Condominiums can make a great investment or be your worst nightmare. Watch this video to discover what you should look for when buying a condo at a tax sale or tax deed auction.
Transcript:
Hi! Casey Denman here with TaxSaleAcademy.com. In this video, we’re talking about buying condominiums at tax sale auctions. If you’ve followed me for any length of time, you know that the biggest factor in a successful tax sale investment is the research. There’s no way around it. You have to research and you have to know everything you can about the property before you consider investing in it. As a matter of fact, that’s true for all sectors of real estate investing.
Now, if we want to break it down to tax sale investing, when it comes to buying condominiums, this is one section you don’t want to skimp on your research. Now, when you think of condominiums, you think of this beautiful oasis on the beachfront somewhere, right? You think about maybe you can walk out your back porch and walk into the sand, and then suddenly, you’re in the beautiful water in the Caribbean somewhere.
Well, condominiums aren’t usually that great when it comes to tax sale auctions. But there is a lot of money to be made in them if you know what you’re doing. Now, there’s two things you need to focus on when it comes to your research for condos at tax sale auctions. The first one is the fees. Condo living can be crazy expensive. We’re talking some condominiums will charge $500, $1,000, $2,000 per month just for the amenities to live in that condo complex.
Now, the last thing you want to do is buy a piece of property and sit on it for a year while you’re paying these dues because these dues are going to eat up at your profit. So what I recommend is before you consider investing in it, what you should do is call the condominium association and ask them. Say, “What are the fees for this property? What are the restrictions for this property? Is there any other information that a buyer interested in purchasing a condo in this complex should know about?” And usually, they’re more than happy to answer your questions because they like to answer your questions before you buy it rather than answering them after you buy and you having an argument or something because you’re on two different pages.
Now, the second thing you should focus your research on is well, does it even exist? I know it sounds kind of like a silly or crazy question, but picture this. Picture a developer that has huge, grand plans to build a two-story condominium complex on that beachfront oasis. Then that developer goes down to the county. He has that big parcel cut up to a bunch of small parcels, right? He has got a bunch of parcels on the top story and a bunch of parcels on the second story. Well, then that developer goes bankrupt, or he just takes off and decides he’s not going to develop that parcel anymore.
But you still have all those separate parcels, which means you still have all those separate tax bills, which means that those tax bills and those properties could end up at tax sale auctions. The last thing you want to do is buy a second story condominium in a building that doesn’t even exist. And believe me, it happens every single year and I see it every single year. We call these “air condos.” It’s absolutely worthless and all you’re doing is buying yourself a tax bill.
So, when it comes to condominiums at tax sale auctions, you can make a lot of money if you know what you’re doing and if you focus on your research. And again, the two things to research mainly when it comes to condominiums, in additional to all the other stuff of course, are the fees and does it even exist.
That’s all I got for you today. If you’d like more information about the very lucrative tax sale investing business, head on 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 Blueprint, and you’ll be on your way to a very, very successful tax sale investing career.
Take care, folks! Bye-bye.