What many investors fail to understand is that historical data can often help predict the future . . . even when it comes to tax sales. In this video we discuss the importance of reviewing historical auction results and how you can use them to help increase your tax sale profits in the future.
Transcript:
Hi! Casey Denman here with TaxSaleAcademy.com. In this video, we’re talking about reviewing historical auction results for those past tax sale auctions.
Now let’s first talk about the importance of it. It’s especially important if you’re new to a particular area; if you’ve never invested there before. But basically, it allows you to determine the supply and the demand of the variety of property types in that particular area. And if you’re familiar with Economics, supply and demand controls just about everything, especially when it comes to price.
Now this information is especially important in determining your budgeting needs. We’re talking about your budgeting needs or how much money should you come to the auction with. How much money should you budget for that particular auction and how much money should you budget for those particular property types at that auction? So it’s especially important there.
It could also help you to discover good or bad particular areas in that county that you should consider or not consider investing in. Let’s say for instance a piece of property has no bids. Well, if it has no bids, you should invest a little bit more time into researching that particular area.
Now, it could be bad. Every year, I see auctions that have pages and pages and pages of properties with no bids. At first glance, it might seem that it’s just a great way to buy properties, right? All these properties, you just pick and choose the property that you want and just pay $1 for it or the minimum bid and you own these properties.
Well, it’s not quite that easy. Upon further research, you’ll discover that these properties have substantial HOA bills or water bills that come monthly with the properties. We’re talking HOA bills or water bills that actually will outvalue the property after you’ve paid them for just a couple of months. So obviously, you don’t want to invest in those properties and that’s a good reason that those properties are being shown with no bids on those past auction results list.
Now the same goes, and it could be a good situation. It could be a scenario where there’s a few pieces of property here and there where other investors just didn’t bid for whatever reason. You look up some research on these properties and you realize, hey, these are phenomenal investments. So right then you determine, maybe this is an area that I should consider in because if there’s past auctions that these properties have slipped through the cracks, potentially they could slip through the cracks in the future, and you can make a lot of money at it.
Now, how do you access these past auction results? It’s simple. Just contact the department responsible for holding the tax sales in this particular area that you’re interested in investing in. Now, sometimes it’s as simple as going to their website and downloading these past auction results list. Now, I have to warn you here that some counties will only put these auction results list on their website for a short period of time. We’re talking anywhere from one to three months. So if the auction just took place last month, you need to start searching for this list very quickly.
If it’s not available on their website or they don’t have a website, consider giving them a call. Just contacting them. Say, “Listen, I’m interested in investing in tax sales in your area. But first, I would like to see some past auction results just to see if it’s feasible for me to do so.” A lot of times, they’ll be more than happy to send you these auction results.
So there you have it. There is the importance of reviewing the historical auction results at tax sales.
I hope you’ve enjoyed this video. If you’d like to see further videos similar to this one, consider heading over to my website at TaxSaleAcademy.com, which you can do by clicking the blue link right here next to my head. Again, it will take you to TaxSaleAcademy.com. 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.