Transcript:
Welcome to the Tax Sale Podcast, where tax sale investing is made easy.
I’m Casey Denman, a tax sale veteran, expert, and trainer, author of the tax sale playbook, founder of the tax sale academy and your host here on the tax sale podcast.
Thanks for joining me on today’s podcast, and as always, at the conclusion of this podcast, if you’re looking to learn more about investing in tax defaulted real estate head to taxsaleacademy.com. That’s taxsaleacademy.com.
On this podcast episode, we’re talking about Doing It Differently. And once you get going, this could very well be the factor that seperates you from the rest of the pack.
First off, there is no reason to invent the wheel. Tax sale investing is essentially buying a property at one price and selling it at a higher price. Obviously, there is quite a bit involved with it, but that’s the 30,000 foot view.
So, buy property, resell it and make money.
And you can do this all day long with tax sale properties. It will absolutely take time, effort and training to get you to this point, but anyone is capable of success if they approach this business the right way.
One thing I always suggest, however, is to do it differently as you progress. Consider what works best for you based on your skillset, your training, your experience and your comfort level. When I look back at my career I can recall a handful of times where I looked at something differently than every other investor and I reaped substantial financial rewards.
I’m talking about the time I bought that 1 cent building when no one else was there. When I invested in that property everyone else thought was a trap. When I bought that land and subdivided them for a 500% return. The stories go on and on.
When you first get started you want the easiest, most foolproof investments possible. As a beginner, I don’t recommend you invest in ANYTHING that’s too complex and isn’t an easy slam dunk transaction. Sure, it’ll take you a little bit longer to get into your first deal, but it’ll greatly increase your comfort level and momentum. Do the easy transaction first, then build from there.
It’s kind of like when you first learned to drive. You probably made a short trip here or there. Probably in a rural area or on an uncrowded road. Then overtime you built up to driving on the freeway and you became more and more comfortable every step of the way. Tax sale investing is the same thing – start small, start easy and then push forward.
As you being to move forward in your business and as you gain experience looking at properties and your comfort level increases, you should start looking at stuff differently. And it’ll all begin with the way you look at the simple stuff. When you’re start out, that piece of dirt might go from a random lot, to an 1000×125’ lot that would be a prime opportunity for an investor to build a duplex on because it is zoned for two family. Or maybe it goes from a home, to a dilapidated home that had code violations and foundation issues.
But, eventually you’ll begin to evolve. And maybe you’ll see massive potential in a property that everyone else considers to be your average run of the mill property.
I have a lot of investors that look for different things. Obviously, if the slamdunk deal comes in, they won’t pass it up. Start looking at stuff from the perspective of, is there any other way I can squeeze more profit out of this property while still feeling comfortable with how I’m doing it? What’s the most profitable way to invest in this property? Ask yourself that every time.
Now, many times the most profitable way will be a simple buy and flip transaction. But sometimes it won’t be that way. And at first, you’ll likely not be able to spot the opportunity in front of you. And that’s ok. But understand that there could be hidden potential and as you become more and more comfortable and diligent researching and learning, you’ll begin to spot more and more opportunities.
Let look at those mobile home lots in the rural sections of town that no one else really wants. I might see it as a property in the middle of a low income rural area with zero potential. But another investor sees it as a property that he can sell with owner financing, where he’ll double his money, earn 10% interest and can reap the benefits for many years to come.
Another example are the folks that buy properties with city or county liens. Maybe there is still a lien for code enforcement or something that scare everyone, but you are comfortable negotiating with the city or county to get it removed. That lien will eliminate most of your competition…but not you. And when you do get it redeemed, you can reap the benefits.
Or maybe you’re comfortable getting a building variance from the city or county so that you can buy a lot that is otherwise too small to build on. Most buyers would look at it like a small parcel with no value, but you see a parcel that you can get with zero competition, you file a few papers and bam, you’ve made a lot of money.
Or maybe you know the owner of the adjacent property to a landlocked parcel. You know you can work a deal out with him for a 10’ easement to access that property. You’ll look crazy buying a landlocked parcel at the auction, but you’ll be the one to reap the rewards.
Examples like this are endless. A good majority of transactions will be the standard stuff. And even if it appears to be a standard buy and flip type property, is there anyway you can do it better, faster or easier?
It’s up to you to begin to look at stuff differently. Be familiar with your market, how you research…dig deep in understanding everyway possible to look at a transaction. And don’t write anything off, especially when you are just getting started. Sure, maybe the property is junk, but figure out why. Figure out if there is a way to turn a profit. If there isn’t, you can take what you learned and move on more knowledgeable.
Again, for every single property, ask yourself . . . how can make this property as profitable as possible, in a manner that sits well with my comfort level? And when you begin to figure out how to find the opportunities, your revenue will likely increase dramatically.
Thanks so much for joining me on today’s episode.
And if you haven’t done so yet, be sure to pickup your copy of my free book, Tax Sale Playbook, which you can get at TaxSaleAcademy.com. The book itself is free, we just ask for your help covering the nominal shipping costs.
And as always guys, if you found this episode helpful it will mean so much to us if you take a few second to leave positive feedback.
Take care guys and make it a successful day.
See ya!