In this video we discuss the most beneficial states to invest in when you first start your tax sale investing career.
Transcript:
Hi there! Casey Denman here with TheTaxSaleAcademy.com. In this video, we’re talking about which areas you should start investing in as a tax sale investor.
I get a lot of beginning students who ask me, “Are certain states more profitable than other states?” I answer them as this — don’t worry yourself with the state that you should be investing in. What I always suggest is to start local. Start as close to the house as you possibly can.
The easy part is the obvious — you don’t have to travel. But secondary, there is less time commitment and you know which areas to invest in. You know the good areas, the bad areas. You understand the customs, the procedures of your area that you live in. If you just pick a place on the map somewhere across the country and say “I’m going to start investing here” that you don’t know anything about, that’s a great way to lose money. So start locally.
Now, I know there are some people out there who say, “Well, I live in a tax lien state. So obviously, I can’t start investing in tax deed properties here, right?” Of course not. If you live in a tax lien state, you can’t start that local. I always tell people that come to me with this question — they say, “I live in a tax lien state. What should I do?” My response is, “You don’t need to live on Wall Street in order to invest in stocks, right?” Especially with technology nowadays. You can invest just about all around the country in tax deed states without having to live there.
Now, as far as the local thing, it’s great to invest locally if you can. What I suggest you do, if you don’t live in a tax deed state, consider investing in the nearest tax deed state. Because if you only live a couple of hours from the border of a tax deed state, you’re going to be much more familiar with that area at least when compared to something that is 20 or 25 hours across the country. So invest as close as possible.
Now, even if you don’t win any properties in these areas; if your local market is just not a very profitable local tax deed market, or maybe the next state up is not a profitable tax deed state, don’t concern yourself with it. Just don’t worry about it. The idea here is to immerse yourself into all things tax sale. The more you learn about tax sale investing, the more you’re around tax sale auctions, the more you hear the lingo, the more you understand the customs and the procedures, the better you’re going to be as a tax sale investor.
You’re not going to be a one hit wonder, you’re not going to go to an auction and just strike it rich your very first auction, more than likely. You might be very, very profitable, but it’s just not going to change your life by attending one auction. A lot of times you’re going to attend five or six auctions before you finally win a piece of property and you start getting the hang of it. Because then, and only then, is when you will understand how to successfully invest in tax sale properties.
Now, what about this? What about flying across the country to attend a tax sale auction because you know that certain area is very, very profitable? Absolutely. I am a strong advocate of it. I fly across the country many, many, many times every year. I attend hundreds of auctions across our country. I’ve been doing it for a long, long time.
Now with that said, you don’t want to go and just pick an auction offline and fly there to it. Before I ever consider attending a tax sale auction at any city, I have spent a substantial amount of time researching that city. I know just about everything that you can possibly know about it. You see, I know as much or more than some locals even, about the real estate markets that I consider investing in when I fly to these different tax sale auctions.
Now, when it comes down to it, locally is obviously very, very easy because more than likely, you’re familiar with that market, even if you aren’t in real estate yet. But if you want to fly across the country, you can certainly work your way up to that point. But start local. That’s the easy thing.
I really hope you’ve enjoyed this video. If you’d like to see similar videos, head over to my website at TheTaxSaleAcademy.com, which you can do by clicking the blue link right here next to my head. Once you get there, download your free copy of my e-book, “The Tax Sale Investing Blueprint,” and you’ll be on your way to a very successful tax sale investing career.
Take care, folks! Bye-bye.