Transcript:
Welcome to the Tax Sale Podcast, where tax sale investing is made easy.

I’m Casey Denman, a tax sale veteran and expert, the author of the tax sale playbook, founder of the tax sale academy, leading tax sale 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. That’s taxsaleacademy.com.

Today we’re discussing growth. When you first get started investing in tax defaulted real estate, you are typically seeking your first deal. You spend many hours learning, hopefully, then you finally score your first solid deal. Then your second. Then your third and so on and so forth. While you are continually progressing, you aren’t necessarily growing. Unless you want to constantly just be on the hunt for your next deal all the time to make ends meet, you must grow your tax sale business so you have a never ending pipeline of properties to invest in.

In today’s episode, we’ll be discussing a few of the things you must do in order to grow your business.

The first thing is to reinvest. So, you’ve made your first investment. Let’s so you did well and made a few grand. Now what? Reinvest. This isn’t always the most popular suggestion you want to hear. Especially if you’re starting with very little and need money to pay bills, live or whatever else. If that’s the case, during your first few investments, you’ll likely need to have a job to afford those living expenses. Because the only way to grow your tax sale business is to reinvest. I give a pretty simple, but lengthy example inside the academy on the power of reinvesting. If you start with $1,000 and can double your money you’ll have $2,000. If you reinvest that $2,000, you’ll end up with $4,000. If you continue this for reinvestment cycle five more times, that $1,000 will turn into $32,000. Obviously, it isn’t quite that simple in the real world as returns vary, but the point of this exercise it to demonstrate the power of reinvesting.

Reinvest as much as you can as long as you can. And when you get to a point where you’re not comfortable maybe because of the market or available properties or whatever, save that money for the time when you are comfortable. When you finally are happy with the income the business is bringing in, then determine how much you can begin to take out for salary.

The next strategy for growth is expansion. And this is a two part suggestion. The first part of this is to expand market areas. When you’re first getting started, you’ll likely be fine to invest in the same market area over and over. Eventually, however, you’re going to either have more money than available properties or you’ll get to the point where you’ll seek better returns. And that’s perfectly ok. At this point it’s time to expand markets. And this can be difficult for many folks, especially those who start off in their hometown markets where they’ll usually know quite a bit about the areas and the market. But expanding into different market areas is crucial when you want to grow AND, most importantly are prepared. I’ve said before that my business begin to rapidly expand once I learned how to expand into different market. We have some videos on YouTube about this and of course we go into great detail inside the Tax Sale Academy.

Along the same lines of expanding market areas is expanding market types. As most of you might know, I’ve always leaned heavily toward vacant land. But at various points in my career, I’ve realized that I’m passing up amazing opportunities investing in homes, commercial buildings and other types of properties because of the label I put on myself. So, I took the time to learn all I could about investing in the structures in these areas, and pulled the trigger. Again, my business continued to grow because of my expansion. And perhaps the opposite is true for you – maybe you only invest in homes and should now be ready to throw some land into the mix too. Expand market areas and expand market types and your income will also follow.

The last two are common traits of growth. The first is patience. Growing any business including tax sale investing is not something that happens overnight. I’ve been in this business for more than 16 years now and I continue to work on growing my business. I have academy members who have been in the academy for over a year before that made their first investment. I have others who make an investment every other month. This is not an immediate get rich overnight business. There are certain strategies to speed up the process that we teach inside the academy, but as far as growing your business from $0 to a mult million dollar business . . . it takes time. And oddly enough, rushing the process only inhibits your ability to grow your business. I’ve heard story after story from YouTube viewers that got into this business and rushed their first or second investment which only ended up costing them money. Growth takes time. Please engrain this in your memory.

The last one is to take the time to learn. This is also, by far, the best way to grow your business. Initially, learn everything you can about what you’re planning on doing. Go through the academy, attend auctions, review previous results, learn the market, do it all. Then start . . . then guess what? Learn some more. Learning how to invest is not a one and done time situation. You must constantly be learning and doing . . . and likewise, you must do and learn from what you’re doing and seeing. And as you begin to expand, you’ll likely need even more knowledge to ensure that expansion goes smoothly. Continuous learning is your responsibility and obligation if you plan on growing your business.

So, there’s a few ways to help your business expand. One thing I should note, that goes along with the patience factor, is the you must be patient. Don’t expand too early just because you think you should. Only being to expand your business when you think you’re ready, confident and able to do so.

If you’d like our help getting you starting with tax sale investing or expanding your existing tax sale business, head to TaxSaleAcademy.com. There’s a link down in the show notes, but again it’s TaxSaleAcademy.com.

I really hope you’ve enjoyed today’s podcast. 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!