Every single tax sale auction you’ll ever attend will require you to perform “due diligence.” In this video we discuss exactly what due diligence is and what you should be doing as a potential buyer at auction.
Transcript:
Hey, everybody! Casey Denman here with TaxSaleAcademy.com. In this video, we’re talking about Due Diligence.
So what is due diligence? Well, at every single tax sale auction that you attend, there’s going to be a disclaimer there by the county. It’s going to say something along the lines of “Buyer or bidder is responsible for doing their due diligence to their satisfaction,” or it might just simply say “Buyer responsible for due diligence.”
So what does this mean? What exactly is due diligence? Well, the Merriam-Webster dictionary says that due diligence is the care that a reasonable person exercises to avoid harm to other persons or their property or to themselves.
What the heck does this mean as far as a tax sale investor goes? My definition here is that it is a person that knows absolutely everything they possibly can about a piece of property in order to make an informed decision as an investor, and whether to invest in that property or not and how much they should potentially pay for that property.
And this includes stuff like the size of the property, the condition of the property, the value of the property. Are there any code violations? What are the yearly tax amounts? What’s the desirability of that area that the property is in? So when it comes to tax sale investing, you as the tax sale investor, are responsible for your own due diligence. And when it comes down to it, if you don’t make money on that investment or you don’t make as much as you thought you would on that investment, it boils down to you not doing the proper amount of due diligence.
This is research. This is everything that we’ve talked about in past videos. Due diligence is just huge. I mean, this is what makes your tax sale investment, whether it’s successful or not successful. So, when you see the term “due diligence” on a tax sale auction list, that means you have to know absolutely everything you can about the property so you can make an informed decision whether to invest or not.
I hope that you enjoyed this video and my definition of due diligence. If you’d like more information about the very lucrative tax sale business, head on over to my website. And you can do that by clicking the blue link right here next to my head, and it will take you to TaxSaleAcademy.com. Again, that’s TaxSaleAcademy.com. And while you’re there, download your free copy of my e-book, The Tax Sale Blueprint.
Have a great day, folks! Take care! Bye-bye.