In our weekly question segment we answered Jourdin’s question who wanted to know if Tax Sale investing is similar to bank foreclosure investing. Find out out answer in this video!
Transcript:
Hey folks! Casey Denman here with TaxSaleAcademy.com, answering your weekly question. This week’s question was actually sent to us via email and it’s from my friend, Jourdin, who’s a member of The Tax Sale Academy. And he wants to know if tax sale investing and bank foreclosure investing is similar or the same.
Jourdin, great question. In theory, it doesn’t matter what kind of real estate you purchase; whether it’s a foreclosure or if it’s just from a member of the general public. There’s going to be certain steps that you’ll have to take in every single real estate transaction, including your due diligence. You want to know whether you’re buying the piece of property to move you and your family in or you’re buying the piece of property as an investment. You want to know that the property is not going to fall down the day after you buy it. You want to know that your value is there. Obviously, you don’t want to spend too much for a piece of property. So there’s a lot of stuff that you have to take in; all sectors of real estate.
Now, where bank foreclosure investing, where tax foreclosure investing differ here is if we’re talking about the actual auction process, the courthouse auction process. When you’re at a bank foreclosure auction, you’re going to be bidding against a lot of attorneys that are going to be representing that bank. Oftentimes, you have to worry about such things as was the second or the third mortgage holder notified? Because if those mortgage holders weren’t notified, guess what? You have to foreclose those guys out as well. So there’s a lot of variables when it comes to bank foreclosure investing.
When it comes to tax foreclosure investing, the only person you have to worry about is more or less yourself. The government has to go by a certain set of standards. There are no attorneys to bid on a bank’s behalf, there is no big bank to deal with, more or less. All you have to deal with is yourself.
Now, obviously, it comes with a price. You have to do all the research yourself, you have to rely on yourself a lot. And I hope you have great training before you consider doing this.
Now, obviously, as a member of the academy, you have access to a lot of amazing stuff. But for those out there that don’t have access to the academy, I certainly hope you have some sort of training from somewhere before you start investing in tax sale properties. Because like I said, you have to invest in more or less yourself. You have to invest in that knowledge to learn as much as you can about tax sale investing because that’s what you are relying on when it comes down to it.
So bank foreclosures; yes, absolutely. There’s money to be made there. But in my opinion, tax foreclosure investing is a lot easier, a lot safer, and you can get into it a lot cheaper many times.
So Jourdin, I hope this has answered your question. If you have a follow-up question or if anybody else has any questions about tax sale investing, head on over to my website at TaxSaleAcademy.com, which you can do by clicking the blue link at the bottom of this video. Again, it will take you to TaxSaleAcademy.com. Once you’re there, submit your question, and it’s very possible you’ll get a video response just like this one.
Take care, folks! Have a wonderful day! Bye-bye.