In today’s video we discuss five of the most common mistake that beginning tax sale investors make. These are mistakes that I have seen time and time again and have cost a lot of people loads of money!
Transcript:
Hey there! It’s Casey Denman here with TaxSaleAcademy.com. In this video, we’re talking about the 5 common mistakes that beginning tax sale investors make.
Mistake #1, they don’t research thoroughly enough. There’s a lot of research involved in investing in tax sale properties. A lot of people have the misconception that you just go to the auction, you buy it at a certain price and you sell it for more money, and that’s all there is to it.
Unfortunately, a lot of the work is often behind-the-scenes. It’s in that research phase of the tax sale investment process. A lot of beginning tax sale investors are only scratching the surface when it comes to the amount of research that they should be doing on a particular piece of property. Before you consider investing on anything, you have to know absolutely everything you possibly can about that particular piece of property. So do a lot of research.
Mistake #2 is well, they pay too much money. They might have a budget in mind. They might say, “I’m going to pay $1,000 for a piece of property.” They get to the auction. They get excited. Their adrenaline starts going. That piece of property comes up and they start waving their bidder number and yelling out bids against other people. They get caught up in bidding wars and all sorts of other stuff, and before they know it, that $1,000 budget was stretched to $1,500. And this, of course, leads to you losing a lot of money. So don’t pay too much for a particular piece of property. Set your budget and stick to it.
Mistake #3 is that they often rush themselves into an investment. A lot of times, tax sale investors will start learning all these information. There’s a lot of information out there. And they set a timetable on themselves. They say, “Two weeks from now, I’m going to buy my first tax sale property.” So they go to the auction, and unfortunately, all the properties happen to be selling for higher than their budget. So they start stretching their budget more and more and more and they start rushing themselves. And then, all this leads to is them losing money on a particular piece of property. And eventually, they’ll hate tax sale investing, all because they rushed themselves. So don’t put a time limit on anything. Don’t rush yourself into any investment.
#4 is well, they never get started. They’re paralyzed by the amount of information that’s out there. There’s a lot to tax sale investing. I teach hours and hours and hours about tax sale investing here on YouTube. I also teach dozens of hours in the Tax Sale Academy. And they take all these information and they just kind of get paralyzed. They don’t know what to do with it.
Well, you have to take action. You have to get started. So don’t fall into the trap where you just continue to learn and you never get started. Likewise, it goes back to Mistake #3. Don’t rush yourself, but make sure you get started eventually.
And then lastly, Mistake #5, well, they don’t take the time to do what you’re doing right now. They don’t take the time to learn. They walk into an auction just because they happen to see a sign or they read about something in the newspaper or they saw a late night infomercial or some garbage like that. And they walk into the auction and they say, “Oh, I’m going to bid on every piece of property that I can get for $100 or something.” Before they know it, they have all sorts of liens and judgments against them because they bought the wrong pieces of property or they just don’t know what they’re doing. So, you have to take the time to learn what you’re doing.
So, these are 5 common mistakes that beginning tax sale investors make. I hope you enjoyed this video. If you’d like to see similar videos or you’d like to learn about the very lucrative tax sale investing business, head on over to my website at TheTaxSaleAcademy.com. And you can do that by clicking the blue link right here next to my head. And again, it’s TaxSaleAcademy.com.
Have a great day! Take care! Bye-bye.