In this video we discuss an investing strategy known as “Cash For Keys.” We explain exactly what this is and how YOU can greatly benefit from it!
Transcript:
Hey, everybody! It’s Casey Denman here with TaxSaleAcademy.com. In this video, we’re talking about a strategy called “Cash for Keys.” Now, Cash for Keys is a strategy that you people that are buying structures of some sort – whether it’s a home or a commercial building – will utilize when you’re dealing with occupants in these properties.
A lot of the properties will be vacant, but there will be some that have occupants. There’s a few different ways to deal with them. One method is you can leave them in the property and try to work something out. Another method is you can go through the court system and evict them. And those are lessons and methods that we will leave to a future video. What we’re talking about in this video again is called “Cash for Keys.” In this situation, this is where you want them out of the property, but you don’t want them to destroy it when they leave.
You have to remember here, when you physically evict somebody from a property using the court system, what will happen a lot of times is they aren’t going to want to go willingly. I’ve seen situations before where a sheriff’s deputy actually had to come and escort them off the property and tell them, “Hey, you are now trespassing on the property that you used to own.” It just leads to an ugly situation.
And a lot of times, what happens here is when they leave these properties, when they’re forced to leave these properties, they’re not going to do it very nicely. They’re going to go around with a hammer, bust out all the windows, and then suddenly, you’re out $2,000.00 or $3,000.00, whether you fix it, or you’re out $2,000.00 or $3,000.00 when you go to sell it because somebody’s got to fix it sooner or later.
Another situation that I actually have seen before is the person walks around with a 10 gallon tank of gasoline, pours it over the structure, lights a match. Then suddenly, your investment is, well, up in flames.
So Cash for Keys is basically a strategy to avoid all that hassle. And what you do here is you find the occupant’s name or the phone number. You call them, you email them, you visit them at their doorstep if you feel safe enough, and you say, “Listen, I understand you’re in some sort of financial distress. So, what I’m going to do is I would like to just take a look at the property.” Sometimes, you don’t really have to go inside. You may just want to look around the outside and make sure that the windows are intact and it looks in fairly good condition or as in good a condition as you expected it would be.
But you tell the occupant, “Listen, if you leave this property in the condition that it is right now, I will give you $300.00 or $400.00,” whatever the dollar amount that you decide for that specific property. And it will vary from time to time, depending on the person and basically your gut feel and instinct. But you’re going to tell him, “I will give you X amount of dollars if you leave the property in this good a condition.”
So, not only are you helping yourself to save a lot of money when it comes time to repair or you’re saving that value when you go to sell it, but you’re also helping this occupant out. You’re going to put money in their pocket that they could possibly use to move in to a new place. It’s definitely a win-win for everybody. So, that is called Cash for Keys.
I hope you enjoyed this video. If you’d like more information about the very lucrative tax sale business, head on over to my website at TaxSaleAcademy.com. And you can do that by clicking the link at the bottom of this video. Again, it’s TaxSaleAcademy.com.
Have a great day, folks! Take care! Bye-bye.