Transcript:
Welcome to the Tax Sale Podcast, where tax sale investing is made easy.
I’m Casey Denman, a tax sale veteran, author of the tax sale playbook, founder of the tax sale academy, the leading tax sale expert and trainer 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. There’s a link down below in the show notes, and at that site you can join the leading tax lien and tax deed investment training platform, The Tax Sale Academy.
OK, so let’s say you did everything right. You heard about tax sale investing. You really took the time to learn about the business, you studied the laws, you learned about the process, you might’ve even attended a few sales just as a viewer. Then you decided to go for it. You researched some properties. You determined values. You picked out a few that you liked. Then you got your binder prepared, went to the bank and got your deposit, you put on your clean clothes, arrived early for the auction, listened to the rules and then it started.
The first property you wanted came up for sale. But unfortunately, it sells for too much. Then the next one comes up. Well, it also sells for too much. Then the next one. It also sells for too much. Before you know it, you have sat there for two hours watching all of the properties you were interested in get sold for too much money. You walk out empty handed.
You’re defeated. Depressed. Then you start questioning this business. You question if you can really make it work. Then perhaps you question your area. Maybe tax sale investing just doesn’t work for you in that area. Or maybe, the worse, you even start questioning yourself. Are you even capable of doing this?
And this can really even apply to someone who has previously seen success but is now on a dry spell. Been there, done that!
First off. Here’s the deal. Yes, you are capable of being a tax sale investor. I can promise you that. Now, there are strategies on how to find the best areas, how to limit competition and how to make your money go as far as possible. But we’re not talking about that stuff in today’s podcast epispde. We’re talking about the fact that you didn’t get a single property at your first auction. Or maybe you’ve attended two auctions and didn’t get a single property. Heck, maybe you’ve attend a years worth of auctions and haven’t been able to purchase a single property.
Well, guess what? I had a student I taught one time that attended auctions for an entire year. An entire year. After that year, everything started clicking. She finally got her first property. And guess what? She hit it big. She made close to $30k on that property. Then the very next week, she bought a small house for $11,000. And instead of flipping that property, she kept it as a rental and makes around $850 PER month the last time I checked. That’s $10k a year forever.
So don’t be impatient.
But, back to you. Back to now. Back to the feeling you have when you walked out of that auction.
Instead being down and depressed about it, here’s what you can do.
1. Look at it as just one step closer. In maybe an odd way, I almost crave challenges. Because at the end of the day, I know that the more challenges there are, and the more challenges I push myself through, the more challenges other people have to go through as well. If you could buy a property at your very first auction and you could do it profitably and easily, then there would be no challenges, and eventually there would be ridiculous amounts of competition because of that lack of challenge and there would be zero reason to even be in this business because margins would be nonexistent. So the fact that you didn’t win a property, is actually a GOOD thing in a way. I go to auctions to this day and when I walk out empty handed, I remind myself that I am just one step closer to being able to buy what I want at the next auction. I am constantly moving closer to my goals. I am constantly pushing myself forward. Not winning a property should be motivation to propel you forward, not an experience that drags you down.
2. It’s a learning experience. This is a big one here. I really want you to understand this. If you prepared for and attended an auction and if you can honestly say that you didn’t learn at least something by the time that auction ended, then you’re not doing it right. It’s as simple as that. Think about all those properties you researched. Did you learn something then? Think about those valuations. Think about what the auctioneer said or did. About what the other investors did or said. I really want you to think long and hard about what you learned. I promise you learned something. Again, if you didn’t it’s because you are not paying attention to what’s going on. It’s like that cartoon where all the vehicles behind you are crashing and you just keep putting along like everything’s ok. Don’t be that person. Keep your eyes open throughout this process and look for opportunities to learn. Because whatever you learned is probably something you can apply at some point in the future!
3. What will you do differently? If…anything? If this was your first auction, I’d actually hope there is quite a bit you’d do differently. Hopefully you are more efficient in your research, that you’re more accurate in your research. Perhaps you’ll determine if you need to consider a different area or a different property type. Maybe you’ll arrive earlier, or later. You’ll dress differently, bid louder or faster. Whatever it is, look for something you can do better. I’ve been going to auctions for over 16 years now and every single auction I look back and ask myself what I can do differently. Don’t get stuck in the mundaneness of auction after auction with no changes. Constantly evolve in your business.
The fact is that going to an auction and walking out empty handed can actually be just as helpful to some new investors as actually purchasing a property. When you don’t win anything, you don’t need to be depressed or frustrated about it.
You need to look at the bright side. Look at it as an experience, a challenge and an opportunity to grow. I get so many new investors that get frustrated that they didn’t win a property at their first auction. And I get that you’re excited. But if you are so frustrated that you question this business after just one auction, and you didn’t take it as an extremely valuable opportunity to learn, then perhaps you’re in the wrong business to start with.
So, the next time you walk out of any auction without winning a single deed or lien, you need to hold your head high and remember that the time you spent there was extremely valuable in the overall development of your business.
That’s it for today’s podcast. I really hope you’ve found this helpful.
For more information on tax sale investing, be sure to visit TaxSaleAcademy.com. And for the most comprehensive, step by step training offered, go to taxsaleacademy.com and click on that join button to become a member of the academy.
And as always guys, if you did enjoy this episode we’d really appreciate it if you take a few seconds to leave us some positive feedback and a five star rating. We read and notice every positive comment and are so thankful for those who have taken the time to do so already.
I really hope this has helped you out today. Take care. See you.