of property in the count. Sometimes it’s called the “Assessor’s Parcel Number,” “APN,” or “AN.” Lot and Block Numbers To be used if there is no physical address

5. – County Assessor’s Office - Identify the individual, if any, who is currently paying the property taxes.

6. – County Recorder’s Office - Look up the Grantor / Grantee Index... This is a alphabetical file Search for foreclosures, probate proceedings, liens, taxes, etc. Information in this file will be referenced by a Book and Page Number This search will show you the name of the Owner-of-Record, and lien information.

7. - NOTICE - What you are about to learn is NOT legal advise, and may not comply with laws of your state. Check with a qualified real estate attorney in your area to learn the laws pertaining to Adverse Possession in your state. The material presented here is for educational purposes only. Before attempting to use any of this information you are directed to consult competent legal counsel. For your first property, work closely with a competent real estate attorney, then simply copy his paperwork for subsequent deals.

8. Step # 1 – Serve Constructive Notice - You must establish a public date upon which you started the Adverse Possession process. Quitclaim Deed Memorandum of Adverse Possession Newspaper Notice (save a copy of the newspaper as proof of your public claim). “Possession Held Either Under a Claim Of Right or Color of Title. Has intent, as evidenced by his objective acts of ownership, to claim the title to the property and hold it against the world.”

9. – Quitclaim Deed - Have someone Quitclaim Deed the property to you. They do not need to be the owner. Anyone can do it. You could Quitclaim Deed it to your LLC. Record the Quitclaim Deed to establish a date you began the process.

11. Memorandum of Adverse Possession Let all interested parties know that on July 6, 2009, I, Gary Barnes, began the process of claiming the property located at 123 Maple Street, Provo, Utah, under the law of adverse possession as described in the Revised Statutes of the State of Utah 1234-56789. The property, legally described as: Lot 4, Block 5, Daybreak Subdivision... Etc.

12. – Newspaper Ad - Sample Newspaper Ad For information regarding the property that I am occupying at 123 Maple Street, Provo, UT, call 555-5555.

13. Step # 2 - Use the Property - “Actual, Open, And Notorious Occupation of the Premises in Such a Manner as to Constitute Reasonable Notice to the Record Owner.” Your use of the property must be such that a reasonable person viewing it would know that the occupant claimed some title or interest in it. Clean it up Make improvements Maintain it Put in a tenant (renter) Place a sign in the front yard Take pictures every 6 months of you holding newspaper with date showing. Sample Yard Sign For information regarding this property please call: 555-5555

14. - Caution - Rarely will you find a property that has a mortgage. The mortgage companies usually foreclose before the property hits this stage. If you do find one, NEVER charge rent and not make the mortgage payments. That is called “Skimming” and is criminal. Either bring the back payments current and reinstate the loan, or work with the bank to complete a short- sale.

15. Step # 3 Act as the Owner “Occupation Both Exclusive and Hostile to the Title of the True Owner. Must not admit or recognize title of another. If claimant actually occupies the property claimed under “Claim Of Right”, he may perfect his prescriptive title even though his claim of ownership is not in good faith and he knows he does not own the property until expiration of the prescriptive period.” (“Hostile” is a legal word meaning, “Without the owner’s consent.” If the owner grants you permission to be there, then you cannot proceed.) If anyone asks if you are the new owner, say “Yes.” Do not strike any bargains or deals with the true owner. Bar the true owner from the property. (Do not allow anyone claiming to be the owner to enter the property. Doing so will require that you start your time period all over again.) Force true owner to prove ownership.

16. Step # 4 Long-Term Possession “Possession is Uninterrupted and Continues for at Least Five Years.” You must use the property, rent it out, maintain it, etc. for a minimum of five consecutive years. The exact amount of time will vary from state to state, so be sure to check your state laws. www.law.jrank.org/pages/11865/Adverse-Possession.html Scroll down for a state-by-state listing of holding time and other requirements.

17. Step # 5 Pay the Property Taxes “Pay All Taxes Assessed During the Five-Year Period.” If there are any delinquent taxes from prior years, you must bring them current. You must keep all taxes current during the years of your prescriptive years (will vary from five to twenty years, depending upon your state.

18. Step # 6 Obtain “Quiet Title” After completing steps 1-5 and maintaining it for the required prescriptive period of time for your state, have your real estate attorney petition the state to grant you legal title (“Quiet Title”) to the property. You will need to provide documentation to all of the above for the five required years (or whatever the period of time established by your state laws). Once granted, you will receive a “Judicial Determination of Adverse Possession” which can be recorded like a deed, and which will all you to obtain title insurance should you decide to sell.

19. How to Find Abandoned Properties There are lots of ways of finding abandoned properties. Be creative and see what you come up with.

20. Find out when your county schedules Property Tax Sales. Not Tax Liens, but Tax Deed Sales. Get a list of the properties to be sold. Identify the ones you are interested in. Contact the owners Most will tell you they have the situation under control. Some will be highly motivated to sell (make a good deal to buy) Some of the owners cannot be found ! If you can’t find them, then neither can the tax collector. Method # 1 County Tax Auctions

21. Searching for the Owners Check the phone book Check county records for other properties owned Check voter registration Check the Internet Check probate records Check bankruptcy court records Check criminal index at the courthouse Check the Health Department, list of deceased Talk with the neighbors Send a letter “Address Correction Requested” Hire a Skip Tracer (about $50) Keep a log of all your contact attempts so that you can prove to a judge your honest efforts to contact the real owner.

22. Pay the Tax If you are satisfied that you cannot find the owner then pay the property tax. Pay the tax after noon on the day before the tax sale. This will withdraw the property from the sale. You just acquired the property for the cost of the taxes, rather than having it bid up by other investors at the auction.

23. Search Previous Years Tax Records You can also check county records for properties delinquent in property taxes that are not sufficiently delinquent to go to the tax auction. Try contacting these owners as above, searching for the abandoned ones.

24. Method # 2 Drive Around Drive through neighborhoods and search for properties that appear run-down. Ask mail carriers for addresses of abandoned properties.

25. Method # 3 County Tax Assessor Check the County Tax Assessor’s Index of Owners (alpha) file under the letter “U”, for “Unknown Owner.”

26. What If the Owner Shows Up ? First of all, make him/her prove ownership Try to buy the property at a bargain price As a safeguard you can file a complaint with the city for any city violations; such as uncut grass, open doors (child safety hazard), etc. The city will post a Warning notice on the property. Then if the owner should show up you have grounds to sue him to recoup your costs.

27. Now you have a new tool to use, which most of your competition is unaware of, granting you an advantageous position in your market.