I ordered Joe Kaiser’s materials and although I found the concept fascinating, I never utilized it because it involved too much physical time at the courthouse
tracking things down, making calls and writing letters etc. What interested me though is the priority of the liens. I currently purchase municipal tax liens which have a superpriority over most anything else, (i.e.mortgages, judgments etc) and I know that mechanic’s liens are the rare lien with priority over the municipal lien. In a nutshell,these arise when a sub-contractor does work on a house or
commercial project and is not paid by the general contractor. The sub files a mechanic’s lien on the property for what he is owed. Joe recommends tracking
down the owners of unpaid liens and buying them for pennies on the dollar, and then seeking full payment. Get the book, if you are willing to work at it there are very real possibilities. As Joe says, there really is no one else doing this. Ben
While ordering some books on Sat I noticed “Power Cash Flow: The Mechanic’s Lien System”. I’m always looking for relatively unknown niches and the description of the book and potential rewards of buying these notes seemed interesting. All this brings several questions to mind:
Could someone give me a description of a mechanic’s lien ?
Has anyone read this book ?
Has anyone pursued buying mechanics liens and what was your experience ?
I’m currently working Joe Kaisers program and I’m generally happy with it.
I’d suggest that you’d get some basic RE training before jumping into this particular area as it can get a little complicated at times. You’ll also need to study the laws for your particular state as they relate to mechanic’s liens in order to work them effectively.
I never had to spend time at the courthouse looking up liens. I ask the registrar of deeds at the county offices for a copy of the sales report for Claims of Lien and I pick it up or have it sent to me a day or so later. I have to do some research on addresses and legals for some of them but that’s not too hard if you’re used to doing it all the time.
The software is very good and streamlines the process quite well. However I did have to redraft my own version of a couple of the forms to conform to state requirements for recording purposes
A Mechanics lien is simply a claim made by someone who has provided materials, services or labor to alter, build, or maintain a piece of real property. A Carpenter who installs new windows and does not get paid for the work files a claim of lien against the property he worked on. This lien gives him the right to foreclose on the property to get the money due him. Buying a mechanic’s lien is similar to purchasing a defaulted note secured by real estate. There are a number of differences such as filing technicalities which differ from state to state but it gives you the general idea.