In this video we break down the five steps required to be successful at a tax sale auction!
Transcript:
Hey there! It’s Casey Denman here with TaxSaleAcademy.com. In this video, we’re talking about five things that you must do before a tax sale auction.
The first thing is you must get a tax sale list. This is kind of obvious. If you want to know the properties that are coming up at a tax sale auction, you have to get access to the tax sale list. Now, I’ve got other videos here on YouTube and on TheTaxSaleAcademy.com which explains to you how to get a tax sale list. But long story short, tax sale lists are 100% free. And the best place to usually start to find a tax sale list is through the county department that handles tax foreclosures. So the first thing you have to do is to get a tax sale list.
The second thing, you have to research that tax sale list. Again, I’ve also got videos on how to research. There are loads and loads of videos on how to research because it is the most important aspect on tax sale investing. You have to research all the properties. And from the beginning, especially as an investor, you have to go through each one step by step by step.
Now, once you get familiar with the area, you’ll be able to start to realize stuff. You’ll say, “Hey, this particular subdivision, I don’t like. So I’m going to skip this one” or learn how to read legal descriptions, which will say – automatically, you’ll read a legal description and say, “That legal description basically describes a sliver of land so I’ll skip that one.” But when you start, you’ll have to research just about every single piece of property.
Next, you’ll have to decide what you want to bid on and what your budget will be for that property. So you do all this work of researching your properties. Then you want to put a star by the properties and say, “These are the properties that I’m really interested in.”
Now, obviously, there’s going to be a lot of properties that are going to probably sell much higher than your budget will allow. But certainly, research those properties. For instance, if you have $1,000 and you’re hoping to buy a shopping center, well, you’re probably not going to be able to buy one. But go ahead and research that property for the odd chance that it does sell for $1,000, you know everything you possibly can about that piece of property.
What this allows you to do is you’ll go down the list and you’ll say, “Hey, these are the properties that I like.” And as soon as you have the opportunity to buy those properties, if they’re in your budget, buy those properties at the auction.
The next thing you have to do, number four here, is determine how you will pay. Now, a lot of auction companies will accept credit cards or money orders or cashier’s checks or cash. Some don’t accept cash. Some don’t accept credit cards. The best thing again to do is contact the county department responsible for handling tax foreclosures and ask them how you can pay. If they say they want cash, go to the bank and get $100 bills for them. If they say that they’ll allow credit cards, I would highly suggest that you contact your credit card company and say, “Listen, I might be making a large purchase using this credit card” because the last thing you want to do is have your credit card declined, and then they sell that property to the backup bidder.
Then the fifth thing here is obvious. You have to register for the auction. Now, again, some auction companies will require you to register three, four, five days in advance. So you don’t want to show up at the auction and everybody else is registered. You go to show up in the register and they say, “Well, sir, you should have registered five days ago.” So again, contact the county or the auction company and ask them the registration details. See if you have to register beforehand, you have to preregister, or if you’re able to register on site.
So the five things you must do before a tax sale auction is to get the tax sale list, research those properties, decide what you’ll bid on and your budget, determine how you’ll pay, and then register for the auction.
If you’d like more information on the very lucrative tax sale investing business, head on over to my website at TaxSaleAcademy.com. You can do that 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 Blueprint.
Have a great day, folks! Take care! Bye-bye.