Transcript:
Hey guys, it’s Casey Denman here from Tax Sale Academy.com
First off, thanks so much for joining me on today’s livestream here on Youtube. As always, at the conclusion of this livestream, 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 talking about mistakes. Everybody makes them. Throughout your entire life you’re going to make mistakes. And that’s perfectly fine. And in most situations if you make a mistake, it won’t make a difference in the quality of your life. When it comes to tax sale investing, it can absolutely make a difference and can cost you quite a bit of money.
I did a workshop for my academy members a little while back where I detailed a number of the mistakes I’ve made in this business. Some were just embarrassing, while others cost me lots of money and stress.
Fortunately, for you, however, there are three ways you can avoid most mistakes as a tax sale investor. Now, this video may seem a little over simplified, but that’s it. Three ways.
The first way is to learn what you’re doing.
Investing in tax defaulted real estate is like no other business on earth. This is not even your standard real estate investing. This is real estate investing with a twist added in. A very common occurrence are those who watch one or two videos or think this is a get rich quick scheme, they’ll attend one auction, overpay and then they’ll lose money and will never be seen at a tax sale auction again.
Tax sale investing is not a get rich quick scheme. It is a long term sustainable, wealth building business that has existed for hundreds of years.
When it comes to the actual process, every state is a little different. Take the time to really study through the process that is used by that state and read the actual laws. We have a state law guide as well as the actual law references on our site at TaxSaleAcademy.com/state-guide and we’ll get it linked below as well. Figure out all of the ins and outs. Learn, research, make phone calls, most importantly take responsibility to know everything you possibly can about tax sale investing before you begin. We can provide loads of training, but ultimately, it’s your responsibility to see it through.
Secondly, learn about what you’re buying!
And if I could scream this into the camera and you wouldn’t think I’m crazy, I would guys. It’s that important. There are some absolutely incredible tax sale properties available, but I always try to put it into perspective for everyone before they just go and buy the first property that can afford at the auction and think they got a good deal. Here’s the situation. You have a property, where the owner failed to pay the taxes on that property. Now, there are a number of reasons why those taxes didn’t get paid. Most of them are specific to the owners. However, some are specific to the property. And what I mean by this is that there is a reason that the property is tax defaulted, in other words the owner’s didn’t feel like the property was worth the taxes they owed on it. We’re talking about the narrow strips of land, the swampland, the condemned homes, the burned down homes, the landlocked properties, the properties with environmental issues, those types of properties. The types of properties that will bring you problems, not profits. Learn everything you can about the specific property you’re buying.
And on a more general scale, learn everything you can about the area you’re investing in. Some of the biggest issues I faced was because I began investing in areas without learning about them. I bought in the wrong parts of town, marketed properties the wrong ways, broke city ordinances I didn’t even know or understand. All of this was entirely my fault. As a real estate investor you have certain responsibilities that you must take seriously. If you don’t you could find yourself in financial, civil or perhaps even criminal trouble. Learn about the property and the area.
And my last tip . . . Learn How to Operate Your Business. You’ve learned about tax sale investing, you’ve learned about the property and area you’re investing in, now it’s time to learn how to actually operate your business. And I’m not talking about what you’re going to name it or the fact that you operate to buy and sell properties and make money. I’m talking about the more technical stuff.
I’ll get students from time to time who will make quite a bit on there first property, then I’ll follow up with them after a few months and they’ll be out of cash. They will have spent the entirety of their proceeds on something. Reinvesting your profits is going to be one of the largest tips when it comes to operating your business. Other factors to consider will be with the setup of your investment entity, how you’ll deal with taxes, your accounting systems, that kind of stuff.
Additionally, you’ll need to develop systems and structure in your business. What auctions will you attend, what is your budget, your desired ROI, what are your investment objectives? All of these are questions you should start with BEFORE you buy your first property. It’s so easy to be so focused on your goal of buying and selling your first property that you forget about this type of important stuff that will set you up for long term success, which should be your end goal.
Guys, I highly suggest you take these three recommendations seriously. Don’t get so focused on the buying and selling phase that you forget about the rest. Buying at one price and selling at a higher price is easy. Before you do anything, take the time to learn what you’re doing and about the area and the property you’re investing in – know everything you can about these things. Then sit down and learn about how to operate your business. Develop short and long term goals for your business and works towards hitting those milestones. Don’t just fly by the seat of your pants and hope it works out. It might work out in the short term, but in the long term it will require a plan.
Alright guys, that’s all I’ve got for you on today’s livestream
If you enjoy these livestreams, be sure to hit that thumbs up button just so we know you’re finding out trainings useful so we’ll be able to produce more videos for you in the future.
And of course, if you’re looking to learn more about investing in tax defaulted real estate, head on over to TaxSaleAcademy.com. Again that’s TaxSaleAcademy.com.
Have a great weekend. Take care, bye bye.