www.TaxSalePodcast.com
Transcript:
Welcome to the Tax Sale Podcast, where tax sale investing is made easy.
I’m Casey Denman, a tax sale veteran, expert, and trainer, author of the tax sale playbook, founder of the tax sale academy 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.
Every new investor wants to know about buying tax sale properties. How do I get a list, how does it work, how cheap are they, what types of properties, all of those kind of questions. It’s almost like they forget about the fact that in order to make any money you have to sell that property. Of course, there are some investors who will rent their properties our, or maybe they’ll use them personally, but most investors are buying tax sale properties to turn right around and sell them.
So I wanted to remind you guys that selling is a pretty important topic as well, right?! So in today’s livestream, I want to discuss selling real estate for a little bit. And the deal is that I can make video after video on this topic and still not cover everything. So instead of going through the entire topic of selling real estate, I wanted to choose one specific method of selling property which I refer to as the new age method of marketing and selling properties.
It’s funny when I look back. When I first got into real estate, magazines were all the rage. I’d have magazine rep after magazine rep come into my office and pitch me on the idea of advertising in their magazine. They’d talk distribution numbers in the thousands and would tell me how my properties would be in every magazine stand at every restaurant around the city. The prices were always ridiculous and the results weren’t exactly impressive. I look back at those times and laugh, and sadly most of those magazine’s have since closed shop.
Now, we’ve got it so much easier when we want to advertise our properties. As the internet became more and more popular, marketers started utilizing it more and more. Overtime, it went from a platform for specialized internet marketers to a place where normal people like you and I can advertise. And the results can be astounding and far reaching. Instead of advertising to the person that happens to eat at a restaurant and happens to pickup a magazine, we can actually advertise to our targeted audiences.
While Realtors and the conventional real estate process absolutely have their place for tax sale investors, we can also sell our own properties now easier than ever before. And we can do so by being creative, utilizing the resources available for us online and putting forth the required effort.
Let’s discuss a few of the potential ways we’re able to sell our own properties. Obviously other ways exist, but I wanted to illustrate three ways to take advantage of the internet and to get your creativity flowing.
The first way we’ll discuss is simply by advertising your property on all of the different real estate related websites. There are a lot of them, so obviously you can’t exactly classify this was as “easy”. One of the biggest advantages of using a Realtor is their access to MLS, which syndicates or automatically posts to thousands of websites including a handful of the most popular sites. Fortunately, you can now post your properties for sale as for sale by owner (or FSBOs) on many of these same sites. While you might still be required to go from site to site, and it probably won’t be as easy as immediate syndication, it can still be accomplished but will take a little effort. One of the many sites you can post your property on includes the ever so popular Zillow. Zillow in addition to a few of the other nationally known type sites can provide exposure of your property to thousands of interested buyers. It’s a great way to get your property in front of a targeted audience.
Another option are the smaller, less known local websites. These are the sites like JonesvilleForSale.com or your local classified ads. They’ll allow you to get your property directly in front of a local audience that has navigated to the real estate section of that site. Now with both the nationally known and the local sites, understand that to get the most exposure you’ll likely have to invest in some sort of upgraded package to make your listing stand out. Obviously, this will need to be a decision you make at that time based on how valuable you feel the upgraded service might be.
Another option that’s slightly different that I’ve shot videos about before are the auction websites. Most notable will be eBay and Bid4Assets. If you’re not familiar with the real estate sold on either of these website, go ahead and browse to their sites and checkout the real estate section. I’ve sold countless properties through both of these sites – it’s a fairly simple idea where you are leveraging their traffic into bidders and ultimately buyers of your properties. If you’re concerned about the sales prices, you can always set a reserve price, but what I’ve found is that the no reserve auctions perform the best. Some seller’s even charge document prep or processing fees to help offset the auction costs.
Just understand that the properties that are sold on these sites won’t be the $100,000 homes. It will likely, instead, be the $1,000 vacant lots…the cheaper properties. Using auction websites can be a great way to sell properties in an as-is format, without requiring cured titles, since it can be cost prohibitive for the low value properties. Obviously, there is so much more to learn about auctioning properties and how to handle everything, but that’s just a brief overview.
Another option really uses the resources developed from the two previous options. And that’s to create a buyer’s list. This can be performed a number of different ways, but there are certain strategies to structure it correctly so it’s as profitable as possible. That’s beyond the scope of this livestream, but essentially what you’re doing is creating a list of former and potential buyers for your properties. It can be segmented many different ways based on the geographical area, type of property and all sorts of other variables. Once you buy a property, or my favorite way actually starts before you buy a property, you’ll contact your buyers and will offer the property to them. With a quality list, you can easily sell properties within minutes of buying them. The margins might be a little smaller, but you’re shaving weeks or months off your turnaround time and your ROI is as close to immediate as you’ll get. I always recommend this strategy to anyone who is planning on doing more than just a couple of deals – and I also recommend that you start this buyer’s database as early in your career as possible.
So, there’s a few methods to market and sell your tax sale investments using the new age marketing styles that exist. Advertise them on a variety of sites, auction the properties, and sell them to members of your buyer’s list.
If you’d like to learn more about investing in tax defaulted real estate, including many more marketing techniques we’ve developed over the last 16 plus years, head on over to TaxSaleAcademy.com. That’s TaxSaleAcademy.com.
And 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!