Causation Nation

Posted August 14th, 2007 by Joe Kaiser

Your office imagines there's this overage pie and we rush in and snatch a big piece of it.

Dear Rob,

Okay, I admit it . . . it’s all my fault.

I have three properties in Pierce County’s upcoming tax sale and I may very well decide to let them go to sale in hopes they’ll sell at a profit.

And should there be bidding activity and overage result, it’ll all be because of me.

It’s my fault.


not getting it

About pre-2005 Pierce County overages, Cheryl claims “. . . Fiscal Dynamics was a party to 40% of those transactions . . .”

kringle-presentation-06.jpg

Classic example of her not getting it.

What we’ve done is CREATE 40% of those transactions.

We haven’t somehow taken 40% of the overage pie unfairly. What we did was make the pie that much bigger and merely claimed what would not have been there had we not caused it to be there.

If it was a $60k pie before we showed up, and a $100k pie after, claiming the $40k piece we created (40%) has zero impact on the original size of that pie, Rob.

Big difference.


Your view

Your office imagines there’s this overage pie and we rush in and snatch a big piece of it.

Not the way it works.

Sure, that big overage pie is there, but it didn’t happen by accident nor would it be the size it is if we hadn’t chosen to make it so.

The overage funds representing our profits are only there because we jammed our properties into the sale in an effort to make the pie that much bigger.

We could just as easily have paid the taxes on each of those properties and none of that 40% pie piece happens.


2007’s sale

The three properties I purchased from individuals in this year’s tax sale may or may not result in overage profits.

But I can assure you there is a way to absolutely guarantee no overage is created.

How?

I can simply pay the property taxes and foreclosure costs and those properties are instantly out of the sale.

And the sellers’ (at least in your office’s view) potential overage profits?

Poof, they never happen.

I don’t think you get that.


causation nation

That overage Cheryl talks about was created because of our efforts. We caused it to happen.

Causation is defined as the relationship between one event (called cause) and another event (called effect) which is the consequence (result) of the first.— Wikipedia

We had THE say in paying or not paying to stop those foreclosures, making us the causation for overage happening, or not.

Did we cheat sellers on properties where we paid the delinquencies so the sale was terminated and no overage could result?

Of course not.

Likewise, did we cheat sellers on properties where we did not pay the taxes and a sale resulted in overage profits we then claimed?

Of course not. That, too, is our right.

In either case, we chose the appropriate exit strategy (tax sale or otherwise) and as such were the causal factor for any overage that ultimately resulted.


my bad

Attempting an overage play that creates overage on the three properties in Pierce County’s 2007 tax sale is my call alone.

And should I decide it makes sense to pay the taxes and stop the foreclosures, I will do so (and thereby end all possibilities of overage being created).

Should I decide to roll the dice and take my chances at the sale?

Overage may or may not result, but in either case, the possibility for it happening is something I alone control.

I am the causal factor.

And that “40%” thing Cheryl mentioned earlier?

It’s all my fault and I take full responsibility for making it happen. Sorry Rob.

My bad.

Respectfully,

Joe Kaiser


One Response to: “Causation Nation”

  1. Gray responds:
    Posted: August 17th, 2007 at 2:45 am

    “We could just as easily have paid the taxes on each of those properties and none of that 40% pie piece happens.”
    “We had THE say in paying or not paying to stop those foreclosures, making us the causation for overage happening, or not.”

    Hmm, Joe, isn’t this exactly what I mentioned in my other comment? Honestly, why don’t you simply pay the taxes and thus get out of the ‘line of fire’?

    But no misunderstanding, pls: Yes, the AAG’s office is overplaying its hand here. The right way to deal with your ‘overage play’ would be to inform the legislators and let them create a new law that would allow the county to confiscate liquid assets of any company or person who is refusing to pay taxes. Go for the money first, only then after the property. You have to admit, this would be the end of the ‘play’, right?


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