John Beck's Free & Clear RE System??? - Posted by Dave-PA

Posted by Joe Kaiser on February 25, 2007 at 22:39:29:

Our sales wipe out everything.

I once duked it out with a real estate attorney at a tax sale who thought
his “constructive easement” on an access road made the property
without value.

He was more than a little surprised to learn the tax sale extinquished
even that.


John Beck’s Free & Clear RE System??? - Posted by Dave-PA

Posted by Dave-PA on February 21, 2007 at 23:14:41:

Hi, I have seen this infomercial many times, and I thought I’d post here and ask if anybody has ever got the system, if it really works, and buying these local government tax sales homes is real and possible?

How can you own a home for just back taxes, isn’t there still a lein somewhere on the home, from the bank or wherever, and how does just paying the back taxes allow you to keep the property free and clear even IF there was a mortgage on the property?

Info on this is appreciated, thanks.


36 helpful hints for tax sale purchases - Posted by David Krulac

Posted by David Krulac on February 23, 2007 at 06:38:41:

Some properties that have sold at tax sale:

  1. Army bombing range

  2. land under railroad tracks

  3. land at bottom of man made lake

  4. land at bottom of river

  5. land with 30 year pre-paid lease

  6. house with no back wall

  7. landfill

  8. toxic waste site superfund site

  9. quarry filled in with trash including chemicals

  10. abandoned gas station with leaking underground storage tank

  11. site with active environmental lawsuit

  12. no land just an expired lease on a demolished building

  13. cabin on leased land, cabin was totally destroyed in 1972 flood, lease expired in 1973, sale was in 1995.

  14. side of cliff 50 foot vertical drop

  15. landlocked parcels

  16. residual from road eminent domain 2 ft. wide
    ( very hard to meet setbacks on 2 ft wide property.)

  17. residual from interstate construction with not right of way off limited access highway.

  18. forest land just clear cut timbered.

  19. land zoned unbuildable

  20. land in flood plain

  21. land in wetlands

  22. land with endangered species

  23. mobile home on rented land totally destroyed by fire

  24. house suspiciously burn by arson 2 days before tax sale.

  25. building with long list of code violations

  26. building condemned and under demolition order from muncipality ( at 1 sale the codes person passed out a list of 22 houses on the sale list all of which were on the city demo list. he didn’t have to do that.)

  27. land too small to build on, doesn’t meet current codes or setbacks. saw a lot that formerly had a small row house. the lot was only 10 feet wide, so the house must have been only 8 ft wide on the inside. unfortunately the current side set backs were 10 feet on EACH side.

  28. land in subdivision where roads were never constructed, and never dedicated.

  29. land that won’t or didn’t pass the perk test.

  30. land with unrecorded deeds. saw one that had 6 unrecorded deeds in a row.

  31. land with title problems. saw one where the last recorded owner died in 1919 and there was no will or deed after that. two attorneys, one for a buyer and one for the “seller” both concluded that there was nothing that you could do to clear the title.

  32. land with boundary dispute, or encroachment. saw 100 ft wide lot that had a 60 ft encroachment on one side.

  33. properties that don’t exist, mapping errors, overlay from the adjoining map, two title chains, etc. etc. etc.

  34. properties sold on unrecorded contract for deeds. saw one where it was sold twice. tax bills going to owner of record, who owned the property 2 owners back. he wasn’t getting paid, didn’t want to bother with sheriff sale and was not paying the taxes. there were then 3 sucessive owners who had title interest in the property. no indication of these contract for deeds in the public records.

  35. I could go on, but my 1 typing finger is getting tired.

  36. many of the properties are problem properties that the sellers could sell on the open market particularily with disclosure laws. many of the properties are worthless, some have negative value. Its a jungle out there, buyer eware, and make sure that you ALWAYS do your research, due diligence and always see the property before bidding. Often times viewing the property makes its flaws obvious.

Successes Vs Failures - Posted by Bill H

Posted by Bill H on February 22, 2007 at 16:50:41:

I might also add Dave that yes, I like all the others can give you a success story. However, I will also tell you that the failures in this business, (getting a house or other REALLY valuable property) far outnumber the successes. Nobody mentioned the quiet title problems, the lack of notification suits, the fact that most judges lean overwhelmingly toward the owner, all really frustrating things in this business.

YES, I have gotten a house for 89.00 and sold it for lots more…I will also tell you that I buy from 350 to 700 liens each year…one year I bought at one sale 503. Of that number THREE actually matured to me. One was a city street…they took it back. Another was a county drainage ditch, they took it back, the last one was a piece of vacant land that was worthless and I let it go to the next sale.

You might ask the question, “How many successes have your had versus the number of failures?”

It is a good business, tough like any other business, fun, frustrating, maddening at times, always, in the redemption states a waiting game and the excitement of getting close to the end and still having some out, always hoping for the BIG hit, etc.

Good Luck
Bill H

Re: John Beck’s Free & Clear RE System??? - Posted by Bill H

Posted by Bill H on February 22, 2007 at 15:18:00:

Do not have John’s book never read it so cannot comment on it. I too have met John and knew him when he was “small potatoes” like Rick said in the early days.

I have been very actively investing in Tax liens/tax deeds/tax certificates for a long time now.

Rick is giving you excellent advise, Charles Parrish is giving you excellent advise.

I an only add that having done this for the length of time that I have…the possibility of picking up a house for pennies on the dollar is almost as good as your chances of winning the lottery.

I do not want property, I an very happy to attend the sales, collect the interest and fees and travel where, when, at my conviences as my wife and I decide.

This ,about 15 years ago, used to be a gentleman’s game and all knew each other, did not overbid, respected each other, all were satisfied with their gains and kept our cool with each other.

Since then it has grown, almost nationwide, to a “Dog Eat Dog” competetiion. We now have financial institutions in the game investing millions of dollars, repackaging them as CD’s amd naking money on both ends.

One of the counties that I invest in most heavily has over 8,800 liens that are sold every year for over 4,800,000.00 (Yep 4.8 Million) It is all done in about 3 three days. They collect between 300 and 500 thousand in overbids each year. AND, on the overbid you do not get it back, do not get interest on it, have no recourse to reclaim it. It is gone the moment you overdid.

If you are bidding in a smaller market then by all means do your due diligence. I do not. Having been in that market for so long I know where all the properties are and what to buy and what not to bid on.

YES, you can get seriousl burned. You can buy old vacant lots, burned out crack houses, swamp land, vacated roadside strips,…you name it and it is probably up for tax sale. WHY, because 99.9 percent of it is NOT worth owning.

John Beck is sellig information…NOT SUCCESS. As Rick, Charles and I now say, GET EDUCATED, Learn what you are doing.

And, I might add DO NOT get caught up in the “Boat is Leaving and I’m not on it syndrome at the auction” I have never had a piece of property that I owned that I could not afford to part with.

Had a piece in Katrina land…wife and I had thought of building a small cabin on it…fellow kept after me until I sold it to him. Closed on Thursday, Katrina hit on Sunday/Monday…wiped him out. He was under 28 feet of water in the storm.

Old Chinese proverb, “Be careful what you wish for…you might get it.”

Good Luck,
Bill H

Re: John Beck’s Free & Clear RE System??? - Posted by stan

Posted by stan on February 22, 2007 at 12:02:48:

My complaint is that his infommercials sound like all you’ve got to do is go to an auction and pick up a few houses for a couple of pennies on the dollar.

I went to dozens of auctions and never found a single home that went for anywhere near that. In fact, I could find better deals on our club BB.

I’m sure that out of the millions of properties that went on tax sale, a few slipped thru the cracks years ago and have provided fodder for the infommercials. The probabilities of that happening today are pretty remote.

I just feel the infommercial is deceptive advertising, catering to the gullible.


Re: John Beck’s Free & Clear RE System??? - Posted by george

Posted by george on February 22, 2007 at 01:30:20:

If you buy his $39 course, this will entitle you to be on his phone list and receive many calls explaining that the way to really be successful is to purchase his “phone mentoring” program at a cost of $4k to $15k, depending on how gullible you seem.

Then you will be allowed to add your name to the hundreds of complaintants who have been bilked out of their money.

Google in: “Beck - fraud” for additional info.

Re: John Beck’s Free & Clear RE System??? - Posted by Charles Parrish

Posted by Charles Parrish on February 22, 2007 at 24:44:39:

I have seen the same commercial. Selling books and seminars is a wonderfully profitable business, and TV producers do a tremendous job make products look great. Some of the programs are good and some are just so, so.


I have done many tax sales transactions; purchased tax sale certificates, pre-tax sale, post tax sales and during the “foreclosure right of redemption” period for many years and I want to let you know the process takes time, knowledge and energy.

There are about 3200 counties in the US and most all of them use a method of tax sale to collect taxes and other liens, (water bills, assessed charges, board up charges or any other assessment not paid by the owner.

I am accociated with several partners who actively pursue tax transaction.

Recently we purchased a small apartment house from an owner who was about to forfeit his ownership to a tax sale investor. We paid the taxes and settled with the owner and re-sold the property by auction within four weeks for a fee of $60,000.

My daughter-in-law purchased a tax sale certificate from the ?Left-over-list? for $850.00. Foreclosed as a ?proper person? and resold the property later for $50,000 and leveraged it to a $90,000 house using a tax deferred exchange.

Here are some starting placing for you to begin.

  1. Call the tax sale department when you want to investor (better to visit them) ask them to give you all the details about investing (bidding) for tax sales.

What are the procedures, how long before you can foreclosure, what is redemption period, and how much interest is paid.

  1. Find a tax sale attorney. Tell him what you want to do. Let him know you want to use his services.

  2. Locate and read the local legal newspapers, look for tax sale foreclosures.

  3. Owners in Tax Sale are very motivated. Find them, visit them, make offers to purchase their property (wipe out the tax sale investor)

  4. Take responsibility for pro-active self education. Get yourself to the court houses and study the system. Invest in self education.

Our tax sale lawyer gives up dated presentations to our associates 3 times a year. This system in my area changes often. You need to stay up dated.

I wish you good luck and giant profits using the tax certificate, pre and post sale offer system.


Yeah, Dave, but… - Posted by Cletus’ friend

Posted by Cletus’ friend on February 23, 2007 at 07:07:48:

… they’re not making any more of it! So it’s got to go up in value sooner or later, right?

Re: John Beck’s -NOTHING CLEAR ABOUT IT! - Posted by elaine

Posted by elaine on February 22, 2007 at 15:46:25:

Unfortunately, since he became a TV Infomercial guru his creditibility and it seems honesty went down the tubes. Some of the excuses given are that the promoters and associates have caused all the problem. He did used to be sememgly honest, but they still use his name and he should do something about it. Also be careful of the $39.00 course. If you buy it on a credit card, they just keep on charging you $39.00 every month, since they now have your credit card number. It would seem that he has very little if any creditibility left.

Re: John Beck’s Free & Clear RE System??? - Posted by Mark (SDCA)

Posted by Mark (SDCA) on February 22, 2007 at 10:54:32:

I bought his course. It was ok. What he doesnt tell you is how very competitive the auction will be.

After weeding out all the raw land and absolutely derelict properties or total war zones, I was left with about 9 properties to bid on. All were redeemed prior to the auction. So that was the end of that year. :stuck_out_tongue:

Even for the properties that DID go to auction (none I was bidding on), there was typically some competition for the property.

Re: Yeah, Dave, but… - Posted by David Krulac

Posted by David Krulac on February 23, 2007 at 08:45:19:

and the check’s in the mail…

Re: John Beck’s -NOTHING CLEAR ABOUT IT! - Posted by Mark (SDCA)

Posted by Mark (SDCA) on February 22, 2007 at 20:01:59:

“If you buy it on a credit card, they just keep on charging you $39.00 every month, since they now have your credit card number.”

If they did it to you, you need to call and get a refund. Here is what probably happened. When you buy the course you get a free 30 day trial to his “Property Vault” (whatever THAT is). The onus is on you to cancel (lame). After that, they charge you every month. The other stupid (insidious?) thing that they do is that they make the monthly charge for Property Vault access the same as the charge for the course. I called and got a refund.



Re: John Beck’s -NOTHING CLEAR ABOUT IT! - Posted by phil

Posted by phil on February 22, 2007 at 17:21:41:

Here is the BBB link on this crook:F rating.

Re: John Beck’s -NOTHING CLEAR ABOUT IT! - Posted by george

Posted by george on February 22, 2007 at 16:13:45:

I agree. Even his long time buddy and collaborator, Ron Starr, have split the blanket.

According to Ron, on another site posting, “unfortunately, I trusted him and he betrayed me as well as countless customers.”

Re: John Beck’s Free & Clear RE System??? - Posted by Gene

Posted by Gene on February 22, 2007 at 11:13:37:

I think that competitiveness at auction is a product of market timming.

I have been bidding on Kern County properties for the last 8 years. When I started most properties did not even get an opening bid. Many improved properties went for very low prices.

In 2005 it was a diffrent story. I saw a burned out house sell for more than ARV. Everything sold for more than retail.

At the peak of the market there were tons of amatures in the mix.

I hope this changes as real estate become less popular with the masses.


Re: Yeah, Dave, but… - Posted by Joe Kaiser

Posted by Joe Kaiser on February 23, 2007 at 20:59:35:

I think I’d have been tempted to pull the trigger on that 30 year pre-paid
lease deal . . .

Re: John Beck’s -NOTHING CLEAR ABOUT IT! - Posted by elaine

Posted by elaine on February 23, 2007 at 18:28:39:

B. S. I called and charged back their charge with the credit card company. That is not what they promised. It was only $39.95 and no more. I answered NO to all their other offers.

Re: John Beck’s Free & Clear RE System??? - Posted by Kristine-CA

Posted by Kristine-CA on February 23, 2007 at 24:32:14:

I bid in my first tax sale, the first purchase of RE I ever made in 2000,
in Kern couny. That was the last live sale. That was fun. I’ve bought a
few others since then and all my tax props (vacant land) have been
good deals. But compared to other leads I work, tax sales are way to
much slogging through properties that are junk and, if not, then get

And you are not kidding about the auction environment at online Kern
county tax sales. Things were crazy. I’m thinking this upcoming sale
will be mellower. I have a CA City lot that you can have for much less
than similar props will be selling for next week. :slight_smile: Kristine

Re: Yeah, Dave, but… - Posted by David Krulac

Posted by David Krulac on February 23, 2007 at 22:28:00:

here’s the deal: small lot about 50x50 had an ATT building on it. They paid to lease the land for 30 years and paid the rent in one lump sum in advance. The owner didn’t see any future in it and stopped paying the taxes and it was sold at tax sale. The new owner was not obligated to pay the taxes for the next 30 years but could collect any rent for the next 30 years and couldn’t generate any income for the property for the next 30 years. Without an income stream for 30 years, I’m not sure what the value is, and who would you get to buy it from you, or would you hold for the next 30 years? I figured that there’d been a better than even chance that ATT would not renew the lease, you’d get the building for free, but its was a basic block building, not high value.