Transcript:
Hey, what’s up guys, it’s Casey Denman from the Tax Sale Academy coming to you with a livestream here on Facebook today.
So glad you’ve decided to join me today. As always if you want more information about tax sale investing, be sure to head on over to TaxSaleAcademy.com.
Ok, today I want to talk about something that is not exactly tax sale investing, but is directly related to tax sale investing. We’re talking about all the skillsets that will help you to be as refined as possible as a tax sale investor. Now in today’s livestream we’ll be touching on a few of the different topics. If you’re a member of the tax sale academy, we’ll actually be going deep into this subject in next week’s live workshop.
Here’s the deal. I can teach you how to buy and sell tax defaulted real estate all day long. I can teach you the process, the strategy, the methods and everything that goes along with it. But there is outside knowledge that will certainly help your business. This outside knowledge, these additional skillsets will contribute to you being a well refined investor. A refined investor, or someone that has more then the minimum knowledge required to invest, will be the most successful investor and will be able to spot the best opportunities.
Let me give you an analogy. A number of years ago, I trained for and received my pilot’s license. The truth is that once you’re in the air, anyone can fly a plan for a few minutes. All they have to worry about is the throttle and the yoke. One makes it go and the other steers it. Pretty simple, right? That’s tax sale investing. You buy a property at a lower price, and sell it at a higher price. So far, so good.
But, what if you see a large cloud ahead, which indicates there could be some form of weather. How would you respond? Wouldn’t it help to know a thing or two about weather?
Perhaps you have something more pressing like your engine has an odd sound. You’d might not be so terrified if you knew a thing or two about engines.
Or maybe you hear something from air traffic control that concerns you. If you were familiar with the language ATC uses, then you’d know exactly what to do.
All of these things really have absolutely nothing to do with the act of flying the airplane. You only need the throttle and yoke for that, right? But all of these things can has enormous impact on your plane and well, your safety.
Tax sale investing is the same exact way. You buy and sell properties, and that’s all in theory.
But, there are a number of outside factors that impact your investment. Some are very closely related to that specific property such as HOA issues, city/county ordinances, water bills, soil issues, foundation or mechanical issues, that kind of stuff.
Then you have another layer not quite as closely related to that specific property, but still has a huge impact on that property like the desirability of the neighborhood, the current market supply and demand in that area, area crime rates, the school system, local job market, that kind of stuff.
Then there is another layer that is far removed from the actual property, but still has an impact on that property that includes that like available mortgages, the US economy, tax incentives or penalties like mortgage interest deduction, the current interest rates, new lending regulations, laws like Dodd Frank, that kind of stuff.
The deal is that there is so much stuff you can’t control. You have no control over the interest rates, for example. Yet, if that go up too much, this will severely limit your audience in many situations for homes that first time buyers might desire.
But here’s what you can do. You can educate yourself. Just like flying that plane is more than a throttle and a yoke, tax sale investing is more than buying and selling. It’s not just knowing the process, making a bid and reselling a property.
You must take the time to educate yourself through more than just the how to of tax sale investing. So how exactly can you do this? There are a number of different ways, and like I mentioned, if you’re an academy member we’ll be going over many different ways in next week’s work shop, but in this livestream, I want to touch on five.
These five topics might not be precisely tax sale investing topics, but they are the topics that have such an impact on your tax sale business that you must learn about them as well.
1) Alright, let’s first talk about loan programs. If you’re buying and selling a home or lot, you’re buying will pay for the property one of two ways. They’ll either pay cash or they’ll take out a loan of some sort. The primary loans are seller held, conventional, VA, FHA and USDA. Can you tell me the difference between each of these loans? If not, you should start doing a little research. Figure out the best loan that will work for your buyer. The difference between a conventional loan and a USDA loan could be the difference between putting 20% or more down and putting absolutely nothing down. Take the time to do a little research and know how the loan process works so you can position your investments properly.
2) Let’s talk market conditions. And when I say market conditions we’re talking about on a national, state and local scale. What is the economy doing? You can buy and sell and profit in all different types of economies. But if the economy is sliding, you might want to pay less for a property then you normally would. If values is rising rapidly, perhaps you’d pay slightly more than you’d usually pay. Read articles from the wall street journal, your local business magazines, realtors associations, large banks, that kind of stuff. Take every specific article with a grain of salt, but watch for trends, listen to the market, pay attention to what’s going on.
3) Another one involves the legal side. Know the laws in your area. Read over real estate contracts and make sure you understand every single line. Take the time to read through the tax sale laws and become an expert of them. Make sure you understand the legal side of advertising your properties – do you realize that you can’t refuse to rent or sell to someone just because they have kids, unless there are certain exemptions. Seek out laws that you learn about when it comes to real estate and apply them to your business.
4) Next one. Advertising. How on earth are you even going to sell your properties? Guess what, the old days of putting a classified ad in the local newspaper doesn’t work anymore. The most efficient way to advertise and sell your properties is by using technology, more specifically through internet marketing. If you’ve never heard of it or are unfamiliar with it, then you need to start learning. And once you’ve learned about it, continue to learn about it because it changes every single day. It’s the only way to build a large buyer’s list and to sell properties quickly and I highly suggest you spend the time on Google to figure out what this internet marketing thing is all about.
5) How about the Area Customs? What is typical in the specific area you’re investing in? Are home inspections standard upon resell? Who pays for the title insurance when selling? Do attorneys close most transaction or title or escrow companies? How about any transfer or state taxes – who is responsible for these? These area customs will impact what you do as a tax sale investor. Perhaps you’re familiar with one area and have experience there. Guess what, the next county or state over might be completely different!
The main message behind today’s livestream is that there is so much more to tax sale investing besides buying and selling. I want you to understand that you can and should acquire many different skillsets and you should learn about anything that could have an impact on your business.
There’s also a good chance that you already have a skillset or two that can help your business! Perhaps you’re a plumber? That’s great and can help you know about plumbing issues that could exist that others might not know about.
Maybe you’re a bookkeeper and you think that doesn’t apply at all to tax sale investing. Guess what? I’ve got hundreds and hundreds of folders and lots of money going out and coming in that needs to be accounted for.
These are all skills that you can apply to your tax sale business. Here’s the truth: Learning about the mechanics, strategies and the processes behind tax sale investing will help you to start and grow your business. Learning about as much as you can that’s either directly or indirectly related to your business like the topics we discussed, is what will help it grow exponentially.
So take the time to educate yourself on all aspects of tax sale investing AND real estate investing in general. The more educated you are on your business, the more successful your business will become.
That’s it for today guys. I really hope you’ve enjoyed today’s livestream. As always for more information on tax sale investing, be sure to head on over to TaxSaleAcademy.com. That’s TaxSaleAcademy.com.
Have a wonderful day folks. Take care, bye bye.